Laws of Agency
When buying or selling properties through a REALTOR®, such as Stan Shawn, it is important to understand the agency relationship between you (the "principal") and the brokerage, for example, RA Realty Alliance.
The Agency Relationship
REALTORS® work within a legal relationship called agency. The agency relationship exists between you, the principal, and your brokerage, the company under which the individual representing you is licensed. The essence of the agency relationship is that the brokerage has the authority to represent the principal in dealings with others.
Brokerages and their licensees are legally obligated to protect and promote the interests of their principals as they would their own. Specifically, the brokerage has the following duties.
You can expect competent service from your brokerage, knowing that the company is bound by ethics and the law to be honest and thorough in representing a property listed for sale or lease. Both buyer/tenant and seller/landlord can be represented by their own brokerages in a single transaction.
When a brokerage designates a REALTOR® or REALTORS® to work solely on your behalf in real estate transactions, the REALTOR® and brokerage are bound by ethics and the law to be honest and thorough in representing you. The brokerage must account for all money and property placed in its hands while acting for you. The REALTOR® must:
Dual agency occurs when a brokerage is representing both buyer/tenant and seller/landlord in the same transaction. Since the brokerage has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.
If you find yourself involved in a dual agency relationship, before making or receiving an offer, both you and the other party will be asked to consent, in writing, to this new limited agency relationship.
This relationship involves the following limitations:
When There is No Agency Relationship
You may also choose to use the services of a REALTOR® without having any kind of agency relationship. This might occur, for example, when you are being shown a property by the seller's/landlord's agent.
A REALTOR® who is not your agent cannot:
You should not provide a REALTOR® who is not your agent with any information that you would not provide directly to his or her principal.
Members of the public are aware that, in most cases, properties offered for sale by members of the real estate profession have a commission or fee that the seller/landlord has agreed to pay to the listing brokerage.
The listing brokerage traditionally shares this commission/fee with the cooperating brokerage. Commission and fee may vary.
(source: BC Real Estate Association)
Stan Shawn, your personal REALTOR® for VANCOUVER