Nebraska Real Estate Commission

COMMISSION COMMENT Winter 2005

Governor AppointsRita M. Griess to the Commission

G overnor Dave Heinemanappointed Rita M. Griess to a six-year term on the Real Estate Com-mission beginning September 2005.Rita makes her home in Lincoln. Ritais a Managing Broker for HOMEReal Estate in Lincoln.

Rita has more than twenty-fouryears of experience in the real estatefield, receiving her real estate sales-p e r s o n ’s license in April, 1981. Sher e c e ived her broke r ’s license in Feb-r u a r y, 1992. Rita has earned the CRBand CRS designations from theNational Association of Realtors ® ,and her GRI from the Nebraska Real-tors® Association.

Rita has served the real estateindustry by being an active member

On The Inside:Holiday Message from the

C h a i r p e r s o n . . . . . . . . . . . .page 2Disciplinary Actions . . . . . . . .page 3Leaving Listing Agreement . .page 4Pitfalls - Dual Agent/

P r i n c i p a l . . . . . . . . . . . . . . .page 5

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of the National, State and LocalRealtors® Associations. Nationally,she has served as a member of theEqual Opportunity/Cultural Dive r-sity Committee receiving her certifi-cation to teach the At Home WithDiversity: One America course. Atthe State level, she has served onnumerous committees and receivedthe Association’s Outstanding Serv-ice Award in 2004. Locally, Rita hasserved in various capacities receivingthree President’s Achieve m e n tAwards and two Meritorious ServiceAwards. She was also recognized asRealtor® of the Year in 1993 andPresident of the Lincoln Board ofRealtors® in 2002.

Rita serves her community invarious capacities, as well. She vol-unteers for Meals on Wheels, TheS a l vation Army, and the annualPaint-A-Thon. Rita is a regular bloodd o n o r, was a Teammates Mentorfrom 1998-1999, and taught SundaySchool for nine years at UnitedMethodist Church. Rita also partici-

pates in activities with Home RealEstate’s VIP partner, Hartley Ele-mentary School.

Additionally, Rita has served as aninstructor of both real estate pre-license and continuing educationsubject matter. She has served on thefaculty of Coldwell Banker, for theRealtors® Association, and forLarabee School of Real Estate.

Rita brings a high level of knowl-edge and broad experience to theReal Estate Commission. She will bean asset to the work of the Commis-sion.

Commission MeetingSchedule

January 18-19 . . . . . . .LincolnFebruary 23 . . . . . . . . .LincolnMarch 23-24 . . . . . . . .LincolnMay 3-4 . . . . . . . . . . . .LincolnJune 14-15 . . . . . . . . . .LincolnAugust 24-25 . . . . . . . .LincolnOctober 5-6 . . . . . . . . .Lincoln

Chairperson Gale administers the oath ofoffice to Rita Griess.

Real Estate Commission Members:Seated (l to r) ChairpersonJohn Gale, Rita Griess, andLarry Shepard; Standing (l to r) HaroldJohnson, Mike Poskochil,and Wes Grady.

Greetings!As Chair of the State Real Estate

Commission, I want to extend warms e a s o n ’s greetings to all of ourNebraska real estate brokers, sales-people and their dedicated staffs.We are proud of the work you do forthe sellers, buyers, landlords andtenants of real estate in Nebraska,and the high level of professional-ism you provide to them as theydeal with one of their most important assetsand investments.

The real estate industry in Nebraska andnationwide have demonstrated that the record housing boom for the pastdecade continues strong. Construction of new homes and apartments roseby 3.4 percent in September, the fastest pace since last February. Realestate company presidents have predicted strong sales through 2005, withpossibly another record year. While brisk construction has brought largerhome inventories in some areas, and interest rates have risen slightly, themarket is considered to be very good. We wish for you another solid yearof growth in 2006!

