Agency Relationship in Alberta
To start of we will begin by explaining what agency is and then proceed to show how it can affect you as a client. (Below is an expandable/collapsable list of a few key definitions)
SO WHAT IS AGENCY?
As explained in the definition, is the relationship between the principal (you) and the agent (our brokerage). Basically it means that I (as a REALTOR) acting on behalf of the brokerage that I work for (ie CENTURY 21 Bamber Realty Ltd.) am representing you (the client) in dealings with others.
The client-agent relationship is sometimes more familiar with examples like:
- a stockbroker (agent) buying and selling stocks for an investor (you)
- a lawyer (agent) representing you (client) in drawing up a contract
These are just a few of many examples of agency relationships. The one we are focusing on today is the agency relationship of a real estate brokerage and its industry members providing real estate brokerage services to you (or the public).
Agency can be created by agreement between the parties. The preferred method of agreement is a written format. This is called Expess agency. The most common method of creating an agency representation relationships in the real estate industry is through a service agreement. (ie seller brokerage agreement or buyer brokerage agreements)
HOW DOES AGENCY AFFECT YOU?
A prudent real estate agent will discuss agency with you the very first time you meet. Why you ask?
This is a very similar circumstance agency relationships are put in place to Agency affects you in the following ways:
When you hire a REALTOR ® you are hiring a professional in the real estate business. Your REALTOR ® should be able to provide you with in depth advice on median housing statistics by area, prepare CMA`s (current market analysis) on properties and bring a diverse set of skill to the table. Hiring a professional means that not only will you be protected during one of the biggest decisions of ones financial life, but also give you the peace of mind that you are getting the most competitive price possible on your home.
If you have any more questions on agency please click the agency link and open the pamphlet (PDF) prepared by the `REAL ESTATE COUNCIL of ALBERTA`. Download pamphlet
Please also view the chart below to see the pro`s of being in agent status vs. customer status.
