legal implications so I like to give it a higher profile in my discussions. There is a small brochure entitled ‘Working with a REALTOR®’ which describes these relationships. I will give you an abbreviated and concise version of its contents.
What is Agency?
The agency relationship is between the principal (you) and the Brokerage (the real estate company). The REALTOR® who represents you is licensed under the Brokerage. The practical application is that I, as a licensed REALTOR® working under my Brokerage, have the authority to represent you in the real estate transaction when dealing with others.
When representing you, my fiduciary duties to you, under the Brokerage, are to look after your interests as if they were my own. This means: -
I have to disclose everything I know about the property and situation that may affect or influence your decision regarding the real estate transaction.
My duty includes protecting your negotiating position by not disclosing anything that would jeopardize it. I owe you undivided loyalty.
I must obey all your instructions as long as they are lawful.
I am not at liberty to disclose any of your confidences and must keep them confidential.
All my assigned duties must be exercised with reasonable care and skill.
I am accountable for all money and property that is placed with my Brokerage while acting on your behalf.
Dual Agency
Since, the agency relationship is between you and the Brokerage, it is possible for the property which interests you to be listed with the same Brokerage. In that instance, the Brokerage is representing both you and the seller and this then is known as dual agency.
Under these circumstances, the Brokerage cannot adhere to the original agency commitments towards both parties. This relationship will then have to be limited and both parties will have to agree to these limitations, in writing, prior to making an offer or receiving an offer.
Under limited dual agency, the limitations are as follows:-
The REALTORS®, licensed under this Brokerage, will deal with buyers and sellers impartially. This means that they cannot help you negotiate price. They become facilitators of the transaction and not negotiators.
REALTORS® continue to have duties of disclosure except for three areas: No disclosures will be made regarding-
*Price and terms outside those contained within the offer
*The motivations to buy or sell
*Personal information unless it is part of the offer or if permission is received in writing.
REALTORS® must disclose all known physical defects of the property to the buyer.
No Agency Relationship
There is also the option of using REALTOR® services without having an agency relationship. But even under these circumstances, the REALTOR® still has a legal and ethical commitment to you. This includes:-
Answering all your questions accurately and honestly
Explaining terms and forms used
Showing you properties
Preparing offer and counter-offers according to your direction
Presenting offers promptly
It does exclude disclosing anything relating to price and anything personal about the REALTOR’S® principal.
Signatures
Once ‘agency’ has been explained and is understood, you are asked to sign a form. You are only signing that this has been explained to you and that you may be signing additional documentation relating to agency later in the process.
The ‘Working with a REALTOR®’ brochure also discusses the collection and use of your personal information. Such information is required by cooperating participants of the real estate process. Your signature will also apply to your understanding regarding the collection of such private information.
Individual Identification Information Record
This form may also be referred to as FINTRAC - The Financial Transactions and Report Analysis Centre of Canada.
Anti-money laundering and terrorist financing legislation has been in existence as of 2001. Since that time, real estate agents have been required to report any cash transactions of $10,000 or more as well as suspicious real estate transactions. In addition, as of June 2008, the Federal Government of Canada instituted a new federal money laundering and anti-terrorist financing regulation. This new regulation requires that real estate agents, financial institutions and other professionals covered by this legislation identify customers who conduct financial transactions. This includes buying and selling real estate as well as depositing funds.
After explaining this legislation, I have you complete the required form which includes your full legal name, current address, date of birth and occupation. I must then view the original identification document. The type of document together with an identification number and issuing jurisdiction and expiry date must be recorded. This information is to be kept for 5 years.
If the consumer is a Corporation, the real estate agent must have Articles of Incorporation and Authorization for Signing Authority.
There are slight variations in this process depending on the circumstances but the collection of such information is mandatory.
Your REALTOR® - for Buyer Vi Brown
Your REALTOR’S® Experience
If this were a book of fiction, you really wouldn’t need to know much about me. But I felt compelled to write this book on real estate because, in my experience, consumers are not really aware of the full process. They come to my office and are truly puzzled about the procedures involved in purchasing a home or how to begin the process of selling their home.
Real estate continues to increase in paper work and complexity and I would like to provide, at least, a basic road map through the process of buying and selling. As a REALTOR® and your guide through this process, you should know some of my background and the kind of real estate I have practiced over nearly 20 years.
REALTORS® are diverse individuals as in any profession. We must adhere to our professional code and standards but are otherwise free to practice our craft.
Throughout my years in real estate, I have certainly made many observations and formulated some specific views. I have chosen to limit some real
