|
|
|
DUTIES AND RESPONSIBILITIES OF A REALTOR A Realtor has an duty and obligation, at the soonest opportunity, with any individual that enquires about real estate, to enlighten that person in the areas of Agency. The Realtor MUST ascertain the type of service to be afforded that person by explaining the different relationships that are available. Failing to do this one simple task is not only unethical, but may sometimes result in unintentional but disastrous implications on the parties to a transaction as well as the Realtor themselves So here is an explanation of the various choices that are available To the public and maybe a little more than you would normally get if you asked... To Be or not To Be... A CUSTOMER As a Customer, there is no obligation on the Realtor to do anything but provide a service such as explaining the current market conditions or maybe provide specific basic detail facts about a property. The Realtor is not supposed to give any opinion or comment on any particular property listed or otherwise. The Realtor would not ask anything about any information of the Customer such as their down payment or how much they are looking to spend on a piece of property. If the Customer asks the Realtor to make appointments to view properties, the Realtor may do so if they choose to, but in all cases they must show all of the properties as a Sub-Agent of the Sellers. The Customer is really on their own and are totally un-represented which disallows them from learning any more than superficial information about most of the things they should know if they were to buy a property. To Be or not To Be... A CLIENT The Realtor’s Code of Ethics requires that the relationship between a person and a Realtor must be determined at an early point in the association in order for the Realtor to act appropriately and accordingly. This point of arrangement was instituted nation wide because the public at large have shown that they believed their Realtor was working for them when in fact the Realtor was not. Now the public have a choice and it is up to the Realtors to make their positions clear once and for all. AGENCY AGREEMENT IN WRITING Not only must the Realtor explain all the differences to you, but the status that is finally determined in the Type of Agency must be set out in writing. Real estate boards, associations and regulating authorities have prepared the industry with prescribed forms for this Agency declaration and it would behoove any person thinking of buying or selling to commit to such an Agency agreement. By signing a Listing Agreement, a seller commits exclusively to the Realtor of their choice, for the purposes of acting as their Agent in the ultimate sale of their property. By signing a Buyer’s Agency Agreement, a buyer commits exclusively to the Realtor of their choice, for the purposes of ultimately acting as their Agent in the purchase of any property. For a buyer to go from Realtor to Realtor signing more than one Buyer’s Agency Agreement will obligate the buyer each time for the specific geographic area as stated on each form. If the same geographic area appears on more than one Buyer’s Agency Agreement, then the first form may take precedence depending on the circumstances. No doubt, this disregard for the process may soon complicate any transaction the buyer chooses to undertake. CAUTIONARY MEASURES It is therefore significant for the buyer to choose their Agent carefully and having done so, be prepared to remain loyal or maybe risk perhaps other financial obligations. SELLERS AGENT By signing the Listing Agreement with the Realtor you have obligated that Company (Broker) to represent you and act on your behalf, according to your instructions, regarding the sale of the specific property. Remember, it is the Company that is the Agent and not the individual salesperson who sits in your living room drinking your coffee and patting the dog. However, the bulk of the effort and work will be the responsibility of the salesperson patting the dog because he/she is an Independent Contractor and the one who must spend their own money to market and promote your listing. It is a wise choice for you to get any promises of the intended marketing plan in writing with specific dates of what ever occurrences have been promised. i.e.: Open Houses, Local ads, Regional ads, Virtual Tours, Signage and any Special Promotions that may have been mentioned. Hopefully you have established a trust in this Realtor because when the time comes for negotiating an Offer on your property, you will need to have faith in their advise and counsel. If this does not exist in the beginning then you shouldn't be signing with this person. It is as simple as that. BUYERS AGENT You have scrutinized a few Realtors and have decided on one who you feel can best represent your interests in locating, showing, advising and educating you in the purchase of your next home. Only if you are satisfied with all of that criteria and have a good rapport with this Realtor, should you enter into a Purchaser's Agency Agreement. Again, you are signing with a Company who is the Agent but it is the individual you have come to trust and have faith who is the one who will be having the personal contact with you throughout the process. Who they are is paramount to the success of your mission. Because of this written Agreement, both the individual salesperson and the Company have specific fiduciary obligations to you that must be followed irrespective of their own interests. Stay with this individual only if you are confident they are doing all they can do to follow your instructions and locate the property you are seeking. Otherwise, it behooves you to make a change because you may be missing out on exactly what you want by staying with a dud. Oh yes, they are prevalent in this industry also. As with the Seller, you must have a good rapport with your Agent because when you are in the throws of