OREC 2021 Comments

Did you know the Oklahoma Real Estate Commission publishes some of their decisions regarding licensee violations and the associated punishments thereof? While these publications are in no means regular, we can still draw some inferences from OREC’s comments. They also serve as a good reminder of the rules and regulations realtors must abide by (or else). This article will be a review of the Fall 2021 Commission Comments published on the OREC website here.

FAILURE TO DISCLOSE

Clients often ask us what needs to be disclosed and that depends greatly on what facts are present. The OREC rule is 59 O.S. 858-312(23) which states that its a violation for a licensee to violate the Presidential Property Condition Disclosure Act. That Act is codified as 60 O.S. 831 et subsequent. As a general matter, there is a form that needs to be completed with lists 50 different disclosures. This form must be provided BEFORE an offer is accepted. This is the most common disclosure made during residential purchases.

The alternative is to provide a disclaimer statement. This disclaimer statement (also a form found here) states 2 things: (1) the sellers have never occupied the property and (2) the sellers have no actual knowledge of any defect. If either of those 2 things are not true, a disclosure statement needs to be provided. For example, if the seller opts to use a disclaimer statement, but their realtor later discovers termites, a disclosure statement needs to be provided.

On the Fall 2021 comments, only one case involved a failure to disclose. It states that the respondent “failed to obtain and make available to the purchaser a true and accurate disclosure statement required by the residential Property Disclosure Act prior to the acceptance of an offer to purchase” and failed to “disclose to a buyer or other licensee known material defects regarding the condition of a parcel of real estate of which she had knowledge.” The punishment was surrendering of the respondent’s license.

FAILURE TO RESPOND

Of the 27 published cases, 5 included a simple failure to respond. The rule that was violated, Okla. Admin. Code § 605:10·17·2(b), states that a written response is required for all complaints. It is that simple. You just have to respond back within 15 days with an adequate written response. It surprising that Brokers and individual licenses received monetary fines simply for failing to respond to a complaint. All you have to do is respond.