AGENCY RELATIONSHIPS

Agency relationships can be confusing, and it is my job to make sure you understand your rights and responsibilities. Some of this material is reprinted from the Toronto Real Estate Board 's brochure, "Agency Relationships Explained".

 

WHAT IS AN AGENCY RELATIONSHIP?
According to the TREB, "In real estate transactions, agency relationships are created when vendors or purchasers ask realtors to act on their behalf in real estate transactions."

 

WHAT IS THE TORONTO REAL ESTATE BOARD (TREB)?
The Toronto Real Estate Board is an association of realtors. It operates the Multiple Listing Service (MLS) so that sellers, through their agents, can publicize the availability of their property. The TREB requires that its members (realtors) subscribe to a strict Code of Ethics and all By-Laws, and operates Ethics and Arbitration Committees to ensure high standards.

The term "Agency Relationship" describes the relationship between a buyer or seller and their realtor. The type of relationship varies.

 AGENCY RELATIONSHIP CONSEQUENCES

The TREB states that "As a matter of law, an agent who represents a principal owes that principal the highest duty of "utmost good faith"; the agent must represent the principal's best interests at all times. The agent owes his principal a duty of confidentiality regarding information about the principal.

This means that once you enter into an Agency Relationship, your agent is obliged to work in your best interests, and protect your confidentiality. Agency Relationships involve both an ethical and legal commitment.



“Understanding Agency relationship is a crucial part of a relationship”