Sherry
and Tammy are both members of the Ontario Real Estate Association
(OREA) and in Ontario only members of OREA can call themselves
REALTOR®s.
When working with a REALTOR®, it is important to understand who the REALTOR® works for. To whom is the REALTOR® legally obligated? REALTOR®s are obliged to disclose in writing to all parties their agency position in a transaction.
Honesty and Integrity
When you work with a REALTOR®, 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.
Highest Professional Standards
Before receiving a real estate license, candidates must successfully complete an extensive course of study developed by OREA on behalf of the Ontario Government. And that is only the beginning: in the two years after receiving their license, the new professionals are required to successfully complete three additional courses as part of their articling with an experienced broker.
REALTORS® are governed by the legal concept of "agency." An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person.
A REALTOR® may be your agent - if you have clearly established an agency relationship with that REALTOR. But often, you may assume such an obligation exists when it does not.
REALTORS® believe it is important that the people they work with understand when an agency relationship exists and when it does not - and to understand what that means.
In real estate, there are 3 different possible forms of agency relationships:
- Seller's Agency
- Buyer's Agency
- Dual Agency
Sellers Agent
When a real estate company is a "seller's agent," it must do what is best for the seller of a property.
A seller's agent must tell the seller anything known about a buyer. For instance, if a seller's agent knows a buyer is willing to offer more for a property, that information must be shared with the seller. Confidences a seller shares with a seller's agent must be kept confidential.
A buyer 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.
Buyer's Agent
A real estate company acting as a "buyer's agent" must do what is best for the buyer. A written contract establishes buyer agency. It also explains services the REALTOR® will provide, spells out who will pay and specifies what obligations a buyer may have. Typically, buyers will be obliged to work exclusively with that REALTOR® for a period of time.
A REALTOR® working for a buyer will keep information about the buyer confidential from the seller.
Multiple
Representation or Dual Agency
Occasionally a real estate company and its sales representative will be the agent of both the buyer and seller. Under this "dual agency" arrangement, the REALTOR® must do what is best for both the seller and buyer and strict procedures must be followed. A REALTOR® can be a dual agent only if both the buyer and seller agree in writing. Ask your REALTOR® for more specific details.
WHO PAYS?
Usually, the REALTOR® will be paid from the proceeds of the sale. The listing agreement states the REALTOR®'s fee.
Buyers & Sellers will ALWAYS be told - in writing - who a REALTOR® is working for.
Ask your REALTOR® for more information
*This information was taken from a series of brochures prepared by the Ontario Real Estate Association
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