Estate, there are different possible forms of Agency Relationship:
a Real Estate company is a “Seller’s Agent”, it must do what is best
the Seller of the property.
contract, called a Listing Agreement, establishes Seller Agency. It
explains services the company will provide, establishes a fee
for the REALTOR’s services and specifies what obligations a Seller may
Agent must tell the Seller anything known about the Buyer. For
if a Seller’s Agent knows a Buyer is willing to offer more for a
that information must be shared with the Seller.
a Seller shares with a Seller’s Agent must be kept confidential from
Buyers and others.
confidential information about the Seller cannot be discussed, a Buyer
working with a Seller’s Agent can expect fair and honest service from
Seller’s Agent and disclosure of pertinent information about the
Real Estate company acting as a “Buyer’s Agent” must do what is best
contact, called a Buyer Agency Agreement, establishes Buyer Agency. It
also explains the services the company will provide, establishes a fee
arrangement for the REALTOR’s services and specifies what obligations a
Buyer may have.
Buyers will be obligated to work exclusively with that company for a
a Buyer shares with the Buyer’s Agent must be kept confidential.
confidential information about the Buyer cannot be disclosed, a Seller
working with a Buyer’s Agent can expect to be treated fairly and
a Real Estate company will be the Agent for both the Buyer and the
The Buyer and Seller must consent to this arrangement in their listing
and Buyer Agency agreements. Under this “Dual Agency” arrangement, the
company must do what is best for both the Buyer and the Seller.
the companies loyalty is divided between the Buyer and the Seller who
conflicting interests, it is absolutely essential that a Dual Agency
be established in written agency agreement. This agreement specifically
describes the rights and duties of everyone involved and any
to those rights and duties.
working for you?
is important that you understand who the REALTOR is working for. For
both the Seller and the Buyer may have their own Agent which means they
each have a REALTOR who is working for them.
some Buyer’s choose to contact the Seller’s Agent directly. Under this
arrangement the REALTOR is working for the Seller, and must do what is
best for the Seller, but may provide many valuable services to the
working with a Buyer may even be a “Sub-Agent” of the Seller. Under
both the Listing Agent and the Co-operating Agent must do what is best
for the Seller even though the Sub-Agent may provide many valuable
to the Buyer.
the Seller and the Buyer have the same Agent, this is Dual Agency and
REALTOR is working for both the Seller and the Buyer.
believe it is important that people they work with understand their
relationship. That’s why Agency Disclosure is included in a self
Code of Ethics which is administered by the Real Estate Council of
The Code requires REALTORS to disclose in writing the nature of the
they are providing, and encourages REALTORS to obtain written
of that disclosure. The Code also requires REALTORS to enter into a
Agency Agreement with any Seller’s or Buyer’s they are representing.
Real Estate professionals in our province are members of the Ontario
Estate Association (OREA) and only members of OREA may call themselves
you work with a REALTOR, you can expect not only strict adherence to
laws, but also adherence to a Code of Ethics. And that Code is very
to you because it assures you will receive the highest level of
honesty and integrity.
receiving a Real Estate license, candidates must successfully complete
an extensive course of study developed by OREA on behalf of the Real
Council of Ontario. That is only the beginning: in the first two years
of practise, licensees are required to successfully complete three
courses as part of their articling with an experienced Broker. In
all licensees must continue to attend courses throughout their careers
in order to maintain their license.