Who Is Working For You ?

It is important that you understand who the REALTOR® is working for.  For example both the Seller and the Buyer may have the own Real Estate Agent which means they have a REALTOR® who is working for them.  Or some Buyer's may choose to contact the Seller's Agent directly.  Under this arrangement the REALTOR® is working for the Seller and must do what is best for the Seller, but may provide services to the Buyer. 

If the Seller and the Buyer have the same Real Estate Agent, this is Dual Agency and the REALTOR® is working for both the Seller and the Buyer.

Following are the different forms of Agency Relationship.

Seller's Agent:

A written contract called a Listing Agreement establishes seller agency.  It explains services the Brokerage will provide, establishes a fee arrangement for the REALTOR'S services and specifies what obligations a Seller may have.  A Seller's Agent must tell the Seller anything known about a Buyer.  A Buyer working with the Seller's Agent can expect fair and honest service and disclosure of pertinent information, however confidential information cannot be discussed.  The following link is a sample of a Listing Agreement.

http://www.torontorealestateboard.com/buying/plain_language_forms/pdf/200a_2011_PL.pdf

Buyer's Agent:

A written contract called a Buyer Representation Agreement establishes Buyer Agency.  It explains the services the Brokerage will provide, establishes a fee arrangement for the REALTOR'S services and specifices what obligations a Buyer may have.  The following link is a sample of a Buyer Representation Agreement.

http://www.torontorealestateboard.com/buying/plain_language_forms/pdf/300_2011_PL.pdf

Dual Agency:

Occasionally a Brokerage will be the agent of both the Buyer and the Seller.  The Buyer and the Seller must consent to this arrangement in writing.  Under this "Dual Agency" arrangement, the Brokerage must do what is best for both the Buyer and the Seller. 

Since the Brokerage's loyalty is divided between the Buyer and the Seller who have conflicting interests, it is absolutely essential that a dual agency relationship be established in writing.

Code of Ethics

The Code of Ethics administered by the Real Estate Council of Ontario requires REALTORS® to disclose in writing the nature of the services they are providing and to obtain written acknowledgement. The Code requires REALTORS® to enter into a written agency agreement with any Sellers or Buyers they are representing.