submitting an Offer on a property, you want to know you are getting the most professional and competent advise possible. SUB AGENT (???) When buying, you really don't want who you think is your Agent to be declaring this in any transaction because it means he/she is not entirely on your side but actually a Sub Agent to the Seller. It would mean that all of those obligations, loyalties and fiduciary duties belong to the Seller and not you. There may be very rare circumstances where this type of Agency may be required but be wary of the Agent who professes to assume this position on a regular basis. I am at a loss as to the continued existence of the term “Sub Agency”. DUAL AGENT (<->) Actually, this is a legal but most precarious position for an Agent to find themselves in and it appears in various forms. Remember the Company is the Agent so all of the listings of property that any Company has will be subject to the status of "Dual Agency" when sold by any of the company's own in-house sales staff. The industry has been struggling with this one for a few years now because of the "Dual" implications and for all intents and purposes it is seemingly semi-effective provided the fine line of Agency is walked with integrity. Usually, two Realtors working for the same firm and selling a Company listing and representing their respective clients (Seller or Buyer) do a good job with regard to their personal Agency obligations. In simple practical terms, it is almost the same as when they sell another Company's listing but in this situation the two Realtors of the same firm must disclose the "Dual Agency". A more cautious approach arises when an individual Realtor gets an Offer from his own Buyer on his own listing. The fact is, some people prefer to deal with the listing Agent of a property because (they think) the Realtor will have to drop his commission and they will get a better deal. This is not always the case. What the buyer may gain in that eventuality is offset greatly by the value of the exclusive representation that may have been possible with their own Agent and the prevention of subsequent litigation should it occur. Many Realtors are quite comfortable with this Agency and are more than confident in their professional competence than others may be or are. It is always your choice as buyer or seller to make that determination. UNDISCLOSED AGENCY It is exactly as it looks and sounds. The Agent's sales representative is obviously unsure of what he/she is doing, they haven't a clue who they working for and therefore fail to disclose or acknowledge any form of Agency and hope it is not noticed. The industry is making it much more difficult for this kind of person to survive in the business by mandatory education and increasing the public awareness. This Web Site was created specifically for the benefit of the public as to what a consumer should expect in a professional competent Realtor. IMPLIED AGENCY By the actions demonstrated to or from another person a Realtor may be considered to have an "Implied Agency" and would therefore be subject to the Law of Agency as it would apply to the situation. As an example, if a Buyer was to confide their personal or financial status about themselves to a Realtor it would indicate that the Buyer showed an element of trust and therefore implied a confidentiality and in this real estate context confirming the existence of an Agency. Realtors must be alert to who they owe an allegiance to and be prepared to accept whatever Agency that they are willing to undertake to the best of their ability or not take it at all. It is generally the public who are not prepared to obligate themselves to any one Agent in writing and randomly use a new Realtor on each excursion into the deep, murky and dangerous waters. Forever on a three hour cruise and find themselves stranded on an isolated island of poor or unsure representation. Interviewing full time real estate professionals and feeling comfortable with their experience, knowledge, skills and compatibility with you will pay huge dividends not only when you are contemplating buying but also when you decide to sell. More Information you Should Know Realtor: def. - is a trademark which identifies a real estate professional, who is a member of a the National Association of Realtors (NAR)(US), and/or The Canadian Real Estate Association (CREA)(Ca)and, as such, subscribe to a high standard of professional service and to a strict Code of Ethics. In some areas today, the real estate industry is progressing to the status of becoming a self-regulating body. This means that the licensing and implementation of the many laws governing the industry fall under a separate consumer oriented entity that also oversees the mandatory upgrading education of it's members. Each Province in Canada and each state in the USA may vary in the general organization of the real estate industry but the overall concept is consumer protection based. Errors and Omissions Insurance is becoming a mandatory requirement for all registered Realtors because of the delicacy and nature of the increasing responsibilities and duties imposed on Realtors. Did you know that in some areas of the country, it still may be possible for a registrant to not be required to be members of NAR or CREA? Nor are they required to be members of any Real Estate Board and then, it follows, they would have no access to the MLS Listings or database system for their trading area. These people may be registered under the laws of their location but in fact are not allowed to call themselves Realtors and therefore do not have to subscribe to the Code of Ethics. Unless you are buying or selling soon, most people are not interested in the month to month statistics that seem to be taken out of context by the media and reported as today's news. Have you ever noticed, by the time all of the information is correlated and gets to the public, several