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Agency Relationships


When working with a Realtor it is important to understand the nature of representation that a Realtor provides to clients, as well as services offered to customers. Agency is a relationship between two parties in which one party (the agent – the brokerage) accepts responsibility for representing the other party (the principal – buyer or seller) in dealing with a third party. The Canadian Real Estate Association (CREA) requires Realtors to disclose Agency Relationship to a potential client at the earliest time possible. Here is a brief description on single representation (seller or buyer) and multiple representation.


Single Representation

Buyer Relationship to Realtors

If you are a buyer looking for representation, a buyer agency agreement is signed which establishes you, the buyer as a client. This agreement explains the services the company will provide and specifies what obligations a buyer may have. A buyer works with said company for a period of time and establishes a fee arrangement so that in return a Realtor gives professional advice, negotiates favourable terms, maintains confidentiality, provides information and performs other duties to their client, the buyer.


The relationship between a buyer customer to a realtor whos client is the seller is still important but will be seen as a third party interest. The buyer customer however can still expect to be treated fairly and honestly. Realtors will always answer questions honestly and provide all pertinent information about a property to buyer customers.  


Seller Relationship to Realtors

If you are looking to sell your home with representation, a listing (or representation) agreement establishes seller agency. The document explains services the company will provide, establishes a fee arrangement and specifies what obligations a seller must have.  Realtors will keep several obligations to their client including keeping confidential information, relay pertinent information about the buyer, negotiate favorable terms, and ensure honesty throughout the process.


A realtor working with a buyer as a sub-agent is ultimately working with the seller’s best interest in mind. However, a realtor working with a buyer will work with the buyer’s best interest in mind but may still be compensated by the seller through provisions made to the listing agent.


Multiple Representation

Occasionally a real estate company will be the agent for both the buyer and the seller. The buyer and seller must consent to this arrangement in their listing and buyer agency agreements.  The agreement specifically describes the right and duties 





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