Your real estate professional must explain the responsibilities and limits of relationships you can have with said professional when you purchase property in Alberta.
To review:
- A real estate brokerage can act as your agent.
- An individual real estate professional can act as your agent.
- You can be a customer to a real estate professional.
- In a conflict of interest when the buyer and seller have the same agent, a real estate professional can facilitate a transaction between two sides with their permission.
The Consumer Relationship Guide details these relationships and is available here
As of July 1, 2014 significant changes have been implemented in the real estate industry to establish a more equitable framework. Buyers no longer navigate the process alone; instead, with a dedicated Real Estate Professional acting as a buyer's agent, they benefit from a comprehensive suite of professional services.
Via a written Buyer's Agreement (Exclusive and Non-Exclusive) the real estate professional pledges allegiance to the homebuyer, ensuring undivided, confidential representation. Equipped with tools, industry knowledge, vast connections, negotiation expertise, and seasoned experience, a buyer's agent plays a crucial role in securing a home at the right price, especially for those lacking these essential skills.
How does a buyer's agent assist you?
Operating in a professional and ethical manner, a buyer's agent prioritizes the buyer's well-being, emphasizing care, confidentiality, full disclosure, and accurate accounting. Responsibilities include showcasing available homes, highlighting property features, offering financing insights, and managing the offer-to-purchase process. When a Buyer's Agency agreement is established between you and the Agent, it is you, as the buyer, who benefits from the representation. Under the agreements of Buyer Agency, you enjoy the following advantages:
A sole agent acts for either the buyer or the seller in a trade or possible trade, and has a duty to protect that client’s interests. In this relationship, the real estate professional has the highest level of legal responsibility to you.
These responsibilities include:
- Undivided loyalty: The agent must act only in your best interests and put them above their own and those of other people. The agent must avoid conflicts of interest and must protect your negotiating position at all times.
- Confidentiality: The agent must keep information confidential, even after your relationship ends. Confidential information includes your personal information, information about the property, and information about the transaction (except information the law says must be disclosed or information you agree to disclose).
- Full disclosure: The agent must tell you, in writing, about the services they will provide. They must also tell you everything they know that might affect your relationship or influence your decision in a transaction, even if they don’t think it’s important. This includes any conflicts of interest, for example when they act (or are planning to act) on behalf of any other person in a transaction. The only information they can’t give you is confidential information from another agency relationship.
- Obedience: The agent must obey all your lawful, reasonable, and ordinary instructions. If you insist on something unlawful, the agent must refuse and consider ending your relationship and the agreement.
- Reasonable care and skill: The agent must exercise reasonable care and skill in all their duties. They must meet the standard of a reasonable and competent member of the real estate industry.
- Full accounting: The agent must account for all money and property they receive while acting on your behalf. Everything a client puts in the care of an agent—for example, money, keys, or documents—is returned when the agreement ends.
Customer Relationships
You can choose to represent yourself in a purchase or sale when a real estate professional represents the other party. In this case, you have a customer relationship with the real estate professional. They can’t give you the services they give when acting as your agent, but they can help make the purchase or sale happen. For example, they may agree to give you statistics or the names of appraisers, mortgage brokers, or other service providers. They may also help you complete standard forms. When a real estate professional works with you as a customer, they have a responsibility to act honestly, use reasonable care and skill, and make sure any information they give is correct.
Understanding your options is crucial to avoid unintentionally settling for less representation than you desire, particularly when making the most significant investment of your life. Exclusive representation becomes paramount in such instances, ensuring you have a dedicated professional working exclusively on your behalf throughout the homebuying process.