Broker Bob Moline’s term expired in August, and I want to acknowl-edge his outstanding leadership and commitment as a member of ourCommission. Governor Heineman appointed Rita Griess of Lincoln asour new broker representative. Rita has been very active in the REAL-TORS Association of Lincoln and the Nebraska REALTORS Associationand brings a wealth of experience and knowledge to the Commission, andwill serve her district well. Our public representative Jim Strand recentlyresigned after four years of service on the Commission; this is a chal-lenging position, as the public representative has to look at all sides of anissue, and Jim served in this capacity with wisdom and insight. We extendour warmest thanks to him for his great service. A new public represen-tative has not yet been appointed by the Governor.

From a review of our 2004-2005 Real Estate Commission Objectives,it appears that the Commission and hard-working Commission staff havemade solid progress toward achieving those goals, such as: conducting aninstructor development workshop, which was held May 12-13; renewingthe examination provider contract with Applied Measurement Profes-sionals, which was signed for an effective period through June 30, 2007;continuing to update and enhance the Commission website, which hashad a number of new features added; and passing the agency agreementamendment through the Legislature, which was done, and became effec-tive on September 4, 2005.

In addition, the Real Estate Commission, following a staff study,lowered the licensing and renewal fees $10 each and made competitiveErrors & Omissions insurance policies available to licensees in the com-mission-offered plan for $15 less than last year’s premium.

New 2005-2006 Commission Objectives have now been approved, andwe are focusing on accomplishing these new goals. The Nebraska REAL-

Official Publication of theNebraska Real Estate Commission

1200 “N” Street, Suite 402P.O. Box 94667

Lincoln, Nebraska 68509-4667(402) 471-2004

www.nrec.state.ne.usEDITOR: Teresa Hoffman

COMMISSION MEMBERS

CHAIRPERSONJohn Gale

Secretary of StateState Capitol

Lincoln, NE 68509(402) 471-2554

PUBLIC Member At LargeTBA

SALESPERSON Member At LargeMike Poskochil

7141 A St.Lincoln, NE 68510

(402) 432-3089

BROKER MEMBERS

Harold H. Johnson13915 Gold CircleOmaha, NE 68144

(402) 333-5008

Larry Shepard100 E 6th St.

Fremont, NE 68025(402) 721-9700

Wesley W. Grady810 S. Dewey St.

North Platte, NE 69103-0850(308) 532-1810

Rita M. Griess5901 N. 27th St.

Lincoln, NE 68521(402) 323-8700

DIRECTOR

Les Tyrrell1200 “N” Street, Suite 402

Lincoln, NE 68508(402) 471-2004

Director@nrec.state.ne.us

The Nebraska Real Estate Commission grantspermission to reprint articles which appear in thisnewsletter on condition that recognition of theiroriginal publication in the Nebraska CommissionComment also appears with the article.

The Nebraska Real Estate Commission oftensolicits articles from outside experts or reprintsarticles with permission. While we feel that thesearticles may offer a broader perspective and will beof interest to the reader, it should be rememberedthat the views expressed are those of the author andnot necessarily those of the Commission.

COMMISSION COMMENT

Nebraska Real Estate Commission

Printed with soy ink on recycled paper

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(Continued on page 8)

MEET THE REAL ESTATECOMMISSION STAFF

The Real Estate Commission Staff ishere to serve the public and the licenseepopulation. It is our goal to be helpful andforthright in a courteous and professionalmanner. We hope that when you contactour office, you always receive useful,accurate information and/or are referred tothe proper authority.

Following is a communication resourceto assist you when contacting our office. Ifthe indicated person is unavailable to takeyour call, please share the purpose for thecall and your call will be routed tosomeone else who can help you.

We take pride in having a skilled staff,if you have comments or suggestions as tohow we may better serve you, pleasecontact our office.

