Agency
Disclosure (Working with a Real Estate Agent) Agency
Disclosure (Working with a Real Estate Agent)An Explanation of the relationship between you and a REALTOR©
Buying or selling a home is one of the most important and potentially rewarding financial tranactions 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 essence 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 & 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 or influence the principal's decision.
2) To obey all lawful instructions of the principal.
3) An obligation to keep the confidences of the principal.
4) The exercising of reasonable care & skill in performing all assigned duties.
5) The duty to account for all money & 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 & seller can be represented by their own agents in a single transaction.
Limited Dual AgencyDual agency occurs when a real estate agent is representing both buyer & 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 & 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 & the Seller impartially.
b) The Agent will have a duty of disclosure to both the Buyer & the Seller except that:1) 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;
2) 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;
3) 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.
d) The Agent may disclose all comparable property information to the Seller and the Buyer at any time.
e) The Agent will not be required to disclose to the buyer or seller confidential informaton obtained through any other existing or former agency relationship.
No AgencyYou 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 & 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 or counter offers at your direction.
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.
Responsibilities of Buyers or SellersAs a buyer or seller you should:
Carefully read all documents and understand what you are signing.
If you need specialized advise, seek other professionals such as lawyers, notaries, accountants, home inspectors, contractors, engineers and surveyors.
DefinitionsThe Agent is the real estate company under which the individual salesperson is licensed.
A REALTOR in Nova Scotia, refers to a member of the Canadian Real Estate Association who is licensed under the Real Estate Broker's Licensing Act to trade in Real Estate.
The Buyer is often referred to as the Purchaser.
The Seller is often referred to as the Vendor.
The Principal is someone who has engaged an agent to act for and on his or her behalf either to buy or sell a home.
This Information has been designed to explain the various types of agency relationships and to help you understand what it all means.
REALTOR is a trademark describing members of the Canadian Real Estate Association who subscribe to a strict code of Ethics and a high standard of Professional Service.