In Real Estate, there are different possible forms of Agency Relationships. When working with a REALTOR®, it is important to understand who the REALTOR® works for and to whom the REALTOR® is obligated.
Seller Representation
When a Real Estate Brokerage is acting under "Seller's Representation", it must do what is best for the seller of the property.
A written contract, called a Listing Agreement. establishes Seller Representation. It also explains the services the Brokerage will provide, establishes a fee arrangement for the REALTOR's services and specifies what obligations a Seller may have.
A Seller's Represenative must tell the seller anything about a buyer. For instance, if a Seller's Representative knows a Buyer is willing to offer more for a property, that information must be shared with the Seller.
Confidences a Seller shares with the Seller's Representative must be kept confidential from potential Buyers and others.
Although confidential information about the Seller cannot be discussed, a Buyer working with a Seller's Representative can expect fair and honest service from the Seller's Representative and disclosure of pertinent information about the property.
Buyer Representation
A Real Estate Brokerage acting as a "Buyer's Representative" must do what is best for the buyer.
A written contract, called a Buyer Representation Agreement, establishes Buyer Representation, it also explains services the Brokerage will provide, establishes a fee arrangement for the REALTOR'S services and specifies what obligation a buyer may have.
Typically, Buyers will be obligated to work exclusively with that Brokerage for a period of time.
Confidences a Buyer shares with the Buyer's Represenative must be kept confidential. Although confidential information about the Buyer cannot be disclosed, a Seller working with a Buyer's Representative can expect to be treated fairly and honestly.
For More Information on Byuer Representation please check out the links below:
Buyer Representation Agreement Click Here
Buyer Representation Agreement (Toronto Real Estate Board) Click Here
Multiple Representation
Occasionally a Real Estate Brokerage will be the agent of both the Buyer and Seller. The Buyer and Seller must consent to this agreement in their Listing and Buyer Representation agreements. Under this "Multiple Representation" arrangement, the brokerage must do what is best for both the buyer and seller.
Who is Working For You?
It is important that you understand who the REALTOR® is working for. For example, both the Seller and the Buyer may have their own sales representative which means they each have a REALTOR® who is working for them.
Some buyers choose to contact the Seller's Representative directly. Under this arrangement the REALTOR® is working for the Seller and must do what is best for the Seller but may provide many services to the Buyer.
If the Seller and the Buyer have the same Sales Representative, this is Multiple Representation and the REALTOR® is working for both the Seller and the Buyer.
Code of Ethics
REALTORS believe it is important that the people they work with understand their relatonship. That's why disclosure is included in their self-imposed Code of Ethics, which is sdministered by the Real Estate Council of Ontario. The code requires REALTORS to disclose in writing the nature of the services they are providing and encourages REALTORS to obtain written acknowledgement of that disclosure. The Code also requires REALTORS to enter into a written agreement with any Sellers or Buyers they are representing. (Source: The Canadian Real Estate Association)
Should you want further clarrification or have any questions on Representation please Click Here to contact me by e-mail or phone me at your convenience at 1-888-877-5165.
Deborah Gilmore...Your Trusted Source For Anything Real Estate!
