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.
Seller's Agent:
- When a real estate company is a "seller's agent," it must
do what is best for the seller of a property.
- A written contract, called a listing agreement, establishes seller
agency.
- A seller's agent must tell the seller anything known about the buyer.
- Confidences a seller shares with the seller's agent must be kept
comfidential from potential buyers and others.
- Although confidential information about the seller cannot be disclosed, a buyer working with a seller's agent can expect fair and honest service from the seller's agent and disclosure of pertinent information about the property.
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.