An underground network of exclusive buyer's agents across the nation are launching a 1, 000 person e-mail campaign to the Alaskan state senate to stop the passing of a proposed bill that will retroactively eliminate liability for brokers and agents who have failed to properly disclose their agency relationships to real estate buyers.

Led by California EBA broker John J. Rygiol, the group will attempt to prevent one more action in what it sees as a national trend by traditional brokers to eliminate agency and liability to consumers.

"I'm not one who jumps up very often," says Rygiol, "but when someone puts in legislation that is a get-out-of-jail free card, the ultimate thing we are worried about is that agency is going to be knocked out eventually. Then, basically, we will be order takers."

Rykiel says that many states are already instituting anti-representation statutes that allow traditional agents to serve both sides of a transaction with fiduciary responsibilities to neither. One of the most effective ways to do this is to eliminate or delay agency disclosure to the buyer. He feels that if consumers understand that these brokers want to represent themselves, not the consumer, then that will give consumers more reason to pressure commissions. "If you're representing yourself and not me," reasons Rigiol, "why should I pay you six percent?"

It is this bigger issue at stake that is driving Rykiel and others to voice their opinions the Alaskan state senate which may be unaware that a nation's real estate agents and homebuying consumers are carefully watching what they will do.

Below is the text of the letter that Rygiol is sending to Alaskan state senators and to Gregg Renkes, Attorney General for the State of Alaska:

Ladies and Gentlemen of the State Senate of Alaska,

I am writing you in regards to HB257 on behalf of my fellow Exclusive Buyer Agents across America who oppose the destruction of proper agency disclosure to Real Estate Consumers.

This bill is about preserving a "good-old-boy network" status-quo in which homebuyers and sellers are treated like marks instead of clients.

The Senate should know that Alaska HB257 was proposed by Representative Norm Rokeberg, a commercial real estate broker, who was associated for 20 years with the company which stands to benefit from the passing of this bill. Prudential Jack White and Prudential Vista Realtors, both owned by broker Rick Fuller, has recently been slapped with a $200,000 judgment for dual agency disclosure violations. They are facing more suits from buyers who say they were improperly disclosed.

This bill is essentially a get-out-of-jail free card for a powerful brokerage which, according to the testimony of principals during the court case of Columbus VS Prudential Jack White and agent Bonnie Mehner, routinely disregards disclosure laws already in place and dismisses them as "impractical." If the bill passes, the buyers who were materially harmed by these companies and their deliberate disregard for agency disclosure statutes, will have no recourse.

Fuller's companies account for approximately one-third of the membership of the Alaska Association of Realtors. Do not let a powerful lobby by a brokerage that operates by its own rules railroad this bill through.

Please take the time to review these statements before voting on this bill.

This e-mail is being sent to over one thousand of my fellow Exclusive Buyer Agents across the country. Within 24 hours, I will forward their comments and emails to all of you.

Thank you!

John J. Rygiol

Rygiol says his hope is to "make them aware of what is happening."

"Real estate nationwide is trying to get away from common law agency," says Rygiol, "so many states have put in designated agency, and they are trying to get away from being pursued for dual agency. I always say, if you were getting a divorce, would you have your husband's attorney draw everything up and then sign it?"

Published: May 9, 2003

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