COMMUNICATIONS GUIDE

(Please note changes since September 1, 2005)

Ask for person indicated if you have questions in

the following areas.Commission Meeting Information . . .Monica Wade

Complaint Procedures . . . . . . . . . . . . Terry MayroseDDEnf@nrec.ne.gov

Continuing Education History orInquiries . . . . . . . . . . . . . . Melanie Patrick-Heather

EdEnf@nrec.ne.gov

Curriculum Design (Education &Instructor Approval) . . . . . . . . . . . . Teresa Hoffman

DeputyD@nrec.ne.gov

Errors and Omissions InsuranceInquiries . . . . . . . . . . . . . . . . . . . . . Teresa Hoffman

DeputyD@nrec.ne.gov

License Applications PacketRequests . . . . . . . . . . . . . . . . . . . . . . . General Staff

License Applications Process . . . . . Marilyn MastersApplic@nrec.ne.gov

Licensing and Education Requirements . . . . . . . . . . . . . . . . . Teresa Hoffman

DeputyD@nrec.ne.gov

New Licenses in Process . . . . . . . . Marilyn MastersApplic@nrec.ne.gov

Specialized Registrations . . . . . . . . . . Monica WadeFinance@nrec.ne.gov

Transfer of License . . . . . . . . . . . . . . . Tawny SniderLicTsf@nrec.ne.gov

Trust Account Matters . . . . . . . . . . . . Terry MayroseDDEnf@nrec.ne.govJohn ClarkPatricia StehlyRon Pierson

Webmaster. . . . . . . . . . . . . . . . . . . . . . Monica WadeFinance@nrec.ne.gov

WEBSITE: www.nrec.state.ne.us

TELEPHONE NUMBER(402) 471-2004FAX NUMBER(402) 471-4492

ADDRESS:Nebraska Real Estate Commission

P.O. Box 94667Lincoln, NE 68509-4667

2005-015 – Carmon D Yusten vs.Charlotte Irene James, Broker. Stipula-tion and Consent Order. License cen-sured; plus an additional six (6) hours ofcontinuing education, including three (3)hours in the area of license law and three(3) hours in the area of ethics, to be com-pleted by February 9, 2006. [ViolatedNeb. Rev. Stat. § 81-885.24 (29) bydemonstrating unworthiness to act as abroker by attempting to collect a com-mission from the clients prior to a pro-posed closing.] October 13, 2005

2004-014 – Donald ChristopherMiller vs Timothy Kuchta Jr., Broker.Stipulation and Consent Order. Licensecensured; plus an additional three (3)hours of continuing education in the areaof agency, to be completed by December12, 2005. [Violated Neb. Rev. Stat. § 81-885.24 (16) by violating any provision ofsections 76-2401 through 76-2430,specifically, Neb. Rev. Stat. § 76-2421(1) At the earliest practicable opportu-nity during or following the first sub-stantial contact with the seller, landlord,buyer, or tenant who has not entered intoa written agreement for brokerage ser-vices with a designated broker, thelicensee who is offering brokerage ser-vices to that person or who is providingbrokerage services for that propertyshall: (a) provide that person with awritten copy of the current brokeragedisclosure pamphlet which has been pre-pared and approved by the commission;and (b) disclose in writing to that personthe types of brokerage relationships thedesignated broker and affiliatedlicensees are offering to that person ordisclose in writing to that person whichparty the licensee is representing.]

October 13, 2005

2005-022 - Kathi Ward vs BruceDaniel Abraham, Broker. Stipulationand Consent Order. License suspendedfor a period of twenty four (24) monthscommencing on November 16, 2005,through November 16, 2007, with theentire period served on probation; plus

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Disciplinary Actions Taken bythe Real Estate Commission

(Does Not Include Cases on Appeal)

an additional nine (9) hours of additionalcontinuing education with three (3)hours being in the area of agency, three(3) hours in the area of license law, andthree (3) hours in the area of ethics, all tobe completed by March 16, 2006. [Vio-lated Neb. Rev. Stat. § 76-2417 (1) Alicensee representing a seller or landlordas a seller’s or landlord’s agent shall bea limited agent with the following dutiesand obligations: (a) To preform theterms of the written agreement madewith the client; (b) To exercise reason-able skill and care for the client, and (c)To promote the interests of the clientwith the utmost good faith, loyalty, andfidelity; Neb. Rev. Stat. § 81-885.24 (2)Intentionally using advertising which ismisleading or inaccurate in any materialparticular or in any way misrepresentsany property, terms, values, policies, orservices of the business conducted; Neb.Rev. Stat. § 81-885.24 (22) Making anysubstantial misrepresentations; and Neb.Rev. Stat. § 81-885.24 (29) Demonstrat-ing negligence and unworthiness to actas a broker. November 16, 2005

