Let's Talk About Agency and the Seller

In real estate, there are different possible forms of agency relationship.  A salesperson has a very defined responsibility to that Vendor when the Vendor and the agent sign a listing contract to sell the Vendor's home.

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. 
 

Let's Talk About Agency and the Buyer

In real estate, there are different possible forms of agency relationship.  A salesperson has a very defined responsibility to that Purchaser if the Purchaser chooses the agent to represent them.

"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.

"Sub Agency"
Often, a purchaser will work with one REALTOR® and a vendor will work with another. It may appear that the REALTOR® working with the purchaser is working for that purchaser, in an agency relationship. That is not necessarily the case.  The REALTOR® working with a purchaser may be a "sub-agent" of the vendor. In this case, the REALTOR® is actually a vendor's agent. While a vendor's agent can provide many valuable services to a purchaser, he or she must do what is best for the vendor.  If a written contract exists with a purchaser, a REALTOR® can be a purchaser's agent. 

"Dual Agency"
Occasionally a real estate company will be the agent of both the purchaser and vendor. "Dual Agency" arises if a buyer client becomes interested in a seller client's property. 

Description of Agent's Role - Because the Agent is acting for both Seller and Buyer in this transaction, the Agent shall make every reasonable effort to remain impartial to Seller and Buyer.  Seller and Buyer acknowledge that prior to the creation of the Dual Agency, the Agent acted as the exclusive agent of Buyer.  In those separate roles, the Agent may have obtained information which, if disclosed, could harm the bargaining position of the party providing such information to the Agent.  However, this agreement shall not prevent the Agent from disclosing to Buyer any known material defects in the property in the property or any other matter that must be disclosed by law and/or regulation.  The Agent agrees not to disclose (a) to Buyer information about what price Seller will accept other than the listing price, or (b) to Seller information about what price Buyer will pay other than any written offered price.

Description of Seller's and Buyer's Role - Because of the Agent's Dual Agency relationship, Seller and Buyer understand that they have the responsibility of making their own decisions as to what terms are to be included in any Agreement of Purchase and Sale between them.  Seller and Buyer also acknowledge that they are aware of the implication of the Agent's Dual Agency role including the limitation on the Agent's ability to represent Seller or Buyer or Buyer exclusively.  Seller and Buyer have determined that the benefits of entering into a transaction between them with the Agent acting as agent for both of them outweigh such implications.  Seller and Buyer understand that they may each seek independent legal counsel in order to assist with any matter relating to an Agreement of Purchase and Sale or to the transaction which is the subject matter of an Agreement of Purchase and Sale. 

Purchasers and Vendors will always be told - in writing - who a REALTOR® is working for.
 

Who Pays?
Usually, the REALTOR® will be paid from the proceeds of the sale. The listing agreement states the REALTOR®'s fee. 

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 REALTOR®. 

When you work with Bev Thompson (MVA-Residential, ABR, RRS), 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.