Agency Relationship
Relationship between brokerage and client, not between salesperson and client.
Salesperson works with client on behalf of the brokerage because they are
representatives of the brokerage.
Why is the Representation Agreement used?
Why is important?
Used: To document the relationship.
Important: Avoid unintended agency relationships or misunderstandings.
Salespersons Obligations to Seller Client
- Ethical and honest
- Work in client's best interest
- Full disclosure of information that is in client's best interest
- Exercise care and skill with services
- Maintain confidentiality and loyalty
- Obey lawful instructions
- Negotiate favourable terms
- Not make secret profit
- Avoid or disclose conflict of interest
Salespersons Obligation with Seller Customer
- The brokerage is not representing a customer
- The salesperson does not act on their behalf
- Customers get limited services
- Will provide information, answer questions, etc.
- Not work in your best interest, not provide advice
, - Not have any obligation of confidentiality with customer
- Act in a professional manner when interacting with customer
Seller Client's Obligation to Brokerage
- Pay remuneration
- Compensate and protect (indemnify) from loss while carrying out lawful
duties
--> Why? Because the brokerage is not responsible due to the seller client's
neglect/fault
- Any other obligations that may states out in the representation agreement
Seller Customer's Obligation
- Any obligations that may states out in the representation agreement
Seller Representation Agreement
- Brokerage represents client
- Seller = Client
- Promote the listed property
- Seek out qualifying buyers
- Use negotiation skills for the seller's best interest
- Brokerage/Salesperson owes client Fiduciary duties and is required to
promote/protect best interest because they signed the representation agreement
Buyer Representation Agreement
- Brokerage represents client
- Buyer = Client
- Find a suitable property
- Use negotiation skills for the seller's best interest
- Brokerage/Salesperson owes client Fiduciary duties and is required to
promote/protect best interest because they signed the representation agreement
Single Representation
- Only 1 client is represented by the brokerage in this transaction
- Brokerage could represent a client and provide customer service to the other
party in the same transaction
Multiple Representation
Relationship between brokerage and client, not between salesperson and client.
Salesperson works with client on behalf of the brokerage because they are
representatives of the brokerage.
Why is the Representation Agreement used?
Why is important?
Used: To document the relationship.
Important: Avoid unintended agency relationships or misunderstandings.
Salespersons Obligations to Seller Client
- Ethical and honest
- Work in client's best interest
- Full disclosure of information that is in client's best interest
- Exercise care and skill with services
- Maintain confidentiality and loyalty
- Obey lawful instructions
- Negotiate favourable terms
- Not make secret profit
- Avoid or disclose conflict of interest
Salespersons Obligation with Seller Customer
- The brokerage is not representing a customer
- The salesperson does not act on their behalf
- Customers get limited services
- Will provide information, answer questions, etc.
- Not work in your best interest, not provide advice
, - Not have any obligation of confidentiality with customer
- Act in a professional manner when interacting with customer
Seller Client's Obligation to Brokerage
- Pay remuneration
- Compensate and protect (indemnify) from loss while carrying out lawful
duties
--> Why? Because the brokerage is not responsible due to the seller client's
neglect/fault
- Any other obligations that may states out in the representation agreement
Seller Customer's Obligation
- Any obligations that may states out in the representation agreement
Seller Representation Agreement
- Brokerage represents client
- Seller = Client
- Promote the listed property
- Seek out qualifying buyers
- Use negotiation skills for the seller's best interest
- Brokerage/Salesperson owes client Fiduciary duties and is required to
promote/protect best interest because they signed the representation agreement
Buyer Representation Agreement
- Brokerage represents client
- Buyer = Client
- Find a suitable property
- Use negotiation skills for the seller's best interest
- Brokerage/Salesperson owes client Fiduciary duties and is required to
promote/protect best interest because they signed the representation agreement
Single Representation
- Only 1 client is represented by the brokerage in this transaction
- Brokerage could represent a client and provide customer service to the other
party in the same transaction
Multiple Representation
