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Working with a Real Estate Agent
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YOUR RELATIONSHIP WITH A REALTOR
Buying, selling or leasing real estate is probably the most important and potentially rewarding financial transaction you'll make in
your life. So it is a good idea to take a moment
and consider the kind of relationship you might
be entering into with a REALTOR. The more
you know, the more satisfied you will be with
the results.
Members of the public are aware that in most
cases properties offered for sale or lease by
members of the real estate industry have a
commission or fee that the seller/landlord has
agreed to pay to the Listing Agent. The Listing
Agent traditionally shares this commission/fee
with the Cooperating Agent. Commission and
fee may vary.
REALTORS, Agents and real estate boards
need to collect, use and disclose some personal
information to help you sell, buy or lease
real estate.
I consent to the Boards, other real estate
boards, the Agent and the REALTOR collecting,
using and disclosing personal information
for the purposes (and to the recipients) described in the brochure.
I further understand that I will be signing
additional documentation acknowledging the
type of agency that I receive and consenting to
the collection, use and disclosure of personal
information.
THE AGENCY RELATIONSHIP
REALTORS work within a legal relationship
called agency. The agency relationship exists
between you, the principal, and your Agent,
the company under which the individual salesperson who is representing you, is licensed.
The essence of the agency relationship is that
the Agent has the authority to represent the
principal in dealings with others.
Agents and their salespeople are legally obligated to protect and promote the interests of
their principals as they would their own. Specifically, the Agent has the following duties:
1) Undivided loyalty. The Agent must protect
the principal's negotiating position at
all times, and disclose all known facts
which may affect or influence the
principal's decision.
2) To obey all lawful instructions of the
principal.
3) An obligation to keep the confidences of
the principal.
4) To exercise reasonable care and skill in
performing all assigned duties.
5) To account for all money and property
placed in an Agent's hands while acting
for the principal.
You can expect competent service from your
Agent, knowing that the company is bound by
ethics and the law to be honest and thorough
in representing a property listed for sale or
lease. Both buyer/tenant and seller/landlord
can be represented by their own Agents in a
single transaction.
DUAL AGENCY
Dual agency occurs when a real estate Agent
is representing both the buyer/tenant and the
seller/landlord in the same transaction. Since
the Agent has promised a duty of confidentiality,
loyalty and full disclosure to both parties
simultaneously, it is necessary to limit these
duties in this situation, if both parties consent.
If you find yourself involved in a dual agency
relationship, before making or receiving an
offer, both you and the other party will be
asked to consent, in writing, to this new limited
agency relationship.
This relationship involves the following limitations:
a) The Agent will deal with the buyer/tenant
and the seller/landlord impartially;
b) The Agent will have a duty of disclosure
to both the buyer/tenant and the
seller/landlord except that:
i) the Agent will not disclose that the
buyer/tenant is willing to pay a price or
agree to terms other than those contained
in the offer, or that the seller/
landlord is willing to accept a price or
terms other than those contained in the
listing;
ii) the Agent will not disclose the motivation
of the buyer/tenant to buy or lease
or the seller/landlord to sell or lease
unless authorized by the buyer/tenant
or the seller/landlord;
iii) The agent will not disclose personal
information, not otherwise necessarily
disclosed in the transaction documentation,
about the Buyer/Tenant or
Seller/Landlord to the other party unless
authorized in writing.
c) The Agent will disclose to the buyer/tenant
defects about the physical condition of the
property known to the Agent.
WHEN THERE IS NO AGENCY RELATIONSHIP
You may also choose to use the services of a
REALTOR without having any kind of agency
relationship. This might occur, for example,
when you are being shown a property by the
seller/landlord's Agent.
The REALTOR you choose to work with in this
manner has a legal and ethical duty to provide
you with accurate, honest answers to your
questions and can provide all these services:
Explain real estate terms and practices
Provide and explain forms used
Assist you in screening and viewing properties
Inform you of lenders and their policies
Identify and estimate costs involved in a
transaction
Assist you in establishing your range of
affordability
Prepare offers or counter-offers at your
direction
Present all offers promptly
A REALTOR who is not your Agent cannot:
Recommend or suggest a price
Inform you of his/her principal's top/bottom
line
Disclose any confidential information
about his/her principal unless otherwise
authorized.
You should not provide a REALTOR who is not
your Agent with any information that you would
not provide directly to his or her principal.
Agency acknowledgement clauses such as the
following will be used in the Contract of Purchase and Sale or the Offer to Lease:
The seller/landlord has an agency relationship
with ___________________________(Agent) and
_________________________(Salesperson)
The buyer/tenant has an agency relationship
with ___________________________(Agent) and
_________________________(Salesperson)
The buyer/tenant and the seller/landlord have
consented to a limited dual agency relationship
with _______________________________(Agent)
_________________________(Salesperson)
and________________________(Salesperson)
having signed a Limited Dual Agency Agreement
dated _________________________, yr._________
I acknowledge having received and read the
brochure Working With a Commercial Real
Estate Agent. I understand the various types of
relationships that may occur between myself
and a REALTOR.
The Boards are the real estate boards and
associations in whose jurisdiction the property
is located and/or of which the Agent or the
REALTOR is a member. They are associations
which assist REALTORS to market, sell or
lease real estate. The Boards also provide
ongoing training for their members, enforce
ethical standards and help resolve disputes
between members and the public.
