What is a Real Estate Agent?
It is important 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 Re/max Crest 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 implications to you.
Your Relationship with a Real Estate Agent
There are various types of Agency relationships that 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 buyer's agent, he or she would owe you utmost loyalty 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 a new properties.
It is possible that the licensee you consider "Your Re/max Crest
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 them 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 Transaction
Where only one real estate agent is included in the transaction, he
or she may: act only for the buyers, act only for the seller or 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 that
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 services such 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 with 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 you would discuss with the seller in person.
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