> Buyer Agency (hiring your own
agent)
Agency disclosure means that a real estate licensee, when acting
as an agent for one party to a transaction,, must let the other
party know who the agent represents in that transaction. For example,
a sub-agent selling sales person (such as is found in our ordinary
co-brokerage situation) would be required to let the buyer know
that the salesperson represents the seller.
The buyer should understand that the selling agent is likely representing
the seller unless the buyer has executed a buyer agency contract.
The buyer should not make confidential disclosures and should
not rely on the selling agent in a way that would strain the sub-agency
relationship that may exist. The agent with whom you are working
is obligated to discuss this with you at your first meaningful
meeting. The agent is required to disclose which party they represent.
The specific language that must be used to explain the agency
relationship should be given to you in writing. You will be asked
to sign acknowledgment of receipt.
Information from the customer may be treated as confidential
by the seller's agent when so noted on the disclosure form. Confidential
information may include divorce, bankruptcy, foreclosure, motivation
to buy/sell, employment situation, etc. Be aware that, if a situation
comes to a licensee's attention where the seller or buyer cannot
perform the offer to purchase, this becomes an adverse material
fact which must be disclosed to the other party. The duty to disclose
adverse material facts overrides the duty of confidentiality.
Can the buyer get good service from a seller's agent, knowing
they work in the seller's best interest?
Colin and Pat treat every buyer with respect. Ontario regulations
require fair treatment and full disclosure to all parties, subject
to statements of confidentiality as provided within the agency
disclosure. It is important that you choose one professional
to help you find what you are looking for. By sharing your motives
and your criteria, your agent of choice can guide you through
the offer process, then guide you through the inspection, the
loan process and the closing. Choose an experienced professional.
Put their expertise to work for you. A good REALTOR¢ç
can help smooth the bumps you may encounter on the road to closing.
At the Re/Max office, a copy of the disclosure form is included
with the information sheets that are distributed and the agency
relationship is discussed early into the initial meeting.
> Agency Relationship
Whether you're looking for a new home or are getting ready to
sell your present home, today's fast changing real estate market
offers many choices for working with a real estate agent and his/her
company to achieve your goals.
Generally, an "agent" is someone who represents the
interest of one person in dealing with others. An agency relationship
in real estate is an arrangement between you, your real estate
company and your agent to assist you in buying or selling a home.In
the past, real estate agents were required to strictly represent
the seller. With the ever increasing complexity of the real estate
market today, many buyers and sellers are opting for specialized
services without compromising their personal goals.
Fact:
- 57% of buyers believe their agent represented them in their
transaction.
- 74% of sellers believed the agent who worked with the buyers
represented the buyers (instead of the seller)
Your Agent's Fiduciary Duties
- When acting on your behalf, your agent :
Must be loyal at all times and act in your best interests
- Obey and fulfill all your lawful instructions
- Is obligated to safeguard your confidences (i.e. urgency
to buy or sell)
- Needs to exercise reasonable care and diligence in answering
any questions about your purchase or sale
- Accountable for handling all paperwork and funds promptly
and presenting offers in a timely manner
- Other duties as specifically outlined in the listing contract
or buyer's agency contract
> Seller's Agency (Selling a Home)
When you list your home for sale you employ the real estate company
through your agent as a seller's representative. An agent can
provide valuable services to a buyer, but all agents and subagents
involved in the transaction work on behalf of, and in the best
interest of, the seller. This is the most traditional arrangement
in real estate brokerage.
Seller Contract Requirements:
- Work to be performed
- Duration of contract
- Condition of fees
> Seller's Agency (Buying a Home)
Can the buyer get good service from a seller's agent, knowing
they work in the seller's best interest?
Have you ever bought a car, a TV set, a major appliance, a business
suit or a pair of shoes? The sales people who assisted you were
agents of the seller and working in the seller's best interest.
You knew that. You, however, put confidence in the salesperson's
knowledge of the product. You looked to that agent for expert
advice as you shopped and moved toward a buying decision.
When shopping for real estate the seller has contracted with
an agent (along with other sub-agents), for a service. The seller
expects the agent to market their home properly and to provide
all information necessary to assist the buyer in reaching a buying
decision. That includes, not only information, on the property.
The selling agent, to be effective, must also be able to provide
enough financing information, inspection information and comparable
sale information to be able to guide the buyer and the seller
to a mutually acceptable closing.
Unlike the lawyer-client relationship, which is, by design, adversarial;
the agent-customer and the agent-client relationship both require
that the REALTOR¢ç performing the service be honest
and fair dealing with all parties. An agent, whether for a buyer
or a seller, is expected, by law, to disclose all information
that is significant to a transaction. The days of "caveat-emptor"
are long gone. "Buyer Beware" is an archaic term. An
unhappy buyer leads to an unhappy seller. Whether the agent is
a buyer's agent or a seller's agent, fairness to all is a requirement.
> Buyer's Agency (Buying a home)
This agency relationship exists when the agent represents the
buyer exclusively in the real estate transaction. The agent works
on behalf of, and in the best interest of, the buyer. This concept
may seem new, yet it has been in existence for many years.
Buyer Contract Requirements:
- Duties to both parties
- Duration of contract
- Fees (what condition fees will be earned, who pays and when)
- Other duties as specifically outlined in the listing contract
or buyer's agency contract.
> Dual Agency
An agency relationship in which the broker represents both the
buyer and the seller. This includes an in-house sale, when both
the buyer and the seller have contracted with the same company,
even if they are using two different salespeople. Both parties
must agree prior to any negotiation or acceptance of a purchase
agreement and are required to meet disclosure laws. The agent
or agents must be impartial to both parties and cannot disclose
any confidential information to either the seller or the buyer.
The specific duties owed to the buyer and the seller depend upon
the contract that is arranged, however, some contract requirements
may be:
- Disclosure of any material defects in the property
- Fair treatment of each party
- Disclosure of the qualifications of the buyer to buy and the
seller to sell
- Assistance in property inspections
- Diligence in facilitating the sale of property after the purchase
agreement or sales contract has been accepted.