2005-047 – Commission vs NadaResnik-McNenny, Broker. Stipulationand Consent Order. License censured;plus an additional six (6) hours of con-tinuing education with three (3) hours inthe area of agency, and three (3) hours inthe area of license law to be completedby February 14, 2006. [Violated Neb.Rev. Stat. § 76-2422 (2) Before engag-ing in any of the activities enumerated insubdivision (2) of section 81-885.01, adesignated broker intending to establisha single agency relationship with a selleror landlord shall enter into a writtenagency agreement with the party to berepresented. The agreement shall includea licensee’s duties and responsibilitiesspecified in section 76-2417, the termsof compensation, a fixed date of expira-tion of the agreement, and whether anoffer of subagency may be made to anyother designated broker; and Neb. Rev.

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Stat. § 81-885.24 (29) by demonstratingnegligence to act as a broker.

November 16, 2005

2005-017 – Commission vs RobertaL. Springer, Broker. Stipulation andConsent Order. License permanentlysurrendered. [Violated Neb. Rev. Stat. §81-885.24 (26) by violation of a rule orregulation adopted and promulgated bythe Commission in the interest of thepublic and consistent with the NebraskaReal Estate License Act, specifically thestipulated facts demonstrate a violationof Title 299 Chapter 5-003.17, by failingto produce documents, books andrecords in the licensee’s possession, orunder her control, concerning any realestate transaction under investigation bythe Commission as requested by theCommission on December 17, 2004;Neb. Rev. Stat. § 81-885.24 (29) bydemonstrating negligence, incompe-tency or unworthiness to act as a broker,by utilizing, or allowing the utilization,of services of individuals without an“active” Nebraska real estate license fortime-share sales in Nebraska on behalfof a Florida time-share development forwhich she was the designated broker;and by failing to provide transaction fileswhen requested on December 17, 2004.November 16, 2005

2 0 0 5 - 0 3 0 - Michael Inzauro vsRussell Allen Craig, Salesperson. Stipu-lation and Consent Order. License cen-sured; plus an additional six (6) hours ofcontinuing education with three (3)hours in the area of license law, andthree (3) hours in the area of agency tobe completed by February 14, 2006.[Violated Neb. Rev. Stat. § 76-2418 (1)A licensee representing a buyer as abuyer's agent shall be a limited agentwith the following duties and obliga-tions: (b) To exercise reasonable skilland care for the client; (c) To promotethe interests of the client with the utmostgood faith, loyalty, and fidelity, includ-ing; (iv) Advising the client to obtainexpert advice as to material mattersabout which the licensee knows but thespecifics of which are beyond the exper-tise of the licensee; and Neb. Rev. Stat. §81-885.24 (29) by demonstrating negli-gence to act as a salesperson.

November 16, 2005

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Disciplinary Action (Cont’d) When Are You Leaving TheListing Agreement?

As the result of a complaint, the Commission has readdressed theissue of when to leave a copy of the listing agreement with the princi-pal to a transaction. The Nebraska Real Estate License Act at Neb. Rev.Stat. § 81-885.24(19) provides that it is an unfair trade practice if alicensee fails to include a fixed date of expiration in any written listingagreement and fails to leave a copy of the agreement with the princi-pal. The principal is the seller(s) of the property.

