Agency:
A relationship in which the agent is given the authority to act on behalf of another person (principal). In real estate transactions, usually the seller is the principal, and the Broker (company) is the agent. It is also becoming common for the Buyer (principal) to enter into an agency relationship with a broker (company). In an agency relationship, the principal delegates to the agent the right to act on his or her behalf in business transactions and to exercise some discretion while so acting. The agent has a fiduciary relationship with the principal and owes to that principal such duties as Competence, Obedience, Good Faith & Full Disclosure, and Accounting.
Sales Representative/Associate Broker:
A licensed representative who assists the buyer or seller with advice and information about current market conditions, and helps to negotiate the sale/purchase. Sometimes referred to as an "agent", but the "agent" truly is the company.
Buyer Broker/Agent (Buyer's Agent):
A broker (company) who represents only the buyer (principle) in a transaction, regardless of whether compensation is paid by the buyer or the listing broker through a commission split. With prior informed written approval, the Buyer Broker can act as a dual agent.
Listing Broker/Agent (Seller's Agent):
A real estate agent who lists a property. The listing agent is typically the agent of the seller. With prior informed written approval, the listing agent can act as a dual agent.
Selling Representative:
A real estate agent who sells a property. The selling person may be acting as (1) the sub-agent or listing agent of the seller; (2) a buyer's agent; or (3) a dual agent. (Also called a cooperating agent).
Dual Agency:
Representation of two principals (usually buyer and the seller) in the same transaction by the same agent (company). Since there is an inherent conflict in Fiduciary Duties to two different principals, Dual Agency, at best, is a risky undertaking. It is required that Dual Agency must be disclosed to all parties to the transaction. Caution: This form of agency offers a reduced level of service.
For More Information see the Ontario Real Estate Association's Brochure
Working with a Realtor
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