Agency Disclosure

• Why Use a Realtor?
• Your Responsibilities as a Buyer or Seller
• Definitions
• The Agency Relationship
• Dual Agency
• When There is No Agency Relationship

Why Use a Realtor?

Whether you're selling or buying property, a real estate professional can provide you with invaluable services and information.

• Are educated about legal issues affecting real estate transactions;
• Are trained to negotiate the best prices and terms in the contract of purchase and sale;
• Provide objectivity in a potentially emotional situation;
• Are sources of information for current listings, market conditions; and
• Can recommend lenders and real estate evaluators.

Real estate transactions are among the largest financial investments that most people make. As a trained professional, I can help make the experience a pleasant and rewarding one.

Your Responsibilities as a Buyer or Seller

As a buyer or 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, accounts, home inspectors, contractors, engineers and surveyors.

Definitions

The Agent is the real estate company under which the individual salesperson who is representing you is licensed.

Realtor is often used interchangeably with Licensee, 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 Buyer is often referred to as the Purchaser.
• The Seller is often referred to as the Vendor.
• The Principal is someone who has engaged an Agent to act for and on his or her behalf to either buy or sell a home.

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. Undivided loyalty. The agent 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. The exercise of reasonable care and skill in performing all assigned duties.
5. The duty to account 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

Dual agency occurs when a real estate agent is representing both buyer and 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.

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 impartially;

b. The Agent will have a duty of disclosure to both the Buyer and the Seller except that;