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REPRESENTATION... THE DIFFERENCES

By
Real Estate Sales Representative with BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE

ONTARIO REAL ESTATE ASSOCIATION (OREA)

Explaining Possible Forms of Agency Relationship

In Ontario, we are mandated to explain to clients the potential relationship they could enter into with their agent.  This form must be signed by the client and kept in our files, and a copy for the client.  This ensures they understand the different types of relationships between agent and client.

 

Representation
When a real estate company is a “seller’s agent,” it must do what is best for the seller of a property. A written contract, called a listing agreement, establishes seller agency. It also explains services the company will provide, establishes a fee arrangement for the Realtor’s services and specifies what obligations a seller may have.

A seller’s agent must tell the seller anything known about a buyer. For instance, if a seller’s agent knows a buyer is willing to offer more for a property, that information must be shared with the seller. Confidences a seller shares with a seller’s agent 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 agent can expect fair and honest service from the seller’s agent and disclosure of pertinent information about the property.

Buyer Representation

A real estate company acting as a “buyer’s agent” must do what is best forthe buyer. A written contract, called a buyer agency agreement, establishes buyer agency. It also explains services the company will provide, establishes a fee arrangement for the Realtor’s services and specifies what obligations a buyer may have. Typically, buyers will be obliged to work exclusively with that
company for a period of time. Confidences a buyer shares with the buyer’s agent must be kept confidential. Although confidential information about the buyer cannot be disclosed, a seller working with a buyer’s agent can expect to be treated fairly and honestly.

Multiple Represenation
Occasionally a real estate company will be the agent of both the buyer and the seller. 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. Since the company’s loyalty is divided between the buyer and the seller who have conflicting interests, it is absolutely essential that a dual agency relationship be established in a written agency agreement. This agreement specifically describes the rights and duties of everyone involved and any limitations to those rights and duties.

Do You Know 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 agent which means theyeach have a Realtor who is working for them. Or, some buyers 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 buyer.

A Realtor working with a buyer may even be a “sub-agent” of the seller. Under sub-agency, both the listing agent and the cooperating agent must do what is best for the seller even though the sub-agent may provide many valuable services to the buyer. If the seller and the buyer have the same agent, this is dual agency 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 agency relationship. That’s why agency disclosure is included in a self-imposed Code of Ethics which is administered 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 ack-nowledgement of that disclosure. The Code also requires Realtors to enter into a written agency agreement with any sellers or buyers they are representing.

Realtors are governed by the legal concept of “agency.” An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person. A real estate company 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 understand what it means.

I live and work in STREETSVILLE.  Are you considering buying or selling, or know anyone who is?  Please call me at (416) 717-6331.  I love referrals!

www.gloriavalvasori.com                gvalvasori@rogers.com

Your STREETSVILLE Real Estate Agent – dedicated to providing outstanding client service.

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Mississauga and Streetsville Real Estate


When you choose me to handle your real estate needs, you choose a real estate professional who cares about you and your family, who listens to your needs and who will put your interests first and foremost. I will work together with you, protecting your interests, to achieve your objectives.

I have been uniting families and homes for more than 31 years.. Let me put my 31+ years of knowledge and experience to work for you when selling or buying your next home.

 

Proud recipient of the Platinum award for outstanding serivce with a rating of 100% voted by my clients!!

A great experience starts with a great agent !

Helping You Make The Right Move since 1987. 

Call me at (905) 896-4622 or direct at (416) 717-6331

 www.mississaugarealestateonline.com    gvalvasori@gmail.com            

              

 

No part of this publication, may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, or electronic methods, without the prior written permission of the publisher.  Copyright © 2018  Gloria Valvasori, all rights reserved.

 

Comments (3)

Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Speak with (905) 896-4622 Real Estate Sales Representative with Better Homes and Gardens Real Estate Signature Service Gloria Valvasori, ASA via Streetsville, ON.

Jan 26, 2017 07:25 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

WI Just overhauled some of the docs to make it more straight forward

Jan 26, 2017 07:34 AM
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

There is so much paperwork involved now.. it really boggles us down... 

Jan 26, 2017 07:39 AM