buyer and seller agency relationship

YOUR RELATIONSHIP WITH A REALTOR
Buying or selling real estate is probably the
most important and potentially rewarding financial
transaction you’ll make in your life. So
it is 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 will be with the
results.
REALTORS, Agents and real estate boards
need to collect, use and disclose some personal
information to help you sell or buy real
estate.
I acknowledge having received and read the
brochure Working With a Real Estate Agent. I
understand the various types of relationships
that may occur between myself and a
REALTOR.
I consent to the Boards, other real estate
boards, the Agent and the REALTOR collecting,
using and disclosing personal information
for the purposes (and to the recipients) described
in the brochure.
I further understand that I will be signing
additional documentation acknowledging the
type of agency that I receive and consenting to
the collection, use and disclosure of personal
information.
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 and promote the interests of
their principals as they would their own. Specifically,
the Agent has the following duties:
1)
the principal’s negotiating position at
all times, and disclose all known facts
which may affect or influence the
principal’s decision.
2)
principal.
3) An obligation to
the principal.
4) To
performing all assigned duties.
5) To
Undivided loyalty. The Agent must protectTo obey all lawful instructions of thekeep the confidences ofexercise reasonable care and skill inaccount for all money and 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 and seller can be represented by their
own Agents in a single transaction.
DUAL AGENCY
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:
a) The Agent will deal with the buyer and the
seller
b)
to both the buyer and the seller
except that:
impartially;The Agent will have a duty of disclosure
i) the Agent will not disclose that the
buyer is willing to pay a price or
agree to terms other than those contained
in the offer, or that the seller is
willing to accept a price or terms
other than those contained in the
listing;
ii) 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;
iii) The Agent will not disclose personal
information, not otherwise necessarily
disclosed in the transaction documentation,
about the Buyer or Seller
to the other party unless authorized
in writing.
c) The Agent will disclose to the buyer defects
about the physical condition of the
property known to the Agent.
Dual agency occurs when a real estate Agent
is representing both the buyer and the 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.
REALTOR REALTOR
Seller Buyer
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 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 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
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.
AGENCY
ACKNOWLEDGEMENT
REALTOR REALTOR
Seller Buyer
ACKNOWLEDGED BY:
AGENT (PRINT)
PER SALESPERSON’S SIGNATURE
DATED
, yr.
Agency acknowledgement clauses such as
the following will be used in the Contract of
Purchase and Sale:
The seller has an agency relationship with
(Agent) and
(Salesperson)
The buyer has an agency relationship with
(Agent) and
(Salesperson)
The buyer and the seller have consented to a
limited dual agency relationship with
(Agent)
(Salesperson)
and (Salesperson)
having signed a Limited Dual Agency Agreement
dated
___________________________,yr._________
Members of the public are aware that in most
cases properties offered for sale by members
of the real estate industry have a commission
or fee that the seller has agreed to pay to the
Listing Agent.
The Listing Agent traditionally shares this
commission/fee with the Cooperating Agent.
Commission and fee may vary.
NAME (PRINT)
SALESPERSON (PRINT)
SIGNATURE
WORKING
WITH A
REAL
ESTATE
AGENT
BRITISH COLUMBIA
REAL ESTATE
ASSOCIA
TION
AN EXPLANATION OF THE
RELATIONSHIP BETWEEN YOU
AND A REALTOR AND OF THE
COLLECTION, USE AND
DISCLOSURE OF
PERSONAL INFORMATION
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.
DEFINITIONS
The
which the individual salesperson is licensed.
Agent is the real estate company under
REALTOR
is often used interchangeably with
licencee, real estate agent or salesperson
and, in BC, is licensed under the Real Estate
Act. A REALTOR can use the term REALTOR
if he/she belongs to a local board or association
that enforces a strict Code of Ethics.
The
associations in whose jurisdiction the property
is located and/or of which the Agent or the
REALTOR is a member. They are associations
which assist REALTORS to market and sell
real estate. The Boards also provide ongoing
training for their members, enforce ethical
standards and help resolve disputes between
members and the public.
The
database of real estate listings and sales.
It is operated by the Boards in conjunction with
other real estate boards and the Canadian
Real Estate Association.
