You Might Be Wondering ... What Is Agency?
Updated: 4 days ago
Let's start out with one important fact before carrying on ...
To be a Licensed REALTOR®, that Real Estate Agent must work under a Real Estate Brokerage as a representative of that Brokerage. So, when you hire a REALTOR®, you are actually hiring the entire Brokerage. By signing certain documents like the one we are about to discuss, the Agency Disclosure, you the home buyer/seller are acknowledging that you understand what Agency means and how that applies to the relationship between you and the Brokerage with the REALTOR® as it's representative.
All REALTORS® work within of framework of legal principals called Agency.
Agency, at law, is defined as a specific relationship between two or more people where one person (the home buyer/seller) authorizes the other (Brokerage/REALTOR®) to act on their behalf, and the other consents to do so. When you hire a REALTOR® to represent you in the purchase or sale of property, you and the Brokerage/REALTOR® are in an Agency relationship.
In Saskatchewan, there are three types of Agency relationships.
Seller's Agency - the REALTOR® represents ONLY the interests of the Seller.
Buyer's Agency - the REALTOR® represents ONLY the interests of the Buyer.
Limited Dual Agency - the REALTOR® represents both sides with limitations.
Obey the Seller's instructions on the Exclusive Seller's Brokerage Contract and all lawful instructions of the Seller.
Represent the Seller's best interests.
Fully disclose known facts which might influence a Seller's decision.
Maintain the confidentiality of personal and financial information discussed with the Seller even after the Exclusive Seller's Brokerage Contract expires.
Safeguard the Seller's documents and money.
Exercise reasonable care and diligence.
Obey the buyer's instructions on the Exclusive Buyer's Brokerage Contract and all lawful instructions of the Buyer.
Represent the Buyer's best interests.
Fully disclose known facts which might influence a Buyer's decision.
Maintain the confidentiality of personal and financial information discussed with the Buyer even after the Exclusive Buyer's Brokerage Contract expires.
Safeguard the Buyer's documents and money.
Exercise reasonable care and diligence.
Limited Dual Agency: Occurs on the sale of a property when the same REALTOR® or when different REALTORS® from the same Brokerage work for both the Buyer and the Seller. When Dual Agency occurs, the Brokerage's duties of confidentiality and loyalty to the Seller conflict with the same duties to the Buyer. As a result, ASR (Association of Saskatchewan REALTORS®) proposed certain rules and limitations to deal with such situations.
They are as follows:
That the REALTOR® will not disclose that the Buyer will pay a price or agree to terms that are not contained within the offer, or that the Seller will accept a price or terms other than those contained in the Exclusive Seller's Brokerage Contract.
That the REALTOR® will not disclose the motivation of the Buyer to buy or the Seller to sell unless authorized by the Buyer or the Seller.
That the REALTOR® will not represent the interests of either the Buyer or the Seller to the advantage of one over the other.
That the REALTOR® will not disclose personal or financial information of either the Buyer or the Seller unless authorized in writing.
That the REALTOR® shall disclose to the Buyer all material defects about the physical condition of the property known to the REALTOR®.
That all "comparable" property information may be disclosed to both the Buyer and the Seller at anytime.
The Brokerage shall disclose the Dual Agency to the Buyer immediately before preparing an offer (Contract of Purchase and Sale) on the property for signing by the Buyer. The Brokerage shall disclose the Dual Agency to the Seller immediately before presenting that offer (Contract of Purchase and Sale) to the Seller for acceptance. The Brokerage shall not be obligated to disclose Dual Agency before the times described above.
I hope you found the information provided on Agency helpful, and should you need more clarification, I'd be happy to answer those questions for you!
Have a great day,