You're trusting a REALTOR® with your most valuable possession: your home. REALTORS® take this responsibility very seriously. Here's what a REALTOR® promises:
1. Your REALTOR® is highly trained
2. Your REALTOR® is continuously trained
3. Your REALTOR® does everything by the book
4. Your REALTOR® is an ethical businessperson
5. Your dealings with a REALTOR® are insured
6. Opportunity for recourse
7. Your REALTOR® will grant you access to the exclusive Multiple Listing Service®
More information about the REALTOR® commitment, plus buying or selling your home, including step-by-step guides, checklists, expectations and questions for your REALTOR® and information about REALTORS®' extensive training and Code of Ethics, visit www.howrealtorshelp.ca
Real estate transactions are among the largest financial investments that most people make. A trained professional can help make the experience pleasant and rewarding. In fact, with the assistance of a real estate professional, property sells faster and for a higher price.
The following information is taken from the Working With a REALTOR® brochure, a standard tool used by all REALTORS® in BC that explains agency relationships and describes which personal information is collected, as well as how it's used and distributed. Click herefor a PDF version.
Your Responsibilities as a Buyer/Tenant or a Seller/Landlord
Carefully read all documents and understand what you are signing.
If you need special or expert advice, seek other professionals such as lawyers, notaries, accountants, home inspectors, contractors, engineers and surveyors
The brokerage is the real estate company under which the individual is licensed.
The licensee is the managing broker, associate broker and/or representative of a Brokerage.
REALTOR® is often used interchangeably with licensee or representative and, in BC, is licensed under the Real Estate Services Act. A Licensee can use the term REALTOR® if he/she belongs to a local real estate board or association that enforces a strict Code of Ethics.
The boards are the real estate boards and associations in whose jurisdiction the property is located and/or of which the brokerage or REALTOR® is a member. They are boards and associations which assist REALTORS® to market, sell or lease real estate. The boards also provide ongoing training for their members, enforce ethical standards and help resolve disputes between members and the public.
The Multiple Listing Service® (MLS®) is a computerized cooperative selling system of a real estate board for real estate listings and sales. MLS® System is operated by the boards in conjunction with other real estate boards and The Canadian Real Estate Association.
Personal information means any personal information about you, including your name, address, phone number, financial information and may include information about your property (such as listing and selling price, lease rate, listing term, etc.).
The buyer/tenant is often referred to as the purchaser.
The seller/landlord is often referred to as the vendor.
The principal is someone who has engaged a Brokerage to act for and on his or her behalf either to buy, sell or lease real estate.
The landlord is often referred to as the lessor.
The tenant is often referred to as the lessee.
A full glossary of real-estate related terms is availablehere.
The Agency Relationship
REALTORS® work within a legal relationship called agency. The agency relationship exists between you, the principal, and your brokerage, the company under which the individual representing you is licensed. The essence of the agency relationship is that the brokerage has the authority to represent the principal in dealings with others.
Brokerages and their licensees are legally obligated to protect and promote the interests of their principals as they would their own. Specifically, the brokerage has the following duties.
Undivided loyalty. The brokerage must protect the principal's negotiating position at all times, and disclose all known facts which may affect or influence the principal's decision.
To obey all lawful instructions of the principal.
An obligation to keep the confidences of the principal.
To exercise reasonable care and skill in performing all assigned duties.
To account for all money and property placed in a brokerage's hands while acting for the principal.
You can expect competent service from your brokerage, knowing that the company is bound by ethics and the law to be honest and thorough in representing a property listed for sale or lease. Both buyer/tenant and seller/landlord can be represented by their own brokerages in a single transaction.
Dual agency occurs when a brokerage is representing both buyer/tenant and seller/landlord in the same transaction. Since the brokerage 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 and the other party will be asked to consent, in writing, to this new limited agency relationship.
This relationship involves the following limitations:
The brokerage will deal with the buyer/tenant and the seller/landlord impartially;
The brokerage will have a duty of disclosure to both the buyer/tenant and the seller/landlord except that:
the brokerage will not disclose that the buyer/tenant is willing to pay a price or agree to terms other than those contained in the offer, or that the seller/landlord is willing to accept a price or terms other than those contained in the listing;
the brokerage will not disclose the motivation of the buyer/tenant to buy or or lease or the seller/landlord to sell or lease unless authorized by the buyer/tenant or the seller/landlord;
the brokerage will not disclose personal information, not otherwise necessarily disclosed in the transaction documentation, about the buyer/tenant or seller/landlord unless authorized in writing.
The brokerage will disclose to the buyer/tenant defects about the physical condition of the property known to the brokerage.
When There is No Agency Relationship
You 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/landlord's agent.
The REALTOR® you choose to work with in this manner has a legal and ethical duty to provide you with accurate, honest answers to your questions and may 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
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.
Members of the public are aware that, in most cases, properties offered for sale by members of the real estate profession have a commission or fee that the seller/landlord has agreed to pay to the listing brokerage. The listing brokerage traditionally shares this commission/fee with the cooperating brokerage. Commission and fee may vary.