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Honesty and Integrity
Most real estate professionals in our province are members
of the Ontario Real Estate Association (OREA) and only
members of OREA can call themselves REALTORS®.
When you work with a REALTOR®, you can expect
strict adherence to provincial laws, which includes a
Code of Ethics. That code assures you will receive
the highest level of service, honesty and integrity.
Highest Professional Standards
Before receiving a real estate registration, candidates must
successfully complete an extensive course of study developed
by OREA on behalf of the Real Estate Council of
Ontario. That is only the beginning: in the first two years
of practice, registrants are required to successfully complete
three additional courses as part of their articling
with an experienced broker. In addition, all registrants
must continue to attend courses throughout their careers
in order to maintain their registration.
Who's working for you?
It is important that you understand who the
REALTOR® is working for. For example,
both the seller and the buyer may have their
own agent which means they each have a
REALTOR® who is representing them.
Or, some buyers choose to contact the seller's
agent directly. Under this arrangement
the REALTOR® is representing the seller,
and must do what is best for the seller, but
may provide many valuable customer services
to the buyer.
A REALTOR® working with a buyer may
even be a "sub-agent" of the seller. Under
sub-agency, both the listing brokerage and
the co-operating brokerage must do what is
best for the seller even though the subagent
may provide many valuable customer
services to the buyer.
If the brokerage represents both the seller
and the buyer, this is multiple representation.
Code of Ethics
REALTORS® believe it is important that the
people they work with understand their
agency relationship. That's why requirements
and obligations for representation and customer
service are included in a Code of
Ethics which is administered by the Real
Estate Council of Ontario.
The Code requires REALTORS® to
disclose in writing the nature of the services
they are providing, and encourages
REALTORS® to obtain written acknowledgement
of that disclosure. The Code also
requires REALTORS® to submit written
representation and customer service agreements
to buyers and sellers.
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Source: Working with a REALTOR
REALTORS® are governed by
the legal concept of "agency".
An agent is legally obligated
to look after the best interests
of the person he or she represents.
The agent must be loyal
to that person.
A real estate brokerage may
be your agent — if you have
clearly established an
agency relationship with
that REALTOR® with a representation
agreement. But
often, you may assume such
an obligation exists when it
does not.
REALTORS® believe it is
important that the people
they work with understand
when an agency relationship
exists and when it does not
— and understand what it
means.
In real estate, there are
different possible forms of
agency relationship:
1. Seller representation
When a real estate brokerage represents a seller, it
must do what is best for the seller of a property.
A written contract, called a listing agreement, creates
an agency relationship between the seller and the
brokerage and establishes seller representation. It also
explains services the brokerage will provide, establishes
a fee arrangement for the REALTOR®'s services
and specifies what obligations a seller may have.
A seller's agent must tell the seller anything known
about a buyer. For instance, if a seller's agent knows
a buyer is willing to offer more for a property, that
information must be shared with the seller.
Confidences a seller shares with a seller's agent must
be kept confidential from potential buyers and others.
Although confidential information about the seller
cannot be discussed, a buyer working with a seller's
agent can expect fair and honest service from
the seller's agent and disclosure of pertinent information
about the property.
2. Buyer representation
A real estate brokerage representing a buyer must
do what is best for the buyer.
A written contract, called a buyer representation
agreement, creates an agency relationship between
the buyer and the brokerage, and establishes buyer
representation. It also explains services the brokerage
will provide, establishes a fee arrangement for
the REALTOR®'s services and specifies what obligations
a buyer may have.
Typically, buyers will be obliged to work exclusively
with that brokerage for a period of time. Confidences a buyer shares with the buyer's agent
must be kept confidential.
Although confidential information about the buyer
cannot be disclosed, a seller working with a buyer's
agent can expect to be treated fairly and honestly.
3. Multiple representation
Occasionally a real estate brokerage will represent
both the buyer and the seller. The buyer and seller
must consent to this arrangement in writing. Under
this multiple representation arrangement, the brokerage
must do what is best for both the buyer and the
seller.
Since the brokerage's loyalty is divided between the
buyer and the seller who have conflicting interests, it
is absolutely essential that a multiple representation
relationship be properly documented. Representation
agreements specifically describe the rights and duties
of everyone involved and any limitations to those
rights and duties.
4. Customer service
A real estate brokerage may provide services to buyers
and sellers without creating buyer or seller representation.
This is called "customer service".
Under this arrangement, the brokerage can provide
many valuable services in a fair and honest manner.
This relationship can be set out in a buyer or seller
customer service agreement.
Real estate negotiations are often complex and a
brokerage may be providing representation and/or
customer service to more than one seller or buyer.
The brokerage will disclose these relationships to
each buyer and seller.
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Relationship