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Understanding agency relationships with your REALTOR®

Buying or selling a home may be the most important financial transaction you'll ever make. Consider the kind of relationship you will be entering into with your REALTOR®.

REALTORS® work within a legal relationship called agency. The agency relationship is between, you as the client, and your agent, the company with which the REALTOR® is licensed. Most REALTORS® use a brochure titled Working with a Real Estate Agent to disclose the nature of the agency relationship with their client.

A REALTOR® can act for a seller or a buyer, or to a limited degree, both. Whomever they represent, REALTORS® have a legal obligation to uphold the integrity of their clients, while protecting and promoting their interests.

Seller's agent

As a seller, your realtor’s professional marketing skills and networking connections help in obtaining the maximum market value for your home. During negotiations, your REALTOR® represents your interests and provides advice on price, possession and closing date.

For your REALTOR® to list your property for sale on the Multiple Listing Service (MLS®), the Real Estate Board of Greater Vancouver requires completion of a listing agreement. By signing the listing agreement with you, your REALTOR® has committed to uphold obligations. The listing agreement also includes the amount of compensation the seller will pay the REALTOR®.

Buyer's agent

A realtor’s expert knowledge of your neighbourhood, future development plans, taxes, zoning, transportation, schools, and community services will help you select a property that meets your needs. By combining knowledge with research, your REALTOR® will be able to provide a comparison of similar properties and market statistics. Your REALTOR® will also advise you on financing options and make recommendations to other professionals needed to complete the sale.

The contract of purchase and sale is completed when an offer is made by a buyer to purchase a seller’s property. The contract outlines the terms and conditions of the offer, such as the offer price and any subject conditions. The seller may reject the offer or make a counter offer. Once all terms have been accepted and both the seller and the buyer have signed the contract, each party is legally bound to fulfill the conditions of the contract.

Dual agency

Dual agency is created when an agent represents both the buyer and a seller in the same transaction. This can happen if a REALTOR® who is representing a buyer sells one of his or her own listings to that buyer.

In a dual agency relationship, before making or receiving an offer, all people involved must consent in writing to this limited agency relationship.

No agency relationship

This occurs when the services of a REALTOR® are used without having an agency relationship. An example would be if you were being shown a property by the seller’s agent.

This REALTOR® still has a legal and ethical duty to provide accurate and honest answers to all your questions. A realtor, however, who is not your agent can’t recommend or suggest a price, negotiate, disclose his client's top or bottom price or any confidential information, unless authorized.

Whatever agency relationship you enter into with your realtor, you can be assured your REALTOR® will look after your best interests.