The Oklahoma Supreme Court has issued a decision slamming both dual agency and the Oklahoma Real Estate Commission, ruling that not only does The Buyer's Agent exclusive buyer brokerage franchise "save money" for buyers, but that the Commission didn't know how to read its own laws.

The exclusive buyer brokerage victory came in a Commission complaint against Buyer's Agent franchise owner Kenneth Snider of Woodard, Okla.

The Commission had complained that The Buyer's Agent advertising material was "false and misleading" because it claimed the franchise "saved buyers thousands of dollars."

The advertising also contained the warning: "Beware of any agent who mentions the words 'dual agent,' 'assigned agent,' 'contract broker,' 'facilitator,' 'transaction broker,' or 'designated agent.' These are all methods of conducting real estate transactions which give the buyers less than full representation."

The state agency had found the words false and misleading and fined Snider $200. The Buyer's Agent franchise, based in Memphis, Tenn., then filed a lawsuit against the Commission, asking that the decision be reversed.

The Commission prevailed in the district court and the civil court of appeals, but the Oklahoma Supreme Court took the case, reversed the lower courts, and thudded the Real Estate Commission.

The high court found that The Buyer's Agent had adequately proven -- with consumer affidavits -- that its service had saved homebuyers thousand of dollars.

Norris Price, executive director of the Oklahoma Real Estate Commission, said the agency had not yet received a copy of the decision and declined comment until it could be reviewed.

The high court opinion stated, "We find that the statement in the booklet (The Edge) for which the appellant was sanctioned is neither false nor misleading. Sellers' agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. … A buyer who relies on the seller's agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer.

"Accordingly, we find that the order of the Oklahoma Real Estate Commission is clearly erroneous, contrary to its own rule, and without evidentiary support and must be set aside."

Buyer's Agent President Tom Hathaway in Memphis applauded the court decision and called the ruling "important for exclusive buyer agents" all across the country. He also indicated his company would prepare a massive public relations campaign to get the ruling out to consumers.

"This validates the concept of agency representation at a time when the real estate industry is trying to minimize and eliminate that concept all together" through the passage of transactional brokerage, facilitator and other non-agency laws, Hathaway said.

"This case will be cited for years to come by attorneys when exclusive buyer broker claims are challenged by real estate agents who are trying to neutralize the benefits of full representation."

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Published: June 4, 1999

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