| Agency Representation
Types of Agency Relationships
Agent Represents One Party:
In Manitoba, the approach to real estate agency relationships is one that reflects the general understanding and expertatation of buyers and sellers. It is generally understood that whether selling or buying, the salesperson and his/her real estate firm that you engage and rely on for representation has formed an agency relationship with you whereby the agent/client duties arise. It is this approach that is reflected in your local real estate board's multiple listing contact for residential property and the statutory residential offer to purchase form that the salesperson is required to use for residental properties. It is assumed, that unless the parties otherwise agree, the salesperson and the firm representing the seller is the seller's agent and the salesperson and the real estate firm representing the buyer is the buyer's agent.
Agent Represents Both Parties:
It may arise that your salesperon or his/her real estate firm also represents the person who wishes to buy your home (or represents the owner of the home you are interested in buying). This may occur (even though the salespeople are different persons) when both salespeople are employed by the same firm. When this occurs, a conflict of interest arises and the real estate firm can only continue to represent both parties when both parties consent to the joint representation and acknowledge the impact that the joint representation will have on the agent's duties. You may be asked to sign an Acknowledgement of Limited Joint Representation form(s).
The terms of that acknowledgement will set out the agreed limits of the agency duties that will be outlined in those forms. When both parties agree to limited joint representation, the salesperson and his/her firm's relationship to both parties is tempered by the requirement for fairness and evenhandedness resulting in the firm being unable to represent the interests of either party over the other. If you have any questions or concerns about joint representation and the impact it will have on the agency duties, you should discuss your concern with the salesperson involved before entering an agent/client relationship. The terms of any listing or buying contract that you sign will include your consent to the real estate firm representing both parties jointly; if that is not your desire, the agreement should be amended accordingly.
No Agency Representation:
Apart from a single agency relationship (where the firm represents one party) or joint agency relationship (where the firm represents both parties), it is possible to engage the services of a salesperson without you and the real estate firm establishing a agent/client relationship. An example of this might be when you call a salesperson in response to an ad or a sign on a property, or when you attend an open house and deal with the salesperson representing the seller. In these instances, the salesperson you ask to assist you should make it clear to you that in showing you a particular property he or she is representing the seller alone. Even though it is clear between you and the salesperson that the salesperson is not represeting you, the salesperson will still owe certian legal and ethical responsibilities to you which in clude the following:
- Honesty and Fairness in response to all of your questions concerning real property the salesperson is promoting.
- Care and Skill in providing accurate information and assistance with the offer to purchase contract, in presenting the offer you submit, in dealing with conditions, in explaingin legalities, and overall general assistance.
One of the disadvantages of dealing with the other party's agent or not having an agent/client relationship with the salesperson you have assisting you is that you cannot expect the salesperson to negotiate price and terms on your behalf or disclose all information that may influence your decision because such activity may be contrary to the best interests of the client whom the salesperson represents. If you wish to use that agent to purchase that property you can do so, provided both parties agree to that situation of limited joint representation.
Agency Disclosure
As a Realtor I am a member of The Manitoba Real Estate Association and Winnipeg Realtors (Winnipeg Real Estate Board). I am also a member of the Canadian Real Estate Association which entitle me to be called a REALTOR. A REALTOR is required to abide by a strict code of ethics and standards of business practice which serve to protect the buying and selling public. One of the ethical obligations embodied in teh standards of business practice requires that all REALTORS disclose to all parties concerned who it is they are representing in a real estate transaction, i.e., seller or buyer. More precisely the requirement reads as follows:
A REALTOR shall fully disclose in writing to, and is advised to seek written acknowledgement of disclosure from, all parties to a transcation regarding the role and the nature of service the REALTOR will provide to the client versus the customer or other party to the transaction. The REALTOR shall also disclose his or her role to the other REALTOR involved in the transaction. |
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