| A REALTOR may be your agent - if you have
clearly established an agency relationship with that REALTOR.
But often, you may assume such an obligation exists when it
does not.
REALTORS believe it is important that the people they work
with understand when an agency relationship exists and when
it does not - and to understand what that means.
In real estate, there are 3 different possible forms of
agency relationships: Vendor's Agency, Purchaser's Agency
& Dual Agency.
Seller’s Agent
When a real estate company is a "vendor's agent,"
it must do what is best for the vendor of a property.
A vendor's agent must tell the vendor anything known about
a purchaser. For instance, if a vendor's agent knows a purchaser
is willing to offer more for a property, that information
must be shared with the vendor. Confidences a vendor shares
with a vendor's agent must be kept confidential.
A purchaser can expect fair service and disclosure of pertinent
information about a property. Nothing will be misrepresented
about a property. All questions will be answered honestly.
Buyer’s Agent
A real estate company acting as a "purchaser's agent"
must do what is best for the purchaser. A written contract
establishes purchaser agency. It also explains services the
REALTOR will provide, spells out who will pay and specifies
what obligations a purchaser may have. Typically, purchasers
will be obliged to work exclusively with that REALTOR for
a period of time.
A REALTOR working for a purchaser will keep information about
the purchaser confidential from the vendor.
Dual Agent
Occasionally a real estate company and its sales representative
will be the agent of both the purchaser and vendor. Under
this "dual agency" arrangement, the REALTOR must
do what is best for both the vendor and purchaser and strict
procedures must be followed. A REALTOR can be a dual agent
only if both the purchaser and vendor agree in writing. Ask
your REALTOR for more specific details.
WHO PAYS?
Usually, the REALTOR will be paid from the proceeds of the
sale. The listing agreement states the Realtor’s fee.
Purchasers & Vendors will ALWAYS be told - in writing
- who a REALTOR is working for. Ask Paul for more information.
This information was taken from a series of brochures prepared
by the Ontario Real Estate Association.
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