Non-Residential Transaction Limitations

Because this is a risky arrangement (it looks a lot like illegal Dual Agency), the law puts very strict fences around it. You can ONLY use this status if the transaction meets two specific criteria:Non-Residential Only: It must be a commercial transaction (like a mall, office tower, or agricultural land). You can never use this for a house.The Million Dollar Rule: Both the buyer AND the seller must have assets of $1 million or more. The state assumes that if you have $1 million in assets, you are sophisticated enough to understand the risks of this arrangement.You cannot just assume this role. Because it involves giving up the standard neutrality of the brokerage firm, there is a specific paperwork requirement.The Asset Check: Both the buyer and the seller must sign a disclosure stating that their assets meet the $1 million threshold.The disclosure must specifically state that they are requesting this form of representation.Confidentiality Notice: The form warns them that while their designated associate is loyal to them, the broker oversees both sides.Once the associates are "designated," they are no longer neutral. They step into the role of Single Agents.The associate designated to the buyer owes the buyer full fiduciary duties (Confidentiality, Obedience, Loyalty, Disclosure).The associate designated to the seller owes the exact same fiduciary duties to the seller.Even though both associates work for the same broker, they stop talking to each other about the deal. They treat each other like rivals to protect their clients' best interests.