The Commission takes the position that the licensee must leave acopy of the listing agreement with the principal when the principalmeets with the licensee to sign the document. Argument has been madeby licensees that the licensee has a reasonable time after the principalsigns the listing agreement to deliver a copy to the principal. The statu-tory language does not provide for a reasonable time for delivery. Thestatute does allow a reasonable time for delivery following signing ofthe purchase agreement. Since the statutory language is differentbetween the two sections, the interpretation is different.

A copy of the listing agreement must be left with the principal at thetime the agreement is entered into since this is the document that startsthe relationship between the parties. The principal is entitled to imme-diately have a copy of the document which sets forth the obligation ofthe parties to the agreement. This requirement can be met by printingtwo copies of the completed agreement from a computer; by complet-ing two copies of a “fill-in-the-blanks” form; by having the listingagreements printed on “NCR” paper; by having the ability to photo-copy the completed agreement at the site of the signing; or by usingcarbon paper.

If you happen to be a licensee who is not currently complying withthis provision, you should immediately bring your practice into com-pliance.

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The Pitfalls of Being A Dual Agentand a Principal to A Tr a n s a c t i o n

(Editor’s note: The following article waswritten by Special Assistant AttorneyGeneral Abbie Widger at the request of theCommission. It is intended to give guidanceto licensees who find themselves in such cir -cumstances.)

Over the past few months, theCommission has addressed the issueof whether a real estate licensee mayact as a limited dual agent in a trans-action where the licensee is also aprincipal.

Before discussing the ramifi c a-tions or pitfalls of a licensee/princi-pal being a limited dual agent in atransaction, let us review the dutiesand obligations of a limited dualagent as outlined in the Agency Rela-tionships statutes. The duties are asfollows:

1. Perform pursuant to the termsof the written agreement;

2. Exercise reasonable skill andcare for the client;

3. Promote the best interests ofthe client with the utmost goodfaith, loyalty and fi d e l i t yincluding:

a. Seeking a price and termswhich are acceptable to theclient;

b. Presenting all written offers tothe client;

c. Disclosing to the client alladverse material facts actuallyknown by the licensee; and

d. Advising the client to obtainexpert advice as to materialmatters about which thelicensee knows but thespecifics of which are beyondthe expertise of the licensee.

4. Account in a timely manner forall money and propertyreceived;

5. Comply with all laws; and

6. Disclose all adverse materialfacts actually known by thelicensee. The adverse materialfacts may include:

a. Environmental hazards affect-ing the property;

b. The physical condition of theproperty;

c. A ny material defects in theproperty;

d. Any material defects in the titleof the property; or

e. Any material limitation on theclient’s ability to perform.

In addition, the limited dual agentmay disclose any information to oneclient that the licensee gains from theother client if the information is rele-vant to the transaction or the client,unless prohibited by the statue. If thelicensee learns that the property con-tains an underground storage tank,the licensee has a duty to report thematter to the potential buyer since itis probably relevant to the use of theproperty.

The limited dual agent shall notdisclose, how eve r, without theinformed written consent of theclient to whom the informationpertains the following confiden-tial information:

That a buyer is willing to paymore than the purchase priceoffered for the property; Thatthe seller is willing to acceptless than the asking price forthe property; What the moti-vating factors are for anyclient buying or selling theproperty; and

That the client will agreeto financing terms otherthan those offered.

Licensee/Seller

You are a licensed real estatebroker or salesperson and you ownreal estate. You could decide to offerthe property for sale by owner; notact as a licensee and not have toworry about being a limited dualagent. Your requirements would bedisclose, in writing, to any buyerprior to the buyer becoming oblig-ated to purchase the property: a) yourinterest in the property; and b) thefact you are a real estate licensee.You, however, decide to sell the realestate and list it with the firm withwhich you are associated with you asthe limited seller’s agent for yourself.As you hoped, several people areinterested in the property. Every timeyou show the property you completethe Agency Acknowledgment disclo-sure identifying yourself as a limitedseller’s agent and working with thepotential buyer as a customer. Even-

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tually, you sell the property to one ofthese buyers who you did not repre-sent as a limited buyer’s agent. Thissituation was dual agency free! Whatwould happen if a person(s) you arerepresenting as a limited bu y e r ’sagent became interested in yourproperty and wants to see it? What doyou do? Do you enter into limiteddual agency with this buyer or do yourequest assistance?

