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What is a
Real Estate Agent?
It is important to understand that in
British Columbia the person you hire to
assist you to purchase your home must be
licensed as either a real estate
salesperson or a real estate agent.
Responsibilities of the Listing and
Selling Agent
In every real estate transaction there
is a seller and a buyer. A real estate
licensee may be employed as an agent for
the seller, as an agent for the buyer, or
both.
Early in the first meeting with "a real
estate agent" the agent should provide you
with full disclosure about the nature of
his or her relationship with you, as a
buyer, and any relationship he or she may
have with the seller. The licensee is
required to provide this information and
explain its implications to you.
Your Relationship with a Real Estate
Agent
There are various types of Agency
relationships that may occur between the
buyer, the seller and the licensee. The
most common relationships are as follows:
One Agent Acts for the Buyer and One
Agent Acts for the Seller
When a seller employs a real estate
licensee to help sell his or her property,
the licensee becomes the AGENT of the
seller.
As a buyer, it is possible for you to
select a licensee to act as your AGENT. It
is in your interest to obtain the
licensee’s consent to represent you. As a
buyer, you become the PRINCIPAL and the
licensee becomes your AGENT. This licensee
is referred to as a BUYER’S AGENT.
As a Buyers Agent, he or she would owe
you the utmost loyalty, obedience and must
disclose to you any and all information
obtained from any source, which might
influence your decision to purchase.
Further, he or she may not reveal any
confidential information you have
disclosed, to another person which might
jeopardize your bargaining position.
Both Agents Act for the Seller
When a seller employs a real estate
licensee to help sell his or her property,
an agency relationship is created. The
seller becomes the PRINCIPAL and the
licensee becomes the AGENT of the seller.
This licensee is referred to as the
LISTING AGENT.
As a buyer, you may have been working
with a licensee to view new properties. It
is possible that the licensee you consider
"Your Real Estate Agent" may have a
responsibility to represent the seller and
not you as a buyer. As a buyer, you should
ensure you clearly understand for which
party a licensee is acting.
If a licensee discloses that he or she
is representing the seller, keep in mind
that any information you give him or her
must be passed on to the seller and this
could jeopardize your bargaining position.
However, any licensee acting as an agent
for a seller still has a legal duty not to
misrepresent the property to the buyer, to
exercise due care when answering questions
and to treat all parties fairly and
honestly. This legal responsibility means
that you, as a buyer, can gain the benefit
of a licensee’s knowledge and expertise
even though he or she is an agent of the
seller.
One Agent Acts in a Transaction
Where only one real estate agent is
included in the transaction, he or she
may: act only for the buyer, act only for
the seller, act as an agent for both the
buyer and the seller, but only if both
principals have agreed to allow this.
When a licensee is acting as an agent
for both the buyer and the seller, he or
she should take the utmost care to explain
their agency relationship to you. If you
are in doubt about whether any licensee
you meet during your search for a house
will be representing you or the seller,
ASK the licensee as soon as you meet!
Remember, it is possible to enjoy the
benefits of a licensee’s knowledge and
experience, regardless of whom that
licensee is representing.
Services a Buyer can expect from a Real
Estate Licensee
You can expect licensees to provide you
with such services as:
| helping you to
clarify the type of property you need
and can afford providing information
about available properties and sources
of financing
arranging appointments to view
available properties
providing accurate answers to any
questions you may have about a
specific property you are considering
explaining the forms used in a real
estate transaction and assisting you
in making a written offer to purchase
presenting your written offer to
the seller
familiarizing you with the steps
you must take to complete the purchase
after the seller accepts your offer |
Keep in mind that if the licensee with
whom you are working is the seller’s
agent, any information you give to him or
her must be passed on to the seller. It is
in your best interest to discuss with that
licensee, only what would with the seller
in person.
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