The Multiple Listing ServiceŽ is a computerized
database of real estate listings and sales.
It is operated by the Boards in conjunction with
other real estate boards and the Canadian
Real Estate Association.
Personal Information means any personal
information about you, including your name,
address, phone number, financial information
and may include information about your property
(such as listing and selling price, lease
rate, listing term, etc.).
The buyer/tenant is often referred to as the
purchaser.
The seller/landlord is often referred to as the
vendor.
The principal is someone who has engaged
an Agent to act for and on his or her behalf
either to buy, sell or lease real estate.
The landlord is often referred to as the lessor.
The tenant is often referred to as the lessee.
This pamphlet has been designed to explain
various types of agency relationships, the collection, use and disclosure of personal information, and to help you understand what it all means. If you are still unclear about these
concepts, feel free to seek legal counsel.
DEFINITIONS
The Agent is the real estate company under
which the individual salesperson is licensed.
REALTOR is a trademark describing members
of the Canadian Real Estate Association
who subscribe to a strict Code of Ethics
and a high standard of professional service.
REALTORis often used interchangeably with
licencee, real estate agent or salesperson
and, in BC, is licensed under the Real Estate
Act. A REALTOR can use the term REALTOR
if he/she belongs to a local board or association
that enforces a strict Code of Ethics.
REALTORS, Agents and real estate boards
need to collect, use and disclose some personal
information to help you sell, buy or lease
real estate. We respect your privacy and want
to ensure you understand how and why your
information is collected, used and disclosed in
a real estate transaction.
How is my personal information collected?
Most personal information will be collected
directly from you through the contracts and
other documents you fill out (e.g., Multiple
Listing Contract, Contract of Purchase and
Sale, Offer to Lease, seller's Property Disclosure Statement) and through discussions you
have with your REALTOR. Some information
may be collected from other sources such as
government departments and agencies (e.g.,
Land Title Offices, BC Assessment), financial
institutions and mortgage brokers.
To whom may my personal information be
disclosed? Your information may be disclosed
to (or may be accessible by) the Boards and
their staff and members, other real estate
boards and their staff and members, other
REALTORS and their clients, government departments and agencies, financial institutions,
legal advisors, service providers, the British
Columbia Real Estate Association, the Real
Estate Council of British Columbia, the Canadian
Real Estate Association and members of the public, for the purposes described on the next panel. Not all of your information will be accessible to each of the above-mentioned entities. For example, once the listing term has ended, the general public will not have access to your information unless it is otherwise available through public registries (e.g., BC Assessment, Land Title Offices).
Why is my personal information collected,
used and disclosed? Your information may
be collected, used and disclosed for some or
all of the following purposes:
a) To allow members of real estate boards
(including REALTORS and appraisers) to
appraise your property.
b) To list your property with the Multiple
Listing ServiceŽ in order to market your
property.
c) To market your property for sale or lease
through any other media (both print and
electronic).
d) To help you locate a suitable property to
purchase or lease.
e) To facilitate the purchase and sale or
lease transaction (by cooperating with financial
institutions, legal advisors and
government departments and agencies).
f) To allow the Boards and other real estate
boards and their members (including
REALTORS and appraisers) to compile
current and historical statistics on sales
and property prices and lease rates, and
to conduct comparative market analyses.
Information about your property will be
retained in the Multiple Listing ServiceŽ
for these purposes after your property has
sold or leased or your listing has expired
(if you are a seller/landlord) and after you
have purchased or leased your property
(if you are a buyer/tenant).
g) To enforce codes of professional conduct
and ethics for members of real estate
boards (by cooperating with real estate
boards, the British Columbia Real Estate
Association, the Real Estate Council of
British Columbia, The Canadian Real Estate
Association and other regulatory bodies).
h) To comply with legal requirements and to
act pursuant to legal authorizations.
The above-mentioned collections, uses and
disclosures are a necessary part of your relationship
with your REALTOR.
Will my personal information be collected,
used and disclosed for any other purposes?
Your information may also be collected,
used and disclosed for the following
additional purposes:
a) Your REALTOR may communicate with
you in future to determine whether you
require additional real estate services.
b) Your REALTOR may communicate with
you to provide information about other
products or services which may interest
you.
c) Other REALTORS may communicate with
you to determine whether you require additional real estate services.
These additional purposes are optional. If you
do not want your personal information disclosed
or used for these purposes, please contact the Board's privacy officer. Contact information for all real estate boards within BC can be found at the British Columbia Real Estate Association (BCREA) website:
www.bcrea.bc.ca or telephone 604.683.7702,
or toll free 1.877.361.3626.
YOUR RESPONSIBILITIES AS A BUYER OR A SELLER
As a buyer/tenant or a seller/landlord, you
should:
Carefully read all documents and understand
what you are signing.
If you need special or expert advice,
seek other professionals such as lawyers,
notaries, accountants, home inspectors,
contractors, engineers and surveyors
BRITISH COLUMBIA
REAL ESTATE
ASSOCIATION
Published by
BC1006 Copyright BCREA REV. DEC/03
Printed in Canada
PURPOSES FOR COLLECTING, USING AND DISCLOSING
PERSONAL INFORMATION PRIVACY PURPOSES FOR COLLECTING, USING AND DISCLOSING PERSONAL INFORMATION
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