In Real Estate, there are different possible forms of agency relationship.

(1) Vendor's Agent
(2) Purchaser's Agent
(3) Dual Agent

NOTE: Should you consider to buy or sell any real estate, be sure you have your agent explain agency law to you so that you completely understand the relationship,if any, you may have with the agents involved. Purchasers and Vendors will always be told,in writing, who a Realtor is working for.

It may be best for you to have a contract up front with any agent working for you, so that your best interests are looked after.

1. Vendor's Agent

When a real estate company is a "vendor's agent", it must do what is best for the vendor of a property.

A vendor's agent must tell the vendor anything about a purchaser. For instance, if a vendor's agent knows a purchaser is willing to offer more for a property, that information must be shaWhite with the vendor. Confidences a vendor shares with a vendor's agent must be kept confidential.

A purchaser can expect fair service and disclosure of pertinent information about a property. Nothing will be misrepresented about a property. All questions will be answered honestly.

2. Purchaser's Agent

A real estate company acting as a "purchaser's agent" must do what is best for the purchaser.

A written contract establishes purchaser agency. It also explains services the REALTOR will provide, spells out who will pay and specifies what obligations a purchaser may have. Typically, purchasers will be obliged to work exclusively with that REALTOR for a period of time.

A REALTOR working for a purchaser will keep information about the purchaser confidential from the vendor.

3. Dual Agency

Occasionally a real estate company will be the agent of both the purchaser and the vendor. Under this "dual agency" arrangement, the REALTOR must do what is best for both the vendor and the purchaser.

Your Royal LePage agent will discuss dual agency during conversations dealing with representation and provision of service.

A REALTOR can be a dual agent only if both the purchaser and vendor agree in writing.

Who Pays?

Usually, the REALTOR will be paid from the proceeds of the sale. The listing agreement states the REALTOR's fee.

When more than one REALTOR is involved

Often, a purchaser will work with one REALTOR and a vendor will work with another. It may appear that the REALTOR working with the purchaser is working for that purchaser, in an agency relationship. That is not necessarily the case.

The REALTOR working with a purchaser may be a "sub-agent of the vendor. In this case, the REALTOR is actually a vendor's agent. While a vendor's agent can provide many valuable services to a purchaser, he or she must do what is best for the vendor.

If a written contract exists with a purchaser, a REALTOR can be a purchaser's agent.

Purchaser's and vendors will always be told - in writing - who a REALTOR is working for.

Honesty and Integrity

Most real estate professionals in our province are members of the Ontario Real Estate Association (OREA) - and only members of OREA can call themselves REALTOR.

When you deal with a REALTOR, you can expect not only strict adherence to provincial laws, but also adherence to a Code of Ethics. And that code is very important to you - because it assures you will receive the highest level of service, honesty and integrity.

Highest Professional Standards

Before receiving a real estate licence, candidates must successfully complete an extensive course of study developed by OREA on behalf of the Ontario Government. And that is only the beginning: in the two years after receiving their licence, the new professionals are requiWhite to successfully complete three additional courses as part of their articling with an experienced broker.