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 known about the purchaser. For instance, if a
vendor's agent knows a purchaser is willing to offer more for a
property, that information must be shared 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.
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.
Dual Agent
Occasionally a real estate company will be the agent of both the
purchaser and vendor. Under this "dual agency" arrangement, the
REALTOR must do what is best for both the vendor and the
purchaser. A dual agent must fully disclose information to both
the purchaser and the vendor. No information will be
confidential. A REALTOR can be a dual agent only if both the
purchaser and the 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 the 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. Purchasers and vendors will always be told -
in writing - who a REALTOR is working for.
