In the complex world of real estate transactions, understanding who represents whom is crucial for all parties involved. While many homebuyers choose to work with a real estate agent who represents their interests, some buyers decide to navigate the purchase process without representation. When this happens in Arizona, an important document comes into play: the Unrepresented Buyer Disclosure.
This single-page form, created by the Arizona Association of REALTORS®, serves as a critical communication tool between sellers’ agents and unrepresented buyers. It clarifies the nature of the relationship, outlines the duties of the seller’s broker, and helps protect all parties by ensuring everyone understands their respective roles and responsibilities.
Whether you’re a buyer considering proceeding without representation, a seller whose agent may need to use this form, or a real estate professional navigating agency relationships, understanding the purpose and implications of the Unrepresented Buyer Disclosure is essential for a smooth transaction and proper legal compliance in Arizona’s real estate market.
The Unrepresented Buyer Disclosure exists primarily to address a common misconception in real estate: the assumption that all real estate agents work for or represent both parties in a transaction. In reality, agency law is much more specific about who represents whom and what duties they owe to each party.
In Arizona, like most states, real estate brokers and agents have fiduciary duties to their clients. These duties include loyalty, obedience, disclosure, confidentiality, and accounting—legal obligations that require the agent to put their client’s interests above all others, including their own. When a buyer works directly with a seller’s agent without their own representation, they might incorrectly assume that the seller’s agent is also working in their best interest.
The Unrepresented Buyer Disclosure was developed to eliminate this confusion. It makes clear that the seller’s agent works exclusively for the seller and helps unrepresented buyers understand that they are not receiving the benefits of fiduciary representation in the transaction.
From a legal perspective, this form helps fulfill the seller’s agent’s responsibility to deal fairly and honestly with all parties in a transaction while maintaining their fiduciary duties to the seller. It also provides documentation that the unrepresented buyer was properly informed about the nature of the relationship, which can be important if disputes arise later.
The Unrepresented Buyer Disclosure is typically used in several specific scenarios:
The form should be presented early in the interaction, ideally before the buyer shares personal financial information or begins serious discussions about making an offer. This ensures the buyer understands the relationship parameters before engaging in substantive transaction activities.
The Unrepresented Buyer Disclosure form is compact but comprehensive in explaining the nature of an unrepresented buyer’s relationship with a seller’s agent. Let’s examine each section in detail:
The top of the form includes spaces for:
This information clearly identifies all parties involved and the specific property being considered, ensuring there’s no ambiguity about which transaction the disclosure applies to.
In capital letters, the form begins with an important notice: “SELLER BROKER INFORMED UNREPRESENTED BUYER OF THEIR RIGHT TO HIRE A BUYER BROKER WHO WOULD REPRESENT ONLY THEM. HOWEVER, UNREPRESENTED BUYER HAS ELECTED NOT TO BE REPRESENTED BY A BUYER BROKER IN THE PURCHASE OF THE PREMISES AND ACKNOWLEDGES THE FOLLOWING:”
This statement serves two key purposes:
This establishes that the buyer is making an informed choice rather than being unaware of the possibility of representation.
The form then lists six important points that the unrepresented buyer acknowledges:
This section clarifies that the seller’s broker represents only the seller and does not represent the unrepresented buyer. It explains that while the broker may provide documents and conduct activities that facilitate the transaction, these actions are performed solely for the seller’s benefit, not the buyer’s. Importantly, it states that these activities “do not create an agency relationship” with the buyer.
This reminds the buyer to review and sign the READE (Real Estate Agency Disclosure and Election) form, which further explains agency relationships and acknowledges that the seller’s broker only represents the seller.
This critical section explains that the seller’s broker owes fiduciary duties to the seller, including loyalty, obedience, disclosure, confidentiality, and accounting. It warns the buyer not to disclose confidential information to the seller’s broker, as the broker is obligated to convey that information to the seller.
While the seller’s broker must be honest and truthful with the unrepresented buyer and deal fairly with them, this section clarifies important limitations. The duty to deal fairly does not include:
It also emphasizes that the seller’s broker is not responsible for verifying or vouching for the seller’s representations.
This section places responsibility on the unrepresented buyer to protect their own interests. It encourages them to hire professionals for advice on real estate, inspections, contract timelines, financing, zoning, law, tax, insurance, or any other relevant areas. It explicitly states that the unrepresented buyer “assumes all risk” if they choose not to hire professionals.
The final section reminds the buyer that broker compensation is not set by law, is fully negotiable, and will be paid by the seller according to a separate agreement. This helps prevent any misunderstanding about who is paying the broker and clarifies that compensation arrangements don’t create an agency relationship with the buyer.
The form concludes with a statement acknowledging receipt and understanding of the disclosure, along with spaces for the unrepresented buyer’s signature, printed name, and date.
For buyers considering proceeding without representation, the Unrepresented Buyer Disclosure highlights several significant risks:
Without your own agent, no real estate professional in the transaction is legally obligated to put your interests first. The seller’s agent is bound by fiduciary duties to achieve the best outcome for the seller, which often means the highest price and most favorable terms.
Anything you share with the seller’s agent—including your maximum budget, timeline pressures, or enthusiasm for the property—must be conveyed to the seller, potentially weakening your negotiating position.