Licensee/Buyer

You are a licensed real estatesalesperson or broker and you wishto purchase some real estate.You look at for sale by ownerproperties and at thoseproperties for which youare not a limited seller’sagent. You make an offeron one of these propertieswhich includes the disclo-sure to the seller that you,as the buyer, are a realestate licensee. Theseller accepts the offerand no dual agency hasoccurred. What wo u l dhappen if you decided tomake an offer on a propertyon which you are the limitedseller’s agent? What do you do?Do you enter into limited dualagency with this seller, or do yourequest assistance? (Note: This lastsituation does not intend to coverwhat has been known as a “guaran-teed sale”program.)

A licensee in either of these twosituations should request assistancefrom his or her designated or super-vising broker. The situation shouldbe discussed with the broker and arequest made to have a diff e r e n tlicensee with no possible dual agencyissues be assigned to represent the

other principal. Although, there is noprohibition in licensing laws or theA g e n cy Relationships statutesagainst a licensee acting as a limiteddual agent and a principal in the sametransaction, it is not recommendedthat such a position be taken by alicensee. If you still decide to goforward as a dual agent and principal,remember, prior to the other principalbecoming obligated to perform undera contract, to disclose, in writing,under Title 299, Chapter 5, Sections003.04 and 003.08, respectively, thatyou as a licensee have an interest in

the property you are buying or sellingand that you are acting in the dualcapacity of agent and principal. You,of course also need to make all otherproper disclosures, including the dualagency consent.

Pitfalls

One may question whether thelicensee operating as a limited dualagent/principal in the above scenar-

ios is representing the best interestsof the other client/principal if thelimited dual agent cannot discloseinformation about himself or herself.For example, the a limited dualagent/seller could not reveal to thebuyer that the limited dualagent/seller would take less than thelisting price for the property. Yet, thelimited dual agent/seller would berequired to disclose that he or shemay not be able to perform on thepurchase agreement. It may be diffi-cult for the limited dual agent/sellerto disclose that he or she is unable or

unwilling to close on the prop-erty. If he or she does not

disclose this fact, there isan issue as to whether thelicensee is representingthe best interests of the

bu y e r. If the limiteddual agent is the buyer,he or she cannot revealthat he or she wouldpay more than the

asking price. Yet, ifthe limited duala g e n t / b u y e rb e l i eves theproperty is worths u b s t a n t i a l l y

more than theseller is asking, is

the limited duala g e n t / buyer representing

the best interests of the sellerby not informing the seller?

The statutes also provide that thelimited dual agent may not discloseto one client any confidential infor-mation about the other client unlessfailure to disclose the informationwould be fraudulent misrepresenta-tion. For example, if the limited dualagent/buyer made an offer, knowinghe or she could not obtain a loan forthe offer price, his or her silence may

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Pitfalls of ... (Cont’d)

(Continued on page 7)

not be in the best interests of thes e l l e r. Also, if a limited duala g e n t / buyer knew the seller wa sasking substantially less than thevalue of the property, the limited dualagent/buyer’s silence may not be inthe best interests of the seller. Both,may be fraudulent misrepresentation.

Pursuant to the Agency Relation-ships statutes, there is no imputationof knowledge or informationbetween any client and the licensee.This means that just because theseller knows a fact about the prop-erty, the law does not automaticallyassume the licensee has knowledgeof the fact due to his or her represen-tation of the seller. However, whenthe licensee is a limited dual agentand the principal, the licensee maylose this protection and the knowl-edge of the client may become theknowledge of the licensee. You willnote that the previous sentence usesthe word “may”. This is because thespecific issue has not been litigatedin the courts or before the Commis-sion. However, it would be hard forthe licensee to argue no knowledge.

