In real estate, there are three (3) different forms of agency relationships: Vendor's Agency, Purchaser's Agency & Dual Agency.

1.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 a purchaser. For example, if a vendor's agent knows a purchaser is willing to offer more for a particular 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 must be answered honestly.

2. 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 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 specified period of time.

A realtor working for a purchaser will keep information about the purchaser confidential from the vendor.

3. Dual Agent

Occasionally, a real estate company and its sales representative 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 purchaser and strict procedure must be adhered to. A realtor can be a dual agent only if both the purchaser and vendor agree in writing. Ask your realtor for more specific details.

WHO PAYS?

Usually, the realtor is paid from the proceeds of the sale. The listing agreement states the realtor’s fee.
Purchasers & Vendors will ALWAYS be told - in writing – who a REALTOR is working for.

Feel free to contact me if you wish to arrange a meeting, and I will be happy to explain Purchaser’s and Seller’s Agency Agreements in detail.