Real Estate Relationships

The Code of Ethics of the Canadian Real Estate Association requires its members to explain the nature of their relationship with all parties whom they contact in connection with a real estate transaction.

Before you enter into a discussion with a real estate Sales Representative (or Broker) to purchase a home, you should understand what type of relationship or agency representation they have with that real estate company.

Definitions

The agent is the real estate company (the broker), its branch offices and Sales Representatives (or Brokers).

The client is the party who contracts for an agent to act on their behalf to either purchase, sell, or lease a property. As a client, you are entitled to a Realtor's opinion of value and market analysis.

The customer is a person who receives services from another person's agent, providing information while being treated honestly and fairly.

The co-operating (listing) broker generally owes loyalty to the seller.

The buyer broker generally owes loyalty to the buyer.

Agency Relationships

There are two types of agency relationships: single agency and dual agency. Single agency exists when an agent (company) exclusively represents either the seller or buyer. Dual agency exists when the same agent (company) represents both the seller and the buyer in the same transaction.

A dual agency relationship may create a conflict for the real estate company because the agent's duties of confidentiality, full disclosure, and total loyalty to one part may be in conflict with the same duties owed to the other party.

The Golden Rule for agents is ... Treat all parties fairly and honestly.