weeks or months have passed and those conditions or trends are no longer current. The report is always on what happened statistically two or three quarters ago. That information could therefore be more than 6 months old and relatively useless for today’s savvy consumer who wants to know present conditions of the marketplace. When you are seriously interested in what is happening in your own neighborhood market for buying or selling, suddenly the genuine interest become almost an obsession to know all there is to know. It is usually at this point, most people make a crucial decision that could effect not only their financial position but where they will be living for the next few years. Today, it is not only chic to have a support group of professionals with proven track records of handling your personal welfare, it is also smart and saves you money big time. This support group is simply a few of the people that you have given your personal business to over the years and you tend to look to them for advise in their respective fields such as your lawyer, family doctor, financial advisor, dentist, banker, or even the auto mechanic. Did I not mention your Real Estate Agent??? Doesn’t it make sense to have a friendly and personal rapport with a professional Realtor who will be representing your interests in what is usually the most valuable asset purchase, your home. Someone you can call at the drop of a hat to ask a silly question of about the house down the street that just sold. Or maybe your waiting for a specific home to come on the market that would motivate you to move immediately and your Realtor contact is keeping you informed for what seems like years. You could add any number of professionals to your personal support group list, but make sure a Realtor is one of them. Your Realtor is not only a trained Real Estate Professional, but depending on how long they have been in the business, have a wealth of personal knowledge from their involvement of literally hundreds of local real estate transactions. Most Realtor’s will always be informed to answer your questions concerning any real estate related matter and they welcome your call. Choosing a Realtor may be the first challenge in your quest to seek exclusive representation as referred to in Agency101. As with any business you decide to give your money to in exchange for services, it is wise to shop around and even talk to friends and associates in whose judgment and opinion you trust. Find out which Realtor they used the last time and how did they rate the performance. Sometimes it is an instantaneous acceptance of that special charisma you just know that you can trust this particular Realtor with your life. Sometimes however, it is not and hopefully, if you do your homework, you will know this also. So, before you make any impulsive moves to hire a Realtor, take the time to interview each one that you have researched with the total understanding that you must eventually trust their advice and in turn remain loyal to them through thick and thin. After all, they will be providing you with free consultations during those in between times when you are not buying or selling based on the understanding that they are part of your personal support group. The Real Estate industry is based on the principle that all registrants are created equal and accept for additional educational courses and specific designations, you should expect to receive a universal basic level of expertise from any individual. It would be appropriate to caution you to say that some are more equal than others in this regard and that aspect will become glaringly clear as you acquaint yourself with various candidates. Since the individual Realtor is the one person with whom you will be dealing with throughout this experience, it is obvious that the Brokerage Firm through which they are licensed may only be a secondary consideration. The evolution of the business over the past two decades have by and large changed the position of the individual Realtor from employee of the Brokerage Firm to Independent Contractor who is required to place your interests above their own in all matters concerning real estate. Not only is the Realtor out-of-pocket for the day to day expenses of running of his business but they are required now, to have basic but expensive Errors and Omissions Insurance, much like other professionals in the event or oversights. Remember, all Realtors have access to the very effective MLS Data System but it is indeed the degree of the personal commitment and promises made by the individual Realtor you hire, that will ultimately assist your buying or selling and not the flash and pizzazz of a large corporate entity or their copious franchise operations, whose only interest is promoting their shiny image while seeking to increase their bottom line. The fact is, the multi-corporation giants who have permeated the industry of late, are quick to say that they are primarily in the people business. But that actually refers to those thousands of Realtors who pay exorbitant monthly fees for the slick newspaper, corporate TV and radio ads designed to give the public a highly improbable assumption that all of their Agents are equal and the best. Real estate, as an industry, over the past twenty or so years has grown by leaps and bounds and a lot of the progress has been benefiting the consumer by protecting their rights in tightening the controls under which a Realtor must do business. Building a strong rapport, trust and mutual loyalty with a reputable and knowledgeable Realtor is as valuable as the equity in your home. You will only come to appreciate this when you have gone through the heat of the negotiations and consummated the transaction with the guidence of an experienced and competent professional Realtor. If you want to digest more real estate dogma that may open your eyes further then go HERE Back to www.realestate1o1.com |