Buyer Agency (hiring your own agent)

Agency disclosure means that a real estate licensee, when acting as an agent for one party to a transaction,, must let the other party know who the agent represents in that transaction. For example, a sub-agent selling sales person (such as is found in our ordinary co-brokerage situation) would be required to let the buyer know that the salesperson represents the seller.
The buyer should understand that the selling agent is likely representing the seller unless the buyer has executed a buyer agency contract. The buyer should not make confidential disclosures and should not rely on the selling agent in a way that would strain the sub-agency relationship that may exist. The agent with whom you are working is obligated to discuss this with you at your first meaningful meeting. The agent is required to disclose which party they represent.

The specific language that must be used to explain the agency relationship should be given to you in writing. You will be asked to sign acknowledgment of receipt.

Information from the customer may be treated as confidential by the seller's agent when so noted on the disclosure form. Confidential information may include divorce, bankruptcy, foreclosure, motivation to buy/sell, employment situation, etc. Be aware that, if a situation comes to a licensee's attention where the seller or buyer cannot perform the offer to purchase, this becomes an adverse material fact which must be disclosed to the other party. The duty to disclose adverse material facts overrides the duty of confidentiality.

Can the buyer get good service from a seller's agent, knowing they work in the seller's best interest?

Colin and Pat treat every buyer with respect. Ontario regulations require fair treatment and full disclosure to all parties, subject to statements of confidentiality as provided within the agency disclosure. It is important that you choose one professional to help you find what you are looking for. By sharing your motives and your criteria, your agent of choice can guide you through the offer process, then guide you through the inspection, the loan process and the closing. Choose an experienced professional. Put their expertise to work for you. A good REALTOR can help smooth the bumps you may encounter on the road to closing. At the Re/Max office, a copy of the disclosure form is included with the information sheets that are distributed and the agency relationship is discussed early into the initial meeting.

Agency Relationship
Whether you're looking for a new home or are getting ready to sell your present home, today's fast changing real estate market offers many choices for working with a real estate agent and his/her company to achieve your goals.

Generally, an "agent" is someone who represents the interest of one person in dealing with others. An agency relationship in real estate is an arrangement between you, your real estate company and your agent to assist you in buying or selling a home. In the past, real estate agents were required to strictly represent the seller. With the ever increasing complexity of the real estate market today, many buyers and sellers are opting for specialized services without compromising their personal goals.

Fact:

• 57% of buyers believe their agent represented them in their transaction.
• 74% of sellers believed the agent who worked with the buyers represented the buyers (instead of the seller)

Your Agent's Fiduciary Duties

• When acting on your behalf, your agent :
  Must be loyal at all times and act in your best interests
• Obey and fulfill all your lawful instructions
• Is obligated to safeguard your confidences (i.e. urgency to buy or sell)
• Needs to exercise reasonable care and diligence in answering any questions about your purchase or sale
• Accountable for handling all paperwork and funds promptly and presenting offers in a timely manner
• Other duties as specifically outlined in the listing contract or buyer's agency contract

Seller's Agency (Selling a Home)
When you list your home for sale you employ the real estate company through your agent as a seller's representative. An agent can provide valuable services to a buyer, but all agents and subagents involved in the transaction work on behalf of, and in the best interest of, the seller. This is the most traditional arrangement in real estate brokerage.

Seller Contract Requirements:

• Work to be performed
• Duration of contract
• Condition of fees

Seller's Agency (Buying a Home)
Can the buyer get good service from a seller's agent, knowing they work in the seller's best interest?
Have you ever bought a car, a TV set, a major appliance, a business suit or a pair of shoes? The sales people who assisted you were agents of the seller and working in the seller's best interest. You knew that. You, however, put confidence in the salesperson's knowledge of the product. You looked to that agent for expert advice as you shopped and moved toward a buying decision.

When shopping for real estate the seller has contracted with an agent (along with other sub-agents), for a service. The seller expects the agent to market their home properly and to provide all information necessary to assist the buyer in reaching a buying decision. That includes, not only information, on the property. The selling agent, to be effective, must also be able to provide enough financing information, inspection information and comparable sale information to be able to guide the buyer and the seller to a mutually acceptable closing.

Unlike the lawyer-client relationship, which is, by design, adversarial; the agent-customer and the agent-client relationship both require that the REALTOR, performing the service be honest and fair dealing with all parties. An agent, whether for a buyer or a seller, is expected, by law, to disclose all information that is significant to a transaction. The days of "caveat-emptor" are long gone. "Buyer Beware" is an archaic term. An unhappy buyer leads to an unhappy seller. Whether the agent is a buyer's agent or a seller's agent, fairness to all is a requirement.

Buyer's Agency (Buying a home)
This agency relationship exists when the agent represents the buyer exclusively in the real estate transaction. The agent works on behalf of, and in the best interest of, the buyer. This concept may seem new, yet it has been in existence for many years.

Buyer Contract Requirements:

• Duties to both parties
• Duration of contract
• Fees (what condition fees will be earned, who pays and when)
• Other duties as specifically outlined in the listing contract or buyer's agency contract.

Dual Agency
An agency relationship in which the broker represents both the buyer and the seller. This includes an in-house sale, when both the buyer and the seller have contracted with the same company, even if they are using two different salespeople. Both parties must agree prior to any negotiation or acceptance of a purchase agreement and are required to meet disclosure laws. The agent or agents must be impartial to both parties and cannot disclose any confidential information to either the seller or the buyer. The specific duties owed to the buyer and the seller, depend upon the contract that is arranged, however, some contract requirements may be:

• Disclosure of any material defects in the property
• Fair treatment of each party
• Disclosure of the qualifications of the buyer to buy and the seller to sell
• Assistance in property inspections
• Diligence in facilitating the sale of property after the purchase agreement or sales contract has been accepted  Compliments of Pat & Colin
  Remax Chay Realty Inc. 705-722-7100