Agency is the relationship existing between two parties. One is titled “agent” who is representing the other party called “Principle”. Agent has ability to impact principal's legal position in real estate trading services.
Section 3 of the Real Estate Services Act states:
"A person must not provide real estate services to or on behalf of another, for or in expectation of remuneration, unless the person is licensed or exempt from licensing under RESA."
The new implemented rules and requirement by Real Estate Council is very precise on consumer consent and understanding the