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 who is 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:
1) 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.
2) To obey all lawful instructions of the principal.
3) An obligation to keep the confidences of the principal.
4) To exercise reasonable care and skill in performing all assigned duties.
5) 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 In British Columbia, Real Estate Brokers and Realtors are
required to disclose the type
of working relationship they have with the buyers and sellers in a real
Seller’s Agency - often referred to as Listing Agent
Seller's REALTOR® acts solely on behalf of the Seller and owes duties to
them which include loyalty, fidelity. The Agent will
negotiate on behalf and act as an advocate for the Seller. They must
disclose to buyers all adverse material facts about the property known
by the Agent.
The Agent and the Seller enter into a written Agreement which sets out the duties and obligations of both parties.
Limited Dual Agent - Agent represents both the Buyer & Seller in the same transaction.
A REALTOR® can legally represent both the Buyer and the Seller in the same
transaction, but only with the knowledge and consent of both parties.
The Agent can not, without written authorization, disclose to the other
party as to what the Seller or Buyer will accept ( price, terms, personal information or motivation ).
Before presentation of an Offer, both parties must sign a written
Limited Dual Agency Disclosure Agreement. The Agent is obligated at all
times to deal honestly and fairly with all parties involved.
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/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.