Buyer Agency
A real estate brokerage representing the interests of the buyer. Buyer agency can be established by implication, as well as a written agreement/contract. Buyers seeking exclusive representation usually do so through an agency agreement. This relationship is the counterpart of seller agency with the same agency principles and practices applying. A representative of the buyer must use professional negotiation skills, seek appropriate properties that meet the buyer’s needs, describe the merits and defects of any selected property, keep information confidential concerning the buyer, and generally act in the buyer’s best interests. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting. The buyer and the brokerage will enter into a signed buyer agency agreement that details their relationship. The seller usually pays all commission to the listing brokerage who, in turn, forwards the appropriate portion to the buyer’s brokerage. Alternatively, the buyer’s brokerage can be paid directly by the buyer and, therefore, this amount does not form part of the sale proceeds. In most transactions, the commission to the buyer’s brokerage is paid via the listing brokerage from the proceeds of the sale. Payment procedures for the payment of commission will vary by provincial jurisdiction.
What is a Seller Agency?
Seller Agency
Establishes a relationship in which the brokerage and its salespeople represent the interests of the seller exclusively. Sellers typically give authority to a brokerage to sell their property by signing a listing agreement/contract that establishes a formal agency relationship between the seller and the real estate brokerage. This agreement/contract sets out what the seller instructs the brokerage to do and what services are provided under seller agency. Further, it provides that representatives of the seller will use their professional negotiation skills to seek qualified buyers and generally promote the listed property, while keeping information concerning the seller confidential and always acting in the seller’s best interests. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting. The seller has traditionally paid a commission directly to the agent. The listing agency then pays any brokers or salespeople within its employ and, if applicable, any co-operating brokerages involved in the transaction.
What is Dual Agency?
Dual Agency
The same brokerage has an agency relationship with both the buyer and the seller in a real estate transaction. Dual agency also occurs when different salespeople represent buyer and seller, and are employed by the same brokerage, including those who work in different branch offices. The brokerage or its representatives must advise the seller and the buyer of the dual aspect of representation and must be impartial when representing both parties. Both buyer and seller must give their informed consent to this form of representation.
What is a Sub-agency?
Sub-Agency
An agency relationship whereby an individual is empowered by an agent to act on behalf of a principal of that agent. The sub-agency concept extends to the authorization of co-operating brokerages to work on behalf of the seller. Traditionally, Multiple Listing Services were based on the automatic offering of sub-agency by the listing broker to all other members of the real estate board. The use of subagency has gradually diminished given the growing popularity of buyer agency
Why use a Real Estate Agent?
Here are the advantages of working with a sales agent:
When you have decided to buy or sell a home, the services of a qualified real estate professional are of utmost importance. The ideal sales agent will have a good working knowledge of local real estate market conditions, be prepared to deliver a high standard of service to customers, and have the support of a large real estate company. Most importantly, a good agent will save you time and money.