When complaints are filed withthe Commission concerning thelimited dual agency/principal issue,the Commission will generallyexamine several factors to determineif there is a violation of the agencystatutes. The transaction will bereviewed to make sure all the neces-sary disclosures have been made. TheSeller Property Condition DisclosureStatement (SPCDS) will be exam-ined to determine the extent of thedisclosure. Since the limited dualagent/seller has an obligation to rep-resent the buyer with the utmost foodfaith and fidelity and disclose alladverse material facts, the disclosureon the SPCDS is critical. If there isno inspection of the property, the

Commission will question whetherthe limited dual agent/seller encour-aged or discouraged the buyer toobtain inspections. If the buyer ques-tions the stability of a retaining wall,for example, and the licensee dis-couraged an inspection of the retain-ing wall, a close examination of therepresentation of the buyer will occurshould the retaining wall fall downafter closing. Although not a techni-cal violation if the License Act orAgency Relationships statutes, actingas a principal and a limited dualagent may lead to other regulatoryviolations for the unwary licensee.

If the purchase agreement containslanguage that “the offer is based onthe buyer’s inspection of the propertyand not based on any representationsand warranties of the condition bythe agent,” the buyer may be able tomake a claim that this clause is void-able since the agent was the seller.Acting as the principal and thelimited dual agent may require anexamination of certain clauses in thepurchase agreement.

Some states have completelybanned the practice. In Utah, thestatute specifically provides that alicensee may not act or attempt to actas a limited agent in any transactionin which: a) the licensee is a principalin the transaction; or b) any entity inwhich the licensee is an offi c e r,director, partner, member, employee,or stockholder is a principal to thetransaction.

Courts have stated that the rela-tionship of agent and principal isfiduciary in nature, founded on trustor confidence reposed by one personin the integrity and fidelity ofanother. Included in the fundamentalduties of such fiduciary are goodfaith and fidelity, and full and fairdisclosure. Such duties are imposedon real estate licensees by licenselaw, rules and regulations, contract

l aw, the principals of the law ofagency and tort law. The object ofthese rigorous standards of perfor-mance is to secure fidelity from theagent to the principal and to insurethe transaction of the business of theagency to the best advantage of theprincipal. Therefore, a licensee mustprove, prior to undertaking to act as alimited dual agent, the licensee madea full and complete disclosure to allparties as a predicate for obtainingthe consent of the principals toproceed in the undertaking. This isespecially true where the limited dualagent is a principal, as questions willbe asked to assure that they havecarefully considered the possibleconsequences of a dual agency rela-tionship. The fiduciary duty ofloyalty that the licensee owes to theclient prohibits the licensee fromadvancing any interests averse to theclient or conducting business tobenefit the agent or others. Althoughtechnically legal in itself, the wisestcourse of action may be to involveanother agent so as to avoid the pit-falls.

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Pitfalls of ... (Cont’d)

Nebraska Real Estate CommissionPO Box 94667Lincoln, NE 68509-4667

Return Service Requested

8

TORS Association has suggested some new policy revisions, which are now under study by Commission staff.Such helpful input from the industry always receive close attention and review, as we consider ways to improveeffective and progressive regulatory oversight for our licensees.

We are pleased that the processing time for the State Patrol for criminal history checks has been dramaticallyreduced, and this will help expedite the taking of examinations by new applicants. The Commission continues togive close attention to applicants with any criminal background; our guidelines continue to be enforced with con-sistency, so some are allowed to sit for license examinations, and others are not. We consider this to be a veryimportant duty to preserve public confidence and trust in the industry and in the Commission’s oversight.

On behalf of all of the Commissioners, I send our best wishes to you for a season of family celebrations, and therichness of friendships! We all have much to be grateful for as citizens of our great nation with its freedoms andliberties. May your New Year be one of new successes, positive life adventures, and fulfillment of your own per-sonal goals and resolutions for 2006!

Sincerely,John A. GaleChair and Secretary of State

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Greetings (Cont’d)