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 Working With A Real Estate Agent
The following document provides general information on your working relationship with a real estate agent. This "brochure" is intended to explain to you (either a buyer or a seller) the different types of agency relationship you may have when you choose to work with a real estate licensee. If you hire an agent to help you sell or purchase real estate you will be asked to acknowledge receipt of this brochure:
Dual Protection
When you choose to work with a real estate agent you not only enter a business relationship with a licensee. Your working relationship will involve BOTH an individual licensee AND a real estate company. In British Columbia, an individual licensee must register under a licensed real estate company (the "employing company") in order for the individual licensee to conduct business as a "commission salesperson". In most cases the individual licensee is working as an "independent contractor" under the name of the employing company. In effect, when you deal with an individual licensee, your transaction will be monitored by the licensee's employing company, who is responsible for the activities of all of its licensees. Under this system, you as a consumer will have extended protection the law would provide.
Be An Educated Consumer!
When you plan to sell or to buy real estates, it is beneficial to you to understand the nature of the working relationship between you and a licensed real estate agent, whether you plan to hire one or not.
An agent has the legal duties to promote and protect the interest of the agent's principal. When you see an advertisement of a real estate agent selling a property, the agent is most likely working for the best interest of the agent's principal, that is, the owner of the property that is for sale. Shouldn't YOU be cautious when you plan to make a large financial commitment in your life time and you approach someone you don't know, and in fact someone who is primarily working for the interest of YOUR OPPONENT?
Whether you plan to hire the service of a real estate agent is all up to you. However, you should be aware that an agency relationship does not create automatically! By showing a property to you (buyer) a licensee does not automatically become your agent. It is therefore vital for you to discuss agency relationship before you rely on the licensee. Make sure you document it if the agency relationship is properly established (i.e., by executing an Exclusive Buyer's Agent Contract).
Remember, the "legal duties" of a licensee are all you need to protect you in your real estate dealings!
Dual Agency
"Dual Agency" is a situation in which the sellers and the buyers are BOTH represented by licensee(s) of ONE agency company. There could be two scenarios where dual agency exists:
- One licensee is involved. This is a situation where one licensee of one agency company representing both the sellers and the buyers in a transaction.
- Two or more licensees are involved. This is a situation where one licensee is representing the sellers and another licensee is representing the buyers, while both licensees are registered under the same agency company.
Since individual licensees are working as "independent contractors" under their employing company, one should see the differences between
- "ONE licensee of the same company representing both the seller and the buyer", and
- "TWO licensees of the same company with one licensee representing the sellers and the other licensee representing the buyer".
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