There are a lot of documents that will require your signature when you are buying or selling a home. Having a trusting relationship with your REALTOR® is an invaluable asset, but you still need to know & understand what it is you are signing!
This post is going to delve into the different relationships (a.k.a. Agency Relationship) you can have with a REALTOR® & what they mean for you.
“When working with a REALTOR®, it is important to understand who the REALTOR® works for. To whom is the REALTOR® legally obligated?”
-OREA Working with a REALTOR®
We are governed by a legal concept referred to as agency
– this is a legal obligation to look after the best interests & be loyal to the people we represent.
It is important to note that any agency agreements you sign are with the Brokerage (company) that the REALTOR® works for & not the person themselves.
You have the choice of becoming a
CLIENT or CUSTOMER.
In a BUYER AGENCY, SELLER AGENCY, DUAL AGENCY, SUB-AGENCY or CUSTOMER SERVICE relationship .
When you enter into a Client relationship with a REALTOR® {through a Buyer Representation Agreement or Listing Agreement for Sellers} your interests are protected & the REALTOR® owes you fiduciary (legal) duties:
Although a REALTOR® may have entered into a Client relationship with you, they must still treat all parties in the transaction with fairness, honesty, and integrity.
If a Buyer or Seller does not wish to be under contract as a client they can create a customer service relationship. The obligations of a REALTOR® to a customer are very different than a client:
It is vitally important to understand that should the Brokerage (company) a REALTOR® works for have a Client relationship with the other party in a transaction, their fiduciary duty is to the Client & protecting their best interests.
This can be a lot to take in, however it is important you understand what your option are & what you are agreeing to. Contracts are binding & it is our responsibility to ensure you understand what you are signing.
Keeping it Genuine,
The Edwards Team
Here is brochure created by the Ontario Real Estate Association which outlines the relationships in detail & is often one of the documents that you will be required to sign if you decide to use a REALTOR®.