Agency relationships are crucial for both buyers & sellers. It is created in 2 ways; implied (created by the actions of parties) & express created by giving consent (either written OR oral). The Real Estate Act requires me, your Realtor® to explain the relationships & obligations I have to you. Once you decide to hire me, we will formalize the relationship through a written service agreement. The first thing we do together is expressly create this agency relationship by means of the SELLER BROKER AGREEMENT.
This is an agreement that sets forth what you can expect out of me, and what I expect of you. Here, you grant the brokerage the authority to sell your property on the terms & conditions in the contract. You need to understand this contract and I encourage you to use the link to print off a copy. We will be discussing in detail the agency relationships that are created or may be created throughout the course of doing business together.
AGENCY RELATIONSHIPS GUIDE:
We will be speaking in detail about “Agency” and the Agency Relationships guide will be given to you and you will be asked to sign that you agree to our relationship.
Sole Agency:
Most relationships begin in sole agency, which is established in the Seller Broker Agreement. Our relationship changes from sole to dual agency, usually because a buyer under my representation is interested in your home. This obviously poses a conflict of interest, and the Real Estate Act requires me to inform you of this. It is innately impossible to protect 2 opposing parties’ best interests; agency must change from sole to “dual” agency, where I become a facilitator to the transaction so both parties can come to a mutually agreeable contract.
Dual Agency
A situation of dual agency is when the brokerage or its industry member represents both the buyer & the seller in the same trade {Real Estate Act}. A conflict of interest arises when trying to properly represent the best interests of two opposing positions (that of seller & buyer). And so, we then enter into what we call transactional brokerage. Some key points to understand under this circumstance are:
- You understand my role as now a facilitator of the purchase/sale. I become a neutral entity and help both parties come to a mutually acceptable binding contractual agreement.
- You need to understand that under transactional brokerage, I am obligated to share non-confidential information you have given me to the buyer.
- Under sole agency, I was obligated to disclose everything I know to you. Now, to facilitate the contract under dual agency, if the buyer asks me to keep something confidential, I must abide.
- As dual agent, I cannot try to get you the best deal to the detriment of the buyer.
- Under dual agency, if you ask me for advice, the buyer will be informed.
If a buyer shows interest in your home, and they are also being represented by me or the brokerage I work for, you have 2 choices:
1. Enter into transactional brokerage (Transaction Brokerage Agreement) and proceed under dual agency to facilitate the sale of your home.
2. Refuse the Transaction Brokerage Agreement & continue being represented under sole agency. The buyer will then be directed to another industry member or another brokerage.
As your realtor®, my job is to sell your home to the best of my ability. However, never should this come before your best interests. Your comfort & satisfaction during every phase of our business relationship is a priority uphold strictly, so please ask questions if you do not understand agency.
