Realtors believe it is important that the people they work with
understand their agency relationship. That's why agency disclosure is
included in a self-imposed Code of Ethics which is administered by the
Real Estate Council of Ontario.
Buyer's Agent:
- A real estate company acting as a "buyer's agent" must
do what is best for the buyer.
- A written contract, called a buyer agency agreement, establishes
buyer agency.
- Typically, buyers will be obliged to work exclusively with that company
for a period of time.
- Confidences a buyer shares with the buyer's agent must be kept comfidential.
- Although confidential information about the buyer cannot be disclosed, a seller working with a buyer's agent can expect to be treated fairly and honestly.
Dual Agent:
Occasionally a real estate company will be the agent of both the buyer and the seller. The buyer and seller must consent to this arrangement in their listing and buyer agency agreements. Under this "dual agency" arrangement, the company must do what is best for both the buyer and the seller.
Since the company's loyalty is divided between the buyer and the seller who have conflicting interests, it is absolutely essential that a dual agency 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.
Printable Agency Agreement 1.22Mb