- You know the sales representative is working for you
- The sales rep (agent, REALTOR®) owes a fiduciary to you. Loyalty, confidentiality, full disclosure and accountability**
- Purchaser may not have to pay the sales rep (buyer broker) as he/she may be paid through the listing broker as is the normal procedure with sub-agency
** You have signed an exclusive contract with the Buyer Broker for the time frame noted in the agreement on any purchase during that period. Under the terms of the agreement with the sales representative (Buyer Broker) you agree to provide financial information to ensure you qualify.
Why Agency Disclosure?
Why did CREA (Canadian Real Estate Association) think it was necessary and make it mandatory?
- In the true agency relationship sales representatives were working for the vendor as a result of the listing agreement contract and were paid by the vendor.
- There was a great deal of confusion in the eyes of the consumer as it often appeared as if we were working for the purchaser(s) when we brought an offer in on their behalf.
- Many purchasers thought we were working for them and that they were our clients.
- Agency disclosure will hopefully alleviate the confusion and offer the purchaser the choice of being "customer" or "client".
- Many real estate boards have changed their by-laws clauses & procedures to provide for payment to still be made through the listing broker if a purchaser chooses to be a client under a purchaser’s agency contract (Buyer Broker).
- A purchaser can choose that method of payment which is what the industry is used to OR agree to pay their agent directly.
With Dual Representation, rights of confidentiality are waived and you waive rights of "Conflict of Interest". It is advisable not to reveal information that you would not want represented to the vendor in the event that you are putting in an offer on a property listed with the listing broker (this would be known as Dual Representation).
Clearly, the benefits of having us represent you as Buyer Representatives far surpass any other option. We look forward to being on your team!