Boards are the real estate boards andMultiple Listing Service® is a computerized
Personal Information
information about you, including your name,
address, phone number, financial information
and may include information about your property
(such as listing and selling price, listing
term, etc.).
The
The
The
an Agent to act for and on his or her behalf
either to buy or sell real estate.
This pamphlet has been designed to explain
various types of agency relationships, the collection,
use and disclosure of personal information,
and to help you understand what it all
means. If you are still unclear about these
concepts, feel free to seek legal counsel.
Published by
means any personalbuyer is often referred to as the purchaser.seller is often referred to as the vendor.principal is someone who has engaged
PRIVACY
REALTORS, Agents and real estate boards
need to collect, use and disclose some personal
information to help you sell or buy real
estate. We respect your privacy and want to
ensure you understand how and why your
information is collected, used and disclosed in
a real estate transaction.
How is my personal information collected?
Most personal information will be collected
directly from you through the contracts and
other documents you fill out (e.g., Multiple
Listing Contract, Contract of Purchase and
Sale, seller’s Property Disclosure Statement)
and through discussions you have with your
REALTOR. Some information may be collected
from other sources such as government departments
and agencies (e.g., Land Title
Offices, BC Assessment), financial institutions
and mortgage brokers.
To whom may my personal information be
disclosed?
to (or may be accessible by) the Boards and
their staff and members, other real estate
boards and their staff and members, other
REALTORS and their clients, government departments
and agencies, financial institutions,
legal advisors, service providers, the British
Columbia Real Estate Association, the Real
Estate Council of British Columbia, the
Canadian Real Estate Association and members
of the public, for the purposes described
on the next panel.
Not all of your information will be accessible to
each of the above-mentioned entities. For
example, once the listing term has ended, the
general public will not have access to your
information unless it is otherwise available
through public registries (e.g., BC Assessment,
Land Title Offices).
Your information may be disclosed
Why is my personal information collected,
used and disclosed?
be collected, used and disclosed for some or
all of the following purposes:
a) To allow members of real estate boards
(including REALTORS and appraisers) to
appraise your property.
b) To list your property with the Multiple
Listing Service® in order to market your
property.
c) To market your property for sale through
any other media (both print and electronic).
d) To help you locate a suitable property to
purchase.
e) To facilitate the purchase and sale transaction
(by cooperating with financial institutions,
legal advisors and government
departments and agencies).
f) To allow the Boards and other real estate
boards and their members (including
REALTORS and appraisers) to compile
current and historical statistics on sales
and property prices, and to conduct comparative
market analyses. Information
about your property will be retained in the
Multiple Listing Service® for these purposes
after your property has sold or your
listing has expired (if you are a seller) and
after you have purchased your property (if
you are a buyer).
g) To enforce codes of professional conduct
and ethics for members of real estate
boards (by cooperating with real estate
boards, the British Columbia Real Estate
Association, the Real Estate Council of
British Columbia, The Canadian Real
Estate Association and other regulatory
bodies).
h) To comply with legal requirements and to
act pursuant to legal authorizations.
The above-mentioned collections, uses and
disclosures are a necessary part of your relationship
with your REALTOR.
Your information may
Will my personal information be collected,
used and disclosed for any other purposes?
Your information may also be collected,
used and disclosed for the following
additional purposes:
a) Your REALTOR may communicate with
you in future to determine whether you
require additional real estate services.
b) Your REALTOR may communicate with
you to provide information about other
products or services which may interest
you.
c) Other REALTORS may communicate with
you to determine whether you require
additional real estate services.
These additional purposes are optional. If you
do not want your personal information disclosed
or used for these purposes, please
contact the Board’s privacy officer. Contact
information for all real estate boards within BC
can be found at the British Columbia Real
Estate Association (BCREA) website:
www.bcrea.bc.ca
or toll free 1.877.361.3626.
or telephone 604.683.7702,YOUR RESPONSIBILITIES
AS A BUYER OR A SELLER
As a buyer or a seller, you should:
• 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.
PURPOSES FOR COLLECTING,
USING AND DISCLOSING
PERSONAL INFORMATION
PURPOSES FOR COLLECTING,
USING AND DISCLOSING
PERSONAL INFORMATION
BC1005 Copyright BCREA REV. DEC/03
Printed in Canada