Jeff Martin Realty Executives Regina

cell 306 536 1955 | EMAIL jh.martin@accesscomm.ca |

Who Represents YOU in a Real Estate Transaction?

REALTORS® work within a framework of legal principles called agency. REALTORS® believe that it is important that the buying and selling public understand how an agency relationship works and when it exists.

At law, agency is a specific relationship between two or more people. One person must authorize the other person to act on his/her behalf, and the other person must consent to do so. In other words, when you authorize a REALTOR® to work for you in buying or selling a property and the REALTOR® agrees, you and the REALTOR® are in an agency relationship. As a member of the public, you are probably familiar with working with individual REALTORS®. However, the agency relationship is actually between you and the REALTOR's® brokerage. The brokerage is the real estate company, its branch offices and all of the salespeople. Therefore, when you hire your REALTOR®, the law of agency says that you hire the entire brokerage.

In Saskatchewan, REALTORS® practice three different forms of agency:

  • Seller's Agency
  • Buyer's Agency
  • Limited Dual Agency

SELLER'S AGENCY

In Seller's Agency, a real estate company represents only the interests of the seller. Sellers typically hire a real estate company to sell their property by signing a "listing" agreement (now called the Exclusive Seller's Brokerage Contract). This is the Contract which establishes the formal agency relationship between the seller and the real estate brokerage.

The Exclusive Seller's Brokerage Contract will explain exactly what the seller instructs the Seller's Brokerage to do, what services the Seller's Brokerage will provide to the seller, who will pay for those services and what obligations the seller will have.

A Seller's Brokerage is expected to:

  • obey the seller's instructions on the Exclusive Seller's Brokerage Contract and all lawfulinstructions of the seller;
  • represent the seller's best interests;
  • fully disclose known facts which might influence the seller's decisions;
  • maintain the confidentiality of personal and financial information discussed with the seller even after the Exclusive Seller's Brokerage Contract expires;
  • safeguard the seller's documents and money; and
  • exercise reasonable care and diligence.

BUYER'S AGENCY

In Buyer's Agency, a real estate company (brokerage) represents only the interests of the buyer. Buyer's Agency can be established by working with a REALTOR® or by a written contract between the buyer and the brokerage called an Exclusive Buyer's Brokerage Contract.

The Exclusive Buyer's Brokerage Contract will explain exactly what the buyer instructs the Buyer's Brokerage to do, what services the Buyer's Brokerage will provide to the buyer, who will pay for those services and what obligations the buyer will have.

In Buyer's Agency, it is the buyer who can expect the REALTOR® to:

  • obey the Buyer's instructions on the Exclusive Buyer's Brokerage Contract and all lawful instructions of the Buyer;
  • represent the Buyer's best interests;
  • fully disclose known facts which might influence the Buyer's decision;
  • maintain the confidentiality of personal and financial information discussed with the Buyer even after the Exclusive Buyer's Brokerage Contract expires;
  • safeguard the Buyer's documents and money; and
  • exercise reasonable care and diligence.

LIMITED DUAL AGENCY

Dual agencies occur when the same REALTOR® acts for both the buyer and the seller on the sale of a property. It also occurs when different REALTORS® work for the buyer and seller if those REALTORS® are employed by the same real estate company (brokerage) even if they work at different branch offices of that brokerage.

When dual agency occurs, the brokerage's duties of confidentiality and loyalty to the seller conflict with the same duties to the buyer. Therefore, the Association of Saskatchewan REALTORS® has proposed certain rules and limitations to deal with dual agency situations. The limitations of dual agency are:

  • that the REALTOR® will not disclose that the buyer will pay a price or agree to terms other than those contained in the offer, or that the seller will accept a price or terms other than those contained in the Exclusive Seller's Brokerage Contract.
  • that the REALTOR® will not disclose the motivation of the buyer to buy or the seller to sell unless authorized by the buyer or seller.
  • that the REALTOR® will not represent the interest of either the buyer or the seller to the advantage of one over the other.
  • that the REALTOR® will not disclose personal or financial information of either the buyer or the seller unless authorized in writing.
  • that the REALTOR® shall disclose to the buyer all material defects about the physical condition of the property known to the REALTOR®.
  • that all "comparable" property information may be disclosed to both the seller and buyer at any time.

The brokerage shall disclose the dual agency to the buyer immediately before preparing an offer (Contract of Purchase and Sale) on the property for signing by the buyer. The brokerage shall disclose the dual agency to the seller immediately before presenting that offer (Contract of Purchase and Sale) to the seller for acceptance. The brokerage shall not be obligated to disclose the dual agency before the times described above.

            

                                                                              

  Mortgage Calculator

Before you start searching, find out how large of a mortgage you can comfortably afford..

  Exclusive Features

Sign up to Executive Access: 333% more listing info, new listings sooner, save your searches & more..

  Home Evaluation

Recent trends and home sales gives me an accurate analysis of your homes worth..

The Association of Regina REALTORS® Inc. (ARR) IDX Reciprocity listings are displayed in accordance with ARR's MLS® Data Access Agreement and are copyright of the Association of Regina REALTORS® Inc..
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Association of Regina REALTORS® Inc. displayed on this site is refreshed every 2 hours.