Direct: 416-471-7919    -     Office: 416-489-3434    -    Fax: 416-489-5445

Agency Relationships

Sellers Relationship to Realtors

When working with a REALTOR®, it is important to understand who the REALTOR® works for, and to whom is the REALTOR® legally obligated. The Canadian Real Estate Association (CREA) requires REALTORS® to disclose Agency Relationship to a potential client at the earliest time possible.

Buyers Relationship to REALTORS®

A Buyer has a choice of two relationships with a REALTOR®. As a Client, a real estate company acting as a Buyers Agent must do what is best for the buyer. A written contract, called a Buyer Agency Agreement, establishes buyer agency. It also explains services the company will provide, establishes a fee arrangement for the REALTORs® services and specifies what obligations a buyer may have. Under such agency, a buyer will be obliged to work with that company for a period of time. In return, confidence a buyer shares with that company will be kept confidential. The REALTOR® is also required to offer professional advice, negotiate the best price for the buyer and provide the buyer with as much information required to make the right decision.

As a Customer the buyer can expect to be treated fairly and honestly. It is important for the buyer to realize that under such a relationship the REALTOR® is technically a sub-agent of the seller so that duties are owed to that seller. However, the buyer can expect the REALTOR® to disclose all pertinent information about a property, not to misrepresent any facts, and to honestly answer all questions about the property. Under such relationship with the buyer, the REALTOR® must not imply that they shall negotiate a price for the buyer as that would be a direct conflict with the REALTORs® sub-agency relationship with the seller and a violation of our rules and regulations.

Sellers Relationship to Realtors®

Sellers Relationship to REALTORS®

A real estate company must do what is best for the seller of a property. A written contract, called a Listing Agreement, establishes sellers agency. It also explains services the company will provide, establishes a fee arrangement for the REALTORs® services and specifies what obligations a seller must have.

Confidence a seller shares with their REALTOR® must be kept confidential from potential buyers and others. That REALTOR® must tell the seller anything known about the buyer. For instance, if the REALTOR® knows that a buyer is willing to offer more for a property, that information must be shared with the seller.

A seller must understand that a REALTOR® working with a buyer as a sub-agent is ultimately working with the sellers best interest in mind. A REALTOR® working with a buyer, as a Buyer Agent, is working for the buyers best interest mind, but may still be compensated by the seller through provisions made to the Listing Agent.

Multiple Representation

Occasionally a real estate company will be the agent for both the buyer and the seller. The buyer and seller must consent to this arrangement in their listing and buyer agency agreements. Under this multiple representation arrangement, the company must do what is best for both the buyer and seller.

Since the company's loyalty is divided between the buyer and seller who have conflicting interest, it is absolutely essential that a multiple representation relationship be established in a written agency agreement. This agreement specifically describes the rights and duties of everyone involved and any limitations to those rights and duties.

"The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license."

RE/MAX Hallmark Realty Ltd., Brokerage
Independently Owned & Operated.

9 OFFICES TO SERVE YOU BETTER!

 

Yonge Street Office

3434 Yonge Street

Toronto, Ontario, M4N 2M9

Tel: 416-489-3434  •  
Fax: 416-489-5445

College Street Office

968 College Street

Toronto, Ontario, M6H 1A5

Tel: 416-531-9680 •  
Fax: 416-531-0154

Riverdale Office

724 Pape Avenue

Toronto, Ontario, M4K 3S7

Tel: 416-462-1888  •  
Fax: 416-462-3135

Central Office

723 Mount Pleasant Road

Toronto, Ontario, M4S 2N4

Tel: 416-486-5588  •  
Fax: 416-486-0000

Beach Office

2237 Queen Street East

Toronto, Ontario, M4E 1G1

Tel: 416-699-9292  •  
Fax: 416-699-8576

Dorset Office

1066 Main Street, P. O Box 337

Dorset, Ontario, P0A 1E0

Tel: 705-766-2400  •  

Fax: 705-766-2800

Fairview Office

245 Fairview Mall Drive, Suite 108

Toronto, Ontario, M2J 4T1

Tel: 416-494-7653  •  

Fax: 416-494-0016

Richmond Hill Office

8 Weldrick Road West

Richmond Hill, Ontario, L4C 3T8

Tel: 905-883-4922  •  
Fax: 905-883-1521

Muskoka Office

113 Medora Street, Box 457

Port Carling, Ontario, P0B 1J0

Tel: 705-765-6801  •  
Fax: 705-765-6253

 

 

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