Giovanniello Bellefeuille

If you are looking to buy or sell a home then one of your first jobs will probably involve finding a real estate agent to assist you. A real estate agent, or realtori, is a person who will act on your behalf in the sale or purchase of property. A realtor is responsible for a number of things, and depending on whether they are working for the seller or the buyer, may include:

•    reviewing and identifying relevant property listings
•    accompanying buyers to property sites and advising on the value of the property
•    advising on local market conditions
•    promoting the sale of the seller’s property
•    helping to decide on the conditions of sale
•    acting as an intermediary in negotiations
•    drawing up the agreement of purchase and sale.

Although you are not legally required to employ the services of a real estate agent, most buyers and sellers do decide to hire a professional. Once you have found a realtor you are comfortable with, you will generally be asked to sign a seller representation agreement (i.e. a listing agreement.) 

The seller representation agreement is a binding contract between the seller and the agent’s real estate companyii. The agreement provides the realtor with an exclusive listing of the home for a fixed period of time as well as the right to list the property on the Multiple Listing Service (MLS)iii.  

The listing agreement includes such factors as:

•    the terms under which the seller is willing to sell the home 
•    the commission to be paid to the realtor
•    the length of the hold over periodiv.

The seller representation agreement is not an offer to sell and there is no legal requirement to accept any offer. 

In the case of the buyer, he or she may be asked to sign a Buyer Representation Agreement which will spell out a variety of terms, including:

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•    the property type and geographic location for your potential new home 
•    the services to be provided
•    the commission that may be payable to the brokerage
•    the duration of the agreement.

Once you have signed such an agreement, you become a client of the brokerage and they have a special duty to follow your instructions, protect your confidential information and promote and protect your best interests.

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As a buyer, there is a second type of legal agreement that you may enter into, one that does not offer as much protection. It is called a Buyer Customer Service Agreement. With this second type of agreement, the buyer is not a client but rather a customer. In this latter scenario, the realtor does not have an obligation to get the buyer the best possible deal on a particular property since the realtor’s primary obligation is to his/her client, i.e. the seller.

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Before you officially begin dealing with a real estate agent, whether as a buyer or as a seller, be sure you understand each of your roles, rights and duties and be certain that you understand the content and implications of any agreement you are asked to sign.

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Finally, you will need a lawyer to complete the real estate transaction. We have extensive knowledge and experience in real estate law and would be happy to assist you.