Urban Vancouver

Maria Mak - Burnaby Real Estate Agent - understanding agency relationship when working with a realtor

By Maria Mak - Sut... on May 7, 2012 - 5:49pm

REALTORS® work within a legal relationship called agency.

The agency relationship is established through a contract between you, the client, and your agent, the company under which the REALTOR® is licensed. Most REALTOR® use a blue brochure titled Working with a Real Estate Agent to disclose the nature of the agency relationship with their client.

A REALTOR® can act for a seller or a buyer, or to a limited degree, both. Whomever they represent, REALTORS® have a legal obligation to uphold the integrity of their clients, while protecting and promoting their interests.

Seller's AgentBuyer's Agent Dual Agency

• For your REALTOR® to list your property for sale on MLS®, the Real Estate Board of Greater Vancouver requires completion of a listing agreement.
• Signing this agreement with you commits your REALTOR® to uphold the above obligations.
• The listing agreement also states the compensation amount the seller will pay the REALTOR®.

• The contract of purchase and sale is initiated when an offer is made by the buyer to purchase the sellers's property.
• The contract outlines the terms and conditions of the offer, such as offer price and subject conditions.
• The seller may reject the offer or make a counter offer.
• Once all terms have been accepted and both seller and buyer have signed the contract, each party is legally bound to fulfill the conditions of the contract.

• Dual agency is created when an agent represents both the buyer and seller in a single transaction.
• This can happen if a REALTOR® who is representing a buyer, sells one of their own listings to that buyer.
• A dual agent must be impartial to both buyer and seller and fully disclose all information relating to the transaction.
• A REALTOR® can be a dual agent only if both seller and buyer agree in writing.

Remember: always read all contracts and disclosure forms before signing. If you have questions about agency relationships contact your REALTOR® or Maria Mak @ Sutton Centre Realty or visit her website at www.mariamak.com , You'll be smilling too!