Buying or selling a home may be the most important financial transaction you'll ever make. So it's a good idea to take a moment and consider the kind of relationship you will be entering into with your Realtor.
Realtors work within a legal relationship called agency. The agency relationship is established through a contract between you, the client, and your agent, the company under which the Realtor is licensed. Most Realtors use a blue brochure titled Working with a Realtor to disclose the nature of the agency relationship with their client.
A Realtor can act for a seller or a buyer, or to a limited degree, both. Whomever they represent, Realtors have a legal obligation to uphold the integrity of their clients, while protecting and promoting their interests.
AGENCY VS. NO AGENCY
You may also choose to use the services of a Realtor without having any kind of agency relationship. This might occur when you contact or are being shown a property by the seller's Designated Agent who will treat you as their customer rather than their client.
In this situation, the Realtor is not permitted to recommend or suggest a price, negotiate on your behalf, inform you of their client's bottom line price point or disclose any confidential information about their client unless otherwise authorized by the client (or if in special circumstances the law requires it.) However the Realtor can provide you with other services, such as:
-Explaining real estate terms, practices and forms.
-Assist in screening or viewing properties.
-Prepare and present all offers and counter-offers at your direction.
-Inform you of lenders and their policies.
-Identify and estimate costs involved in a transaction.
DESIGNATED AGENCY
Designated agency is when a brokerage designates a Realtor to work solely on your behalf in a real estate transaction. The Designated Agent commits to:
Protect your negotiating position at all times.
Provide undivided loyalty and keep your confidences.
Maintain the confidentiality of your information.
Adhere to a strict Code of Ethics and a high standard of practice.
Exercise reasonable care and skill in performing all assigned duties.
Be accountable for all money and property placed in our brokerage’s hands while acting for you.
Designated Seller’s Agent
As a seller, my professional marketing skills and networking connections can help in obtaining the maximum market value for your home. During negotiations, you can rely on me to represent your interests and provide advice on price, possession and closing date.
In order for your Realtor to list your property for sale on the Multiple Listing Service® (MLS®), the Real Estate Board of Greater Vancouver requires completion of a listing agreement. By signing the listing agreement with you, your Realtor has committed to uphold the obligations mentioned above. The listing agreement also states the amount of compensation that the seller will pay the Realtor.
Buyer’s Agent
The buyer can benefit from agent representation, too. The Realtor’s expert knowledge of the neighbourhood, future development plans, taxes, zoning, transportation, schools, and community services will help you select the property that meets your needs. By combining personal knowledge with research, your Realtor will be able to provide a comparison of similar properties and market statistics. Your Realtor will also advise you on financing options and make recommendations of other professionals needed to complete the sale.
