|
Working With a Realtor
The text below is taken from a pamphlet published by the
British Columbia Real Estate Association and is an explanation
of the relationship between you and a Realtor.
Your Relationship with a Realtor
Buying or selling a home is probably the most important and
potentially rewarding financial transaction you'll make in
your life. SO it's a good idea to take a moment and consider
the kind of relationship you might be entering into with a
Realtor. The more you know, the more satisfied you'll be with
the results.
The Agency Relationship
Realtors work within a legal relationship called agency. The
agency relationship exists between you, the principal, and
your agent, The Company under which the individual salesperson
who is representing you, is licensed. The essences of the
agency relationship is that the agent has the authority to
represent the principal in dealings with others.
Agents and their salespeople are legally obligated to protect
and promote the interests of their principals as they would
their own.
Specifically, the agent has the following duties:
| 1) |
Undivided Loyalty. The agent must protect the principal's
negotiating position at all times, and disclose all known
facts which may affect of influence the principal's decision.
|
| 2) |
To obey all lawful instructions of the principal. |
| 3) |
An obligation to keep the confidence of the principal.
|
| 4) |
The exercise of reasonable care and skill in performing
all assigned duties. |
| 5) |
The duty to account for all money and property
placed in an agent's hands while acting for the principal.
|
You can expect competent service from your agent, knowing
that the company is bound by ethics and the law to be honest
and thorough in representing a property listed for sale. Both
buyer and seller can be represented by their own agent in
a single transaction.
Dual Agency
Dual agency occurs when a real estate agent is representing
both buyer and seller in the same transaction. Since the agent
has promised a duty of confidentiality, loyalty and full disclosure
to both parties simultaneously, it is necessary to limit these
duties in this situation, if both parties consent.
If you find yourself involved in a dual agency relationship,
before making or receiving an offer, both you and the other
party will be asked to consent in writing, to this new limited
agency relationship.
This relationship involves the following limitations:
| a) |
The Agent will deal with the Buyer and the seller impartially;
|
| b) |
The Agent will have a duty of disclosure to both the
Buyer and the Seller except that;
| i) |
The Agent will not disclose that the Buyer is
willing to pay a price or agree to terms other that
those contained in the Offer, or that the Seller
is willing to accept a price or terms other than
those contained in the Listing; |
| ii) |
The Agent will not disclose the motivation of
the Buyer to buy or the Seller to sell unless authorized
by the Buyer or the Seller. |
| iii) |
The Agent will not disclose personal information
about either the Buyer or the Seller unless authorized
in writing; |
|
| c) |
The Agent will disclose to the Buyer defects about the
physical condition of the Property known to the Agent.
|
When there is no Agency Relationship
You may also choose to use the services of a REALTOR without
having any kind of agency relationship. This might occur,
for example, when you are being shown a property by the seller's
agent.
The REALTOR you choose to work with in this manner has a legal
and ethical duty to provide you with accurate, honest answers
to your questions and can provide all these services.
| - |
Explain real estate terms and practices. |
| - |
Provide and explain forms used. |
| - |
Assist you in screening and viewing properties. |
| - |
Inform you of lenders and their policies. |
| - |
Identify and estimate costs involved in a transaction.
|
| - |
Assist you in establishing your range of affordability.
|
| - |
Prepare offers of counter-offers at your discretion.
|
| - |
Present all offers promptly. |
A REALTOR who is not your agent cannot:
| - |
Recommend or suggest a price. |
| - |
Negotiate on your behalf. |
| - |
Inform you of his/her principal's top/bottom line |
| - |
Disclose any confidential information about his/her
principal unless otherwise authorized. |
You should not provide a REALTOR who is not your agent with
any information that you would not provide directly to his
or her principal.
Members of the public are aware that in most cases properties
offered for sale by members of the Real Estate Industry have
a commission or fee that the Seller has agreed to pay to the
Listing Agent.
The Listing Agent traditionally shares this commission/fee
with the cooperating agent.
Agency Acknowledgement
Agency acknowledgement clauses such as the following will
be used in the Contract of Purchase and Sale.
The Seller has an agency relationship with (Agent) and (Salesperson).
The Buyer has an agency relationship with (Agent) and (Salesperson).
The Buyer and Seller have consented to a limited agency relationship
with
(Agent) and (Salesperson) and (Salesperson)
having signed a Limited Dual Agency Agreement dated________,
year______.
Back to:
Guide to Selling
|
