Your Real Estate Charter Of Rights
A Guide to Engaging the Services of a Licensed Real Estate Agent in New Brunswick
Real Estate Agents do not sell a product, they sell their service and it's better for consumers, both buyers and sellers, to close a transaction knowing that they have not made significant decisions alone, without the help of a professional advisor.
Whether you're a real estate buyer or seller you have the right to the advice, assistance, and undivided loyalty of your own Agent in your real estate dealings - if you so choose!
You should never assume that an Agent is acting on your behalf unless you have made the necessary arrangements for the Agent to be your Agent.
When buyers engage their own Agent, the Agent is obligated to obtain the property at the lowest price and best terms possible.
When sellers engage their own Agent, the Agent is obligated to obtain the property at the highest price and best terms possible.
It's your right to make all the business decisions including the terms upon which you engage an Agent.
Property finders/facilitators introduce prospective sellers and buyers who will communicate, negotiate, and contract directly. Property finders/facilitators are not licensed nor are they Agents; so they owe no loyalty to either party. They may solicit payment from both parties and they cannot be relied upon or held accountable for any advice or assistance in negotiations.
Single Agent (Buyer's Agent or Seller's Agent) represent the buyer or seller in a fiduciary capacity. They will represent buyers or sellers, but never both in the same transaction. Sub-Agents are Agents of the Listing Agency employed by the Principal and represent the listing Seller.
Dual-agents can legally represent both the Seller and the Buyer with the informed consent of both the Seller and the Buyer. Dual Agency Agreements vary widely and often do not address conflicts in the duties of loyalty, obedience, disclosure and confidentiality in the same way. Read them carefully and remember your right to seek legal advice before you give up any of your real estate rights by signing a double agency agreement.
AGENT - FIDUCIARY
When acting as your Agent, a real estate Agent (and their salespersons) owe the following fiduciary duties to you, the Principal:
THE SPECIAL VALUE OF FIDUCIARY LOYALTY
When a real estate Agent or Agency (and their salesperson representatives) acts as your Agent, they must:
* Put your best interests before all others including their own. It is this undivided loyalty that represents the extra value that an Agent's services have to consumers over the services of non-fiduciaries, like dual-agents, who owe no undivided loyalty.
* Not represent interests, adverse to you, in the same transaction in which they agreed to act as your Agent because of the inherent conflict in the obligations owed to the two parties. For example, a Single Agent must not represent the seller and the buyer or the landlord and the tenant in the same transaction. If your Agent is disloyal, (s)he could be required to forfeit compensation unless (s)he can prove that you freely gave your Informed Consent to such disloyalty. For your consent to be informed, your Agent must show that (s)he made Full Disclosure of the entire truth, including its real effect on your best interests, in words that plainly explain the risks and detriments of consenting to any proposal that basically asks you to waive your right to your Agent's undivided loyalty.
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