royal lepage bedford halifax
Sandy and Judy Hines
902-877-4668
902-489-4663
sandy@sandyhines.com
halifax real estate,halifax listings,halifax military,halifax schools,halifax mls stats,halifax real estate blog,halifax weather,halifax real estate links,sandy hines
Agency for Real Estate Agents in Nova Scotia

Below is a sometimes very confusing explanation of agency. You as a buyer or a seller are used to describing the real estate salesperson that you are working with as your "agent". This means to you that you have an "Agency" relationship with this person. Although this is true in many cases it is not true in all. The real estate salesperson may choose to deal with you as a "Customer" which means they have obligations to you but different than if they were your agent. For example if you buy a house from a builder's salesperson that has dealt with the builder for 10 years and has sold 50 homes a year with this builder. The salesperson would not be able to deal with you in an "agency relationship" so they would deal with you as a "customer". This would also be true if you were buying a condo in a project where all condos in the project were handled by a salesperson. That salesperson would have to deal with you as a "customer". This is confusing but to understand it you need to see the salesperson as that a salesperson and the relationship as agency or customer.
Transaction Brokerage comes in to play when the buyer is buying a property listed with either your salesperson or another salesperson in the same brokerage. In this situation the salesperson is acting for both parties and has to take more of a neutral role. For example the salesperson cannot recommend a price for the buyer to offer or a price for the seller to counter offer.

Although this is all a little confusing it isn't as complicated as it appears. Read below carefully and you will have at least a basic understanding of the relationship you may have with your salesperson.

Agency
Brokerage representatives may or may not have an agency relationship with you. If you are a client then, there will be an agency relationship, if you are a customer then there is not an agency relationship. As a client, the brokerage representative and brokerage have a much higher level of responsibility to you than if you are a customer. The following sections give an explanation of agency and the obligations agents have to both clients and customers.

Sellers or Buyers Agency - with you as a client
Most sellers and buyers have agency relationship with the brokerage representative they are using. When you are in an agency relationship with a brokerage, the brokerage representative has the authority to represent you in dealings with others. Brokerages and their representatives are legally obligated to protect and promote the interests of their principals (clients). Specifically, the brokerage representative has the following duties:

  1. Undivided loyalty. The brokerage representative must protect the principal's negotiating position at all times, and disclose all known facts which may affect or influence the principal's decision.
  2. To obey all lawful instructions of the principal.
  3. An obligation to keep the confidences of the principal.
  4. The exercise of reasonable care and skill in performing all assigned duties.
  5. The duty to account for all money and property placed in a brokerage representative's hands while acting for the principal.

You can expect competent service from your brokerage representative, knowing that the brokerage is bound by ethics and the law to be honest and thorough in representing a buyer or representing a property listed for sale. Both the buyer and seller can be represented by their own brokerage representative in a single transaction.

Transaction Brokerage - with both the buyer and seller as a client
Transaction brokerage occurs when a brokerage representative or one brokerage is representing both the buyer and seller in the same transaction. Since the brokerage representative has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.

If you find yourself involved in a transaction brokerage relationship, before making or receiving an offer, both you and the other party will be asked to consent in writing to this new limited agency relationship.

This relationship involves the following limitations:

  1. The brokerage representative will deal with the Seller and the Buyer impartially;
  2. The brokerage representative will have a duty of disclosure to both the Seller and the Buyer except that,
    • the brokerage representative will not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the Offer, or that the Seller is willing to accept a price or terms other than those contained in the Listing;
    • the brokerage representative will not disclose the motivation of the Buyer to buy or the Seller to sell unless authorized by the Buyer or Seller;
    • the brokerage representative will not disclose personal information about either the Buyer or the Seller unless authorized in writing;
  3. The brokerage representative will disclose to the buyer defects about the physical condition of the property known to the brokerage representative;
  4. The brokerage representative may disclose all comparable property information to the Buyer and the Seller at any time;
  5. the brokerage representative will not be required to disclose to the Buyer or the Seller confidential information obtained through any other existing or former agency relationship.

No Agency- with you as a customer
You may also choose to use the services of a brokerage representative without having any kind of agency relationship. This might occur, for example, when you are being shown a property by the Seller's brokerage representative.

The brokerage representative you choose to work with in this manner has a legal and ethical duty to provide you with accurate, honest answers to your questions and can provide all these services:

  • Explain real estate terms and practices
  • Provide and explain forms used
  • Assist you in screening and viewing properties
  • Inform you of lenders and their policies
  • Identify and estimate costs involved in a transaction
  • Assist you in establishing your range of affordability
  • Prepare offers or counter offers at your direction
  • Present all offers promptly

A brokerage representative who is not your agent cannot:

  • Recommend or suggest a price
  • Negotiate on your behalf
  • Inform you of their principal's top/bottom line
  • Disclose any confidential information about their principal unless otherwise authorized.

All Buyers and Sellers, whether in an agency relationship with a brokerage representative or not, will be given an agency brochure and asked to sign an acknowledgement that they have been provided this agency information and had an opportunity to review it.

Bookmark and Share

© Copyright 2000 - 2009 All Rights Reserved - Sandy and Judy Hines. All text, images and video are the original creations and the sole property of Sandy and Judy Hines. Any duplication without permission is prohibited.
MLS®

Our Halifax area Home Buying Guides:
Halifax Nova Scotia real estate

Bedford Nova Scotia real estate

Hammonds PLains Nova Scotia real estateClayton Park real estate
Dartmouth Nova Scotia real estateSackville Nova Scotia real estateTimberlea Nova Scotia real estate