Real Estate Agency - Calgary Real Estate
Note: Real Estate Agency is a complex issue but a very important one that you should fully understand. I will give a brief outline here to get you started but if you are considering buying or selling Calgary real estate, you should download the Agency Relationships Guide and watch the video below, or on YouTube.
Perhaps you have heard the term "agency" when speaking about real estate. Agency is a relationship that is established when two parties agree to have one party act on behalf of the other. Real Estate Agency - Calgary Real Estate (and all of Alberta Real Estate for that matter) is that relationship between the Client (buyer or seller) and the brokerage and its members if it is a "common law" agency, or, in the case of a "designated Agency" brokerage, between the Client and the designated agent(s). Confused? Suffice to say that is is the relationship between the Client and the real estate agent. I won't get into the common law brokerage or designated agency brokerage here. It is described much more thoroughly in the Agency Relationships Guide which can be downloaded or viewed by clicking on the image below.
It is important to note that you are not in an agency relationship when you first make contact with a REALTOR. Therefore, you should be careful not to form an agency relationship until you decide to have the Brokerage or designated agent act on your behalf, at which point you will be asked to sign a written service agreement.
Sole agency is the relationship where one industry member acts as the Agent on behalf of one party in a real estate transaction, either the Buyer or the Seller. Agents are obligated to protect the interests of their Client and owe the following fiduciary duties:
- Undivided Loyalty
- Full Disclosure
- Reasonable Care & Skill, and
- Full Accounting
Again, more details are found in the Agency Relationships Guide which can be downloaded by clicking the graphic above, or HERE.
Transaction brokerage occurs when one brokerage or Agent represent both the Buyer and the Seller in a transaction. Transaction Brokerage is permitted only with the fully informed, voluntary consent of both parties.. Written consent by all parties must be obtained BEFORE this relationship may occur. The Agent will now act as a facilitator and services will be provided to both parties where the interests of both are met in an even handed, objective and impartial manner, without providing confidential advice or advocating on behalf of one party over the other.
Should you choose to not have an agency relationship, you may choose "Customer Status". If you do, the Brokerage or Agent is not acting on your behalf, and does not owe you fiduciary duties. Duties to a customer are limited to honesty, reasonable care and skill and not knowingly provided false or misleading information. There is also more on this in the Guide.
Real Estate Agency is a complex but vet important issue that you need to understand fully. Know what duties you are owed and conversely what duties you owe. Know what type of agency relationship you have. The Real Estate Council of Alberta (RECA) has produced a video to go along with the Guide. Click on the image below to view the video.
Thank you for taking the time to read my blog about Real Estate Agency - Calgary Real Estate