TYPES OF RELATIONSHIPS

There are many different types of relationships that buyers can have with their realtor. Go to the next page to view some of the more typical ones.

• SUB-AGENT OF THE VENDOR: In this case, the realtor is technically an agent of the vendor, and duties are owed to that vendor. However, the buyer can expect the realtor to disclose all pertinent information about a property, not to misrepresent any facts, and to honestly answer all questions.

• BUYER BROKER (to be compensated by buyer): The buyer can expect the realtor to act in their interest alone as there is no sub-agency relationship with the vendor. In this case, the buyer pays the realtor.

• BUYER BROKER (to be compensated through the listing broker): In this case, the realtor is compensated through the listing broker, but the buyer can still expect the realtor to act in their interest alone. In cases of buyer brokerage, the relationship is typically established by a Purchaser's Agency Agreement, and the realtor is clearly only the agent of the purchaser.

These are typical agency relationships, but there may be others.

 DUAL AGENCY

WHAT IS DUAL AGENCY?
Dual agency refers to the situation whereby the buyer and seller are both represented by the same agent or firm.

CAN DUAL AGENCY CAUSE A CONFLICT OF INTEREST?
As there is a single firm or agent acting for two principals, the duties to the principals can be conflicted. In cases where dual agency may occur, it is typical for the realtor to ask the party signing the agreement to acknowledge that dual agency may occur, and that conflicts and duty of confidentiality are waived.

WHAT OTHER REQUIREMENTS DO REALTORS HAVE TO MEET?
In an offer regarding real estate property, (or if the agency relationship changes), realtors are required to disclose to other realtors the nature of their agency relationship. This is called disclosure of relationship, and is expected at the earliest practical point in time.

For further details on Agency Relationships, you may visit the Toronto Real Estate Board, or contact me


"As a Seller and a Purchaser you have a choice in how you would like to be represented"