Caveat Emptor: Rights of Home Buyers in the State of Missouri

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The State of Missouri requires professionals to obtain a license before providing services to the public, in many careers. Misconceptions hold that issuance of licenses is just something that is needed in order to charge money for services. Licenses are issued however, because the public puts their trust in professionals who are more knowledgeable than they are. Many people today want to avoid the hassles and risks associated with the transfer of land, so they put their trust in licensed real estate professionals. The Missouri Broker Disclosure Form (MBDF) is a document used by the Missouri State Real Estate Commission that attempts to provide the public, knowledgeable information, about agency relationships (the fiduciary relationship between buyers/sellers and agents). It also holds real estate agents and brokers somewhat accountable to the public in representing them in their best interest; all real estate agents are required to present and explain this form to buyers and sellers. It seems in today’s society that greed, corruption, and self-interest has spread like an infectious disease and we live in a world where it is risky to put our trust in other people. The government tries to respond to that corruption by putting into place more regulations and laws to keep people honest. In summary, the Missouri Broker Disclosure Form is a document designed to help the public make an informed choice about the agency type, of the people that they are putting trust in, and the fiduciary commitments due to them.

With that in mind, it is important to understand a couple of concepts before analyzing and determining the effectiveness of that document. Although people do not always realize it, the purchase of a home is one of the b...

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...ost of the time, if the person in front of him/her will sign the form, stating that they have read it, it has served its purpose; the agent has done what is required to keep the Missouri Real Estate Commission (MREC) auditors happy. Many people find the MBDF to be ambiguous, not so much because of the way it is written, but because the definitions and rules that the MREC have created are in fact, in themselves, ambiguous. The document should however communicate to a buyer or seller that the State of Missouri does take issues such as ethics, honesty, and trust seriously; and they will take action against unscrupulous agents who disregard such, and work merely to pad their own pockets, thereby enabling buyers and sellers to actually put their trust in licensed real estate professionals. In that sense, the Missouri Broker Disclosure Form is an effective instrument.

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