Question:
A friend of my recently became a REALTOR®. My husband and I decided that we would like to look at some homes so we called her. Linda (not her real name) was very excited to show us property, and suggested we meet with her at her office one night during the week so she could go over some listing information with us on her computer. We went down to Linda’s office on a Wednesday evening, and she showed us various properties that fit our needs and price range. We decided on six properties to look at and told her to set up viewings for us. She was more than happy to do this for us, and we went out to look at these properties later in the week. To our surprise we found one we liked and asked Linda to help us write an offer on it. Now before she began any paper work she showed a green brochure and explained to us that it was called an agency brochure. The brochure explains the relationship between us and her in the purchase of this house. We both signed it where she indicated and that was the end of our conversation on it. We did successfully make our deal and we are now living in our new home, and are very satisfied with the assistance Linda gave us. My question is what was this green brochure we signed? Yours truly,
M & T

Answer:
Dear M & T

Linda was right the “Agency Brochure” is just what she said it was a document that explains the relationship you are in when being represented by a REALTOR®. Agency work within a legal framework called agency, and we believe the public should understand how this relationship works. In this province REALTORS® practice three types of Agency which are:

1. Seller’s Agency
2. Buyer’s Agency
3. Limited Dual Agency

In the “Seller’s Agency” the REALTOR® and the Brokerage represents a person to sell property, and as such will only represent the interests of the seller in any transaction.

In the “Buyer’s Agency” the REALTOR® and the Brokerage represents a person to purchase property, and as such will only represent the interests of the buyer in any transaction.

In both cases the person the REALTOR® and Brokerage is representing can expect:

1. Obey any instructions that the concerned party gives them as long as they are specified in the contract or are of a legal nature.
2. Represent the best interests of the party they represent
3. Fully disclose any known facts which will influence a party’s decision
4. Maintain confidentially of all personal and financial information discussed even if the contract they have entered into ceases.
5. Safeguard any documents or monies entrusted to their care by the party represented
6. Exercise reasonable care and diligence.

The last type of an Agency relationship is that of Limited Dual Agency. In this type of Agency the REALTOR® or their Brokerage represent both parties in the transaction. In this case the loyalties owed to both parties conflict so in this kind of agency the following applies

1. There will be no disclosure on either what a seller will accept or what a buyer will pay for a property.
2. Motivation of either party will not be discussed unless written permission is given by either party.
3. All parties involved will be represented equally
4. Financial or personal information will not be discussed with either party with out permission
5. All material defects of a property which are know will be disclosed to a buyer
6. Both parties are entitled to receive comparable pricing information on similar properties at any time to assist with decision making

In the case of Dual Agency this will be made known to both parties. To the buyer before an offer to purchase is drawn up, and to a seller before an offer to purchase is presented.

There now I hope that makes it clear what the green brochure is for, and I hope you see when you use a REALTOR® you are protected in your dealings

---

The Moose Jaw Real Estate Board reserves the right to print only those questions that they deem appropriate. If you would like to have a personal response to your question include your name & address and a reply will be forwarded to you.

Address your inquires to:
Ask A REALTOR®
c/o Moose Jaw Real Estate Board
79 Hochelaga St. W.
Moose Jaw, SK
S6H 2E9