Want A Free Copy Of My Ebook Click Here To Get Instant Access

Agency Relationship

After reading this article, “BC couple ‘tricked’ into buying unlivable house” I really felt for the BC couple and decided to write this blog/article to address the different agency relationships between REALTORS® and the public. From the article, the BC couple was told that they were in a customer relationship which they thought meant that the REALTOR® was working on behalf of their best interests. I hope the information below will help to clarify some questions you may have about agency relationships:

First of all, your REALTOR® should offer you the “Working with a Realtor” brochure, explain these agency relationships with you and obtain your initials stating that you have read and understand the brochure.

There are 3 types of agencies.  Here’s a brief description of each.

DESIGNATED AGENCY:  REALTOR® represents client A.  He is to represent client A just like a lawyer or doctor represents client A.  Fiduciary duty, full disclosure, confidentiality, client’s best interests, loyalty towards client A and perform all due diligence related to real estate transactions client A has asked the realtor to perform.  Designated agency is classified as a CLIENT RELATIONSHIP.

LIMITED DUAL AGENCY:  Suppose REALTOR® represents client A to sell client A’s home.  Customer B walks into the home, doesn’t have a REALTOR® representing him/her, decides to buy the home and wants to write an offer.  Client A’s REALTOR® can represent both the buyer and the seller but ONLY with both the buyer and seller’s written approval.  In this way, the REALTOR® can have a CLIENT RELATIONSHIP with customer B, provide fiduciary duty, full disclosure, confidentiality, etc…  There are a few limitations of course.  The REALTOR® cannot disclose (without permission) a few things to either clients including:

– client A’s personal information to client B or vice versa

– whether the buyer is willing to pay any other price other than what’s listed on the contract

– whether the seller is willing to sell at any other price other than what’s listed on the contract

– client A’s motivation to sell AND client B’s motivation to buy

A limited dual agency also occurs if the REALTOR® wants to represent 2 buyers wanting to buy the same property and in addition to above, the REALTOR® cannot disclose (without permission) the amount or terms of one offer to the other buyer.

Limited dual agency is classified as a CLIENT RELATIONSHIP.

NO AGENCY:  If customer B walked into the house, wanted to buy, but client A did not allow the REALTOR® to have a limited dual agency or customer B did not want the realtor to represent him/her, customer B can either hire another REALTOR® to represent him/her or ask for a NO AGENCY RELATIONSHIP which means that client A’s REALTOR® will write up the offer and contract for customer B, but offer NO advice or professional opinion regarding price or negotiations, etc…

No agency is classified as a CUSTOMER RELATIONSHIP.

For more information, take a read of the actual “Working with a REALTOR® brochure” HERE and Feel free to contact me if you have any further questions.

What Our Clients Say

“I think Gary’s a very professional Realtor, that’s not just coming from me as a Mentor, it’s because I’ve worked with him, he truly cares about the client… You want to work with someone who is caring.”

I know so much realtor, but he’s the best one. Once I talk to him about the investment, he’s thinking, “Okay, this is the only person I trust.” Usually I just refuse to have any connecting with a salesperson or a realtor, but he’s only the exceptional one. Make friends with him.”

“It’s because of [Gary’s] knowledge, his insight, the way that he analyzes and he’s able to put real estate in perspective… he really is genuinely interested in me and what i’m looking for, that blew my mind… because he knows the market and he specializes in the luxury market he’s really able to provide that insight”

“The word professional sums up Gary, extremely knowledgeable… extremely honest, he didn’t sugar coat things… Gary will get it done, he’s done it for me, he’s done it for lots of people I know.”

Let Me Help You Achieve Your Real Estate And Financial Goals

Real Estate investing can be a long and arduous task. But it doesn’t have to be.

With my help, and my team, we’ll make sure the process is smooth, straightforward, and as simple as possible for you. As an award-winning REALTOR®, my team and I work with diligence to help you achieve your goals. We’ll deliver exceptional results with attentive care.

So whatever your real estate goals are, 
Let’s Make it Happen.

It’s what we love to do.

WordPress Image Lightbox Plugin