Real estate contracts contain complex legal language and contingencies. Without representation, you’re responsible for understanding all contract terms without professional guidance.
Real estate transactions involve numerous deadlines, inspections, disclosures, and procedures. Missing any of these can have significant financial or legal consequences.
Professional buyer’s agents provide market insights, comparable sales data, and neighborhood information that can help buyers make informed decisions and formulate appropriate offers.
Experienced buyer’s agents typically have networks of inspectors, lenders, title companies, and other professionals whose expertise can benefit buyers throughout the transaction.
If you’re a real estate professional representing sellers, using the Unrepresented Buyer Disclosure form properly is essential for both legal compliance and ethical practice:
Provide this disclosure as soon as you recognize a buyer is unrepresented and showing serious interest in a property. Don’t wait until they’re ready to write an offer.
Take time to explain each section of the form, ensuring the buyer understands the implications of proceeding without representation.
While you can’t require a buyer to obtain representation, consistently recommend that unrepresented buyers consider working with their own agent.
Keep detailed records of when and how you provided the disclosure, and ensure the signed form is retained with other transaction documents.
Be especially careful to avoid making statements or taking actions that could be interpreted as creating an agency relationship with the unrepresented buyer.
While maintaining loyalty to your seller client, ensure all interactions with unrepresented buyers are honest, transparent, and fair.
In some cases, it may be appropriate to provide unrepresented buyers with a list of several qualified buyer’s agents they might consider working with.
If you’re a buyer who has been presented with an Unrepresented Buyer Disclosure form, consider these important points:
This form is telling you that the agent you’re dealing with works exclusively for the seller and cannot give you advice or guidance on protecting your interests.
Now is an excellent time to reconsider whether you want to proceed without your own agent. In most residential transactions, buyers don’t directly pay their agent (compensation typically comes from the seller’s proceeds), so cost alone may not be a compelling reason to remain unrepresented.
If you decide to proceed without an agent, it becomes even more critical to hire other professionals to protect your interests, including:
Be very careful about what information you share with the seller’s agent, understanding that they are obligated to share anything relevant with the seller.
Create a system to track deadlines and contingencies yourself, as the seller’s agent is not responsible for reminding you of these critical dates.
While you can ask the seller’s agent for information about the property and process, seek independent advice when it comes to decision-making, negotiation strategies, and determining appropriate offer terms.
The Unrepresented Buyer Disclosure works in conjunction with several other forms in the Arizona real estate ecosystem:
The Unrepresented Buyer Disclosure references this form, which provides a more comprehensive explanation of possible agency relationships. Unrepresented buyers should review this form to understand the representation options they’re choosing to forgo.
This separate form addresses situations where a buyer has representation but needs to work directly with a seller whose agent is temporarily unavailable.
The seller’s broker’s duties outlined in the Unrepresented Buyer Disclosure stem from obligations established in the listing agreement between the seller and their broker.
Agency relationships affect how the purchase contract is negotiated and executed. The Unrepresented Buyer Disclosure helps establish clear understanding before this critical document is prepared.
To illustrate how the Unrepresented Buyer Disclosure works in practice, consider these scenarios:
Sarah visits an open house hosted by Tom, the listing agent. She mentions she’s not working with an agent and is very interested in making an offer. Before discussing offer strategy or price, Tom explains that he represents only the seller and provides Sarah with the Unrepresented Buyer Disclosure form, explaining each section. Sarah now understands that Tom cannot advise her on offering price or terms and decides to interview several buyer’s agents before proceeding.
Michael calls about a “For Sale” sign on a property and speaks directly with the listing agent, Jessica. He wants to see the home immediately and mentions he’s been pre-approved for financing. Before showing the property, Jessica explains her role as the seller’s agent and provides the Unrepresented Buyer Disclosure. After reviewing it, Michael decides to proceed without representation but hires a real estate attorney to review any offers he decides to make.
David is selling his home himself but has hired an agent, Marco, for limited services including MLS listing and contract preparation. When buyer Ashley contacts David directly, David arranges for Marco to prepare the purchase contract. Before doing so, Marco provides Ashley with the Unrepresented Buyer Disclosure to clarify that although he’s preparing the contract, he represents only the seller’s interests.
The Unrepresented Buyer Disclosure form serves as an important protection for all parties in Arizona real estate transactions. For sellers and their agents, it clarifies relationship boundaries and helps fulfill disclosure obligations. For buyers, it provides clear information about the implications of proceeding without representation, allowing for informed decision-making.
While some buyers may still choose to proceed without representation after receiving this disclosure, they do so with a clearer understanding of what that choice means for their transaction experience. They know they’ll need to be especially diligent about protecting their own interests and seeking appropriate professional advice outside of the real estate agent relationship.
For real estate professionals, the proper use of this form demonstrates commitment to ethical practice and transparency. It helps prevent misunderstandings about roles and responsibilities that could otherwise lead to disputes or complaints.
In Arizona’s real estate market, clear communication about representation is not just a legal requirement—it’s a foundation for smoother transactions and better outcomes for all parties involved. The Unrepresented Buyer Disclosure plays a vital role in establishing that clarity when buyers choose to proceed without their own agent.