Jeff Tsuji

 
 

 

AGENCY RELATIONSHIPS EXPLAINED
Engaging in any Real Estate transaction is one of the most significant decisions you will make in your lifetime and selecting a Realtor to represent your best interests every step of the way is absolutely crucial.  There are over 37,000 Realtors on The Toronto Real Estate Board and you want to work with an agent in the top 1%.  These agents work in the market every day and have extensive experience from which you will benefit from.
 
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.
A Realtor should be Knowledgeable, Reliable, Responsive, and Dedicated to seeing you through the process of searching for the right property and negotiating the terms of the Purchase and Sale Agreement.  You want your Realtor to listen to your specific needs and act on your behalf to create a seamless process which will save you time, money and frustration.
 
 
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®
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."
 
Click Here to review the Ontario Real Estate Associations Standard Working With A Realtor Brochure. (PDF.)
 
 
 
*There are many different services a Realtor can provide.  Prior to signing any documents, be sure you understand the difference in services that Realtors provide to someone as a Client and a Customer.
 

CLIENTS vs. CUSTOMERS

In the each of the fields below, I describe my responsibilities:

 

 

CLIENT

 

 

CUSTOMER

 

ACCESS TO MLS

Must provide the client with full access to all homes for sale on the market.

No legal obligation to provide listings.

ACCOUNTABILITY

Full accountability for all actions taken on behalf of client.

Limited accountability to the customer.

BUYER NEEDS

Obligated to pay full attention to the client’s needs.

No obligation to satisfy the customer needs, but must treat the customer with fairness

CLAUSES IN OFFER

Under legal obligation to insert clauses in the offer that protects and serve the interests of the Buyer.

No legal obligation to insert clauses in the offer that protects the customer. The customer must be treated with due care and fairness.

CONFIDENTIALITY

Buyer information is always kept from the seller.

Buyer information can be disclosed to the seller.

DISCLOSURE

Must disclose all known facts about the seller and the property (Good or Bad).

The agent has no such obligation to disclose facts about the seller or the property to the customer.

OBEDIENCE

Legally obligated to obey the instructions of the client.

Under NO legal obligation to obey the customer.

LOYALTY

Must be loyal.

Loyalty is to the Seller.

MARKET ANALYSIS

Legally obligated to present all sales statistics to ensure the Client does not pay more for the home than necessary.

Required to show statistics to support the seller's asking price.

NEGOTIATING STRATEGY

Legally obligated to provide strategies that are in the best interest of the Buyer

No obligation to the Customer. The agent has to provide strategies to help the seller.

SHOWINGS TO FIND A HOME

Unlimited.  Under legal obligation to show the client as many homes as possible until the client finds the right home.

No legal obligation to show all homes to the customer. The agent can show homes as he or she deems necessary.

 

 

Powered by Lone Wolf Real Estate Technologies (CMS6)