Realtors work within a legal relationship called agency.
The agency relationship is between, you the client, and your
agent, the company with which the Realtor is licensed. Most
Realtors use a blue brochure titled Working
with a Real Estate Agent to disclose the nature of the
agency relationship with their client.
Realtor can act for a seller or a buyer, or to a limited degree,
both. Whomever they represent, Realtors have a legal obligation
to uphold the integrity of their clients, while protecting
and promoting their interests.
Specifically, the agent has the following duties:
- Undivided loyalty. The agent must protect the principal's
negotiating position at all times, and disclose all known
facts which may affect or influence the principal's decision.
- To obey all lawful instructions of the principal.
- An obligation to keep the confidences of the principal.
- The exercise of reasonable care and skill in performing
all assigned duties.
- The duty to account for all money and property
placed in an agent's hands while acting for the principal.
You can expect competent service from your agent, knowing
that the company is bound by ethics and the law to be honest
and thorough in representing a property listed for sale. Both
buyer and seller can be represented by their own agents in
a single transaction.
In order for your Realtor to list your property for sale on
the Multiple Listing Service® (MLS®), the Real Estate
Board of Greater Vancouver requires completion of a listing
agreement. By signing the listing agreement with you, your
Realtor has committed to uphold the obligations mentioned
above. The listing agreement also states the amount of compensation
that the seller will pay the Realtor.
The contract of purchase and sale is initiated when an offer
is made by the buyer to purchase the seller’s property.
The contract outlines the terms and conditions of the offer,
such as offer price and any subject conditions. The seller
may reject the offer or make a counter offer. Once all terms
have been accepted and both the seller and the buyer have
signed the contract, each party is legally bound to fulfill
the conditions of the contract.
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