When
working with a REALTOR®, it is important to understand who the REALTOR®
works for, and to whom is the REALTOR® legally obligated. The Canadian
Real Estate Association (CREA) requires REALTORS® to disclose Agency
Relationship to a potential client at the earliest time possible.
Buyers Relationship to Realtors®
A
Buyer has a choice of two relationships with a REALTOR®. As a Client, a
real estate company acting as a Buyers Agent must do what is best for
the buyer. A written contract, called a Buyer Agency Agreement,
establishes buyer agency. It also explains services the company will
provide, establishes a fee arrangement for the REALTORs® services and
specifies what obligations a buyer may have. Under such agency, a buyer
will be obliged to work with that company for a period of time. In
return, confidence a buyer shares with that company will be kept
confidential. The REALTOR® is also required to offer professional
advice, negotiate the best price for the buyer and provide the buyer
with as much information required to make the right decision.
As
a Customer the buyer can expect to be treated fairly and honestly. It
is important for the buyer to realize that under such a relationship the
REALTOR® is technically a sub-agent of the seller so that duties are
owed to that seller. However, the buyer can expect the REALTOR® to
disclose all pertinent information about a property, not to misrepresent
any facts, and to honestly answer all questions about the property.
Under such relationship with the buyer, the REALTOR® must not must not
imply that they shall negotiate a price for the buyer as that would be a
direct conflict with the REALTORs® sub-agency relationship with the
seller and a violation of our rules and regulations.
Sellers Relationship to Realtors®
A
real estate company must do what is best for the seller of a property. A
written contract, called a Listing Agreement, establishes sellers
agency. It also explains services the company will provide, establishes a
fee arrangement for the REALTORs® services and specifies what
obligations a seller must have.
Confidence
a seller shares with their REALTOR® must be kept confidential from
potential buyers and others. That REALTOR® must tell the seller anything
known about the buyer. For instance, if the REALTOR® knows that a buyer
is willing to offer more for a property, that information must be
shared with the seller.
A
seller must understand that a REALTOR® working with a buyer as a
sub-agent is ultimately working with the sellers best interest in mind. A
REALTOR® working with a buyer, as a Buyer Agent, is working for the
buyers best interest mind, but may still be compensated by the seller
through provisions made to the Listing Agent.
Multiple Representation
Occasionally
a real estate company will be the agent for both the buyer and the
seller. The buyer and seller must consent to this arrangement in their
listing and buyer agency agreements. Under this multiple representation
arrangement, the company must do what is best for both the buyer and
seller.
Since
the company's loyalty is divided between the buyer and seller who have
conflicting interest, it is absolutely essential that a multiple
representation relationship be established in a written agency
agreement. This agreement specifically describes the rights and duties
of everyone involved and any limitations to those rights and duties.
Ontario Real Estate Forms
Ontario Real Estate Forms in Plain English
Click
on a form to download. You must have Adobe Acrobat Reader installed to
view these forms. Acrobat Reader is a free download available at http://www.adobe.com/reader Standard Forms explained in plain language
The
commonly-used real estate forms available for download below offer
clause-by-clause plain language explanations of the legal terminology
used throughout them. Understanding what you are signing is essential to
having a successful transaction.
