When working with a REALTOR, it is important to understand who the REALTOR works for. To whom is the REALTOR legally obligated? REALTORS are obliged to disclose in writing to all parties their agency position in a transaction.
Honesty and Integrity
Most real estate professionals in our province are members of the Ontario Real Estate Association (OREA) and only members of OREA can call themselves REALTORS.
When you work with a REALTOR, you can expect not only strict adherence to provincial laws, but also adherence to a Code of Ethics. And that code is very important to you because it assures you will receive the highest level of service, honesty and integrity.
Highest Professional Standards
Before receiving a real estate licence, candidates must successfully complete an extensive course of study developed by OREA on behalf of the Ontario Government. And that is only the beginning: in the two years after receiving their licence,the new professionals are required to successfully complete three additional courses as part of their articling with an experienced broker.
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 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.
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.
2. Purchaser'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.
3. 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.
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 your REALTOR for more information