Agency Law
Agency is a legal concept that governs the conduct of several professionals: Mortgage Consultants, Insurance Agents, Stockbrokers, Appraisers, REALTORS® etc. In the real estate industry, the REALTOR® has a legal obligation to work in the best interest of their client.
Typically, a REALTOR® represents a Buyer or a Vendor. In some instances, a situation arises in which a REALTOR®/Brokerage represents both the Vendor and the Buyer. This event is called Multiple Representation.
We believe that it is crucial that every individual involved in a transaction understands the terms of the contract they sign and who will pay for the services rendered. When working with a REALTOR® (Sales Representative/Broker member of the Canadian Real Estate Association), it is important to understand whom they represent.
A REALTOR® can be a dual agent only if both the Purchaser and Vendor agree in writing. Please discuss this with your Realtor.
Who Pays
Usually, a REALTOR® will be paid from the proceeds of the sale. The Listing Agreement states the REALTOR’s® fee. Under the M.L.S. system, the fee offered to the Agent working with the buyer is indicated on the listing advertised through the M.L.S. system, simplifying the negotiation of the buyer’s agent fee at the time of the transaction. Where deficiency in the amount of the fee occurs, the buyer remains responsible for the Buyer Agent’s fee. Please discuss this matter with your sales representative.
- HONESTY AND INTEGRITY
- Most real estate professionals in our province are members of the Ontario Real Estate Association (OREA). Only OREA members can call themselves REALTORS®. When working with a REALTOR®, you can expect not only strict adherence to provincial laws, but also to a Code of Ethics. That code of ethics is very important to the client since it assures them that they will receive the highest level of service, honesty and integrity.
HIGHEST PROFESSIONAL STANDARDS- Before receiving a real estate license, candidates must successfully complete an extensive course of study developed by OREA on behalf of the Ontario Government. In the two years after receiving their license, the new professionals are required to complete three additional courses as part of their articling with an experienced broker.
