Buyer Agency
Realtors are governed by the legal concept of “Agency.” An Agent is
legally obligated to look after the interests of their client. A Real Estate
Company or Representative may be your Agent if you have clearly established
an agency relationship with that realtor. Unfortunately, many clients
mistakenly assume such an obligation exists when it does not. It is
important to understand what comprises a Buyer Agency Relationship, and how
entering such an agreement with Nancy will help you find the best possible
home.
Agency: A written contract, called a "Buyer Agency Agreement", establishes Buyer agency. It also explains services the company will provide, establishes a fee arrangement for the Realtor’s services, and specifies what obligations a Buyer may have. A Realtor or Real Estate Company acting as a Buyer’s Agent owe the Buyer complete competence, diligence, full disclosure, obedience, loyalty, confidentiality, and complete accounting. The Buyer’s Agent must always do what is best for the Buyer. In the absence of a Buyer Agency Agreement, the realtor is only required to treat the Buyer fairly and truthfully. Typically, Buyers will be obliged to work exclusively with that company for a period of time.
Although confidential information about the Buyer cannot be disclosed, a Seller working with a Buyer’s Agent can expect to be treated fairly and honestly. It is important that you understand who the realtor is working for. If the Seller and the Buyer have the same Agent, this is “Dual Agency”; the Realtor must act in the best interests of the Buyer and Seller, to the best of his or her ability, throughout the transaction.
As a prospective Buyer, it is crucial that you understand every aspect of the Agency Relationship between you and your Agent. That’s why agency disclosure is included in a self-imposed Code of Ethics which is administered by the Real Estate Council of Ontario. The Code requires realtors to disclose in writing the nature of the services they are providing, and encourages realtors to obtain written acknowledgement of that disclosure. The Code also requires Realtors to enter into a written agency agreement with any Sellers or Buyers they are representing.
By entering into a Buyer Agency Agreement with Nancy, your search for a home becomes clearer, more professional, and better organized. Taking the time and effort to make the right choice regarding your Buyer Agency relationship is one of the smartest things you can do to improve your home-buying process.