Buying a Home? Selling a Home?

Whether you are a buyer or a seller,
you should read an explanation of the relationship
between you and a REALTOR®.

Realtor's work within a legal relationship called agency. The agency relationship exists between you, the principal and your agent, the company under which the individual salesperson who is representing you, is licensed. The essence of the agency relationship is that the agent has the authority to represent the principal in dealings with others.

Agents and their salespeople are legally obligated to protect and promote the interests of their principals as they would their own. Specifically, the agent has the following duties:

1) 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.

2) To obey all lawful instructions of the principal.

3) An obligation to keep the confidences of the principal.

4) The exercise of reasonable care and skill in performing all assigned duties.

5) The duty to account for all money and property placed in the 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.

Limited Dual Agency

Dual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Since the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.

If you find yourself involved in a dual agency relationship, before making or receiving an offer both you and the other party will be asked to consent in writing to this new limited agency relationship.

This relationship involves the following limitations.

a) The Agent will deal with the Buyer and the Seller impartially;

b) The Agent will have a duty of disclosure to both the Buyer and the Seller except that;

i) the Agent will not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the Offer, or that the Seller is willing to accept a price or terms other than those contained in the Listing;

ii) the Agent will not disclose the motivation of the Buyer to buy or the Seller to sell unless authorized by the Buyer or the Seller;

iii) the Agent will not disclose personal information about either the Buyer or the Seller unless authorized in writing;

c) The Agent will disclose to the Buyer defects about the physical condition of the Property known to the Agent.

d) The Agent may disclose all comparable property information to the Seller and a Buyer at any time.

e) The Agent will not be required to disclose to the Buyer or Seller confidential information obtained through any other existing or former agency relationship.

Definitions

The Agent is the real estate company under which the individual salesperson is licensed.

REALTOR®, in Nova Scotia, refers to a member of the Canadian Real Estate Association who is licensed under the Real Estate Trading Act to trade in real estate. They also subscribe to a strict Code of Ethics and high standard of professional service.

The Buyer is often referred to as the Purchaser.

The Seller is often referred to as the Vendor.

The Principal is someone who has engaged an Agent to act for and on his or her behalf either to buy or sell a home.