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Buyers Information |
| What
is Agency ? |
| Agency relationship is created where one person, known as
the principal, asks another person, known as the agent, to act
for and on behalf of the principal. The principal will define
the nature and extent of the agency relationship; in other words,
what the agent is being asked to do. In Real Estate transactions,
agency relationships are created when vendors or purchasers
ask REALTORS to act on their behalf in Real Estate transactions. |
| Consequences of Agency relationship
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| 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 interest at all
times. The agent owes his principal a duty of confidentiality
regarding information about the principal. |
| Agency in Real Estate transactions |
| In most cases, there are two parties to a real
estate transaction; a vendor who owns a property and who wants
to sell it, and a purchaser who wants to buy a property. The
job of REALTORS is to bring together willing Vendors and willing
Purchasers in successful real estate transactions. For a more
detailed explanation, please read below |
| The choice is yours? |
| All Canadian Real Estate Brokers and Sales people are required
to inform consumers of their options when working with a Realtor.
The options are simple; |
| Customer Status |
| As a Realtor's "Customer", the Realtor can provide
you with pertinent market data, can show you properties and
can give you technical information regarding financing, promotion,
offer preparation and the closing process, but otherwise they
will not be representing your interests. As a Realtor's "Customer",
the Realtor is obligated to treat you fairly and honestly, and
must exercise due skill and care in answering your questions.
Traditionally in Ontario, purchasers of residential real estate
have had "Customer" relationships with Realtors. But,
more and more purchasers are seeing the benefits of "Client"
status, and are entering into Purchaser Agency Agreements with
Realtors. |
| Client Status |
| As a Realtor's "Client", in legal and practical
terms the Realtor must represent your interest throughout the
selling or buying process. You will get all of the services
available to a "Customer", plus the added benefit
of having the Realtor working on your behalf to get the best
deal possible for you. If you are a "Client", your
Realtor owes you the legal duties of competence, obedience,
accounting, good faith, and full disclosure. Your Realtor can
explain these terms in detail, but essentially they mean that,
if you are a "Client", your Realtor is legally obligated
to get the best deal for you throughout the buying or selling
process. |
| Dual Agency: |
| A buyer who is a "Client" of Royal LePage Signature
Realty may wish to buy (or rent) a property which is listed
with Royal LePage Signature Realty. In such cases, both the
Vendor and buyer are clients of Royal LePage Signature Realty,
a situation referred to as "dual agency". In such
situations, some special arrangements must be made which can
be fully explained to you by your salesperson if the need arises. |
| Legal Obligation |
| By providing you with an Agency Disclosure form and obtaining
your acknowledgment (which in no way obligates you to work with
them), the Sales Representative or Broker is simply fulfilling
his or her legal obligation to make written disclosure to you
of your options in working with a Realtor in Ontario. You will
have "Customer" status unless you have entered into
some form of Agency Agreement. |
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