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15 Dartmouth Road Suite 15
Bedford, Nova Scotia
B4A 3X6 902 - 835 - 2000
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Buyers or Sellers Agency
Realtors work within a legal relationship called agency. The agency relationship exists between you, the principal and your agent, the company under which the individual salesperson who is representing you, is licensed. The essence of the agency relationship is that the agent has the authority to represent the principal in dealings with others.
Agents and their salespeople are legally obligated to protect and promote the interests of their principals as they would their own. Specifically, the agent has the following duties;
- Undivided loyalty.The agent must protect the principal's negotiating position at all times, and disclose all known facts which may affect or influence the principal's decision.
- To obey all lawful instructions of the principal
- An obligation to keep the confidences of the principal
- The exercise of reasonable care and skill in performing all assigned duties
- The duty to account for all money and property placed in an agent's hands while acting for the principal
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Limited Dual Agency
Dual agency occurs when a real estate agent is representing both Buyer and Seller in the same transaction. Since the agent has promised a duty of confidentiality, loyalty, and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.
If you find yourself involved in a dual agency relationship, before making or receiving an offer both you and the other party will be asked to consent in writing to this new limited agency relationship.
This relationship involves the following limitations;
- The Agent will deal with the Buyer and the Seller impartially
- The Agent will have a duty of disclosure to both the Buyer and the Seller except that;
- The Agent will not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the offer, or that the Seller is willing to accept a price or terms other than those contained in the listing.
- The Agent will not disclose the motivation of the Buyer to buy or the Seller to sell unless authorized by the Buyer or Seller.
- The Agent will not disclose personal information about either the Buyer or the Seller unless authorized in writing
- The Agent will disclose to the Buyer defects about the physical condition of the property known to the Agent
- the Agent may disclose all comparable property information to the Seller and the Buyer at any time.
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No Agency
You may also choose to use the services of a Realtor without having any kind of agency relationship. This might occur, for example, when you are being shown a property by the Seller's Agent.
The Realtor you choose to work with in this manner has a legal and ethical duty to provide you with accurate, honest answers to your questions and can provide all these services;
- Explain real estate terms and practices
- Provide and explain forms used
- Assist you in screening and viewing properties
- Inform you of lenders and their policies
- Identify and estimate costs involved in a transaction
- assist you in establishing your range of affordability
- Prepare offers or counter offers at your direction
- Present all offers promptly
A Realtor who is not you Agent cannot;
- Recommend or suggest a price
- Negotiate on your behalf
- Inform you of his/her principal's top/bottom line
- disclose any confidential information about his/her principal unless otherwise authorized
You should not provide a Realtor who is not your Agent with any information that you would not provide directly to his or her principal.
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Your Relationship With a Realtor
Buying or selling a home is probably the most important and potentially rewarding financial transaction you'll make in your life. So it's a good idea to take a moment and consider the kind of relationship you might be entering into with a Realtor. The more you know, the more satisfied you'll be with the results.
Responsibilities of Buyers and Sellers
As a Buyer you should;
- Carefully read all documents and understand what you are signing
- If you need specialized advise, seek other professionals such as lawyers, notaries, accountants, home inspectors, contractors, engineers, and surveyors.
Definitions
The Agent is the real estate company under which the individual salesperson is licensed.
Realtor, in Nova Scotia, refers to a member of the Canadian Real Estate Association who is licensed under the Real Estate Trading Act to trade in real estate.
The Buyer is often referred to as the Purchaser
The Seller is often referred to as the Vendor
The Principal is someone who has engaged an Agent to act for and on his or her behalf either to buy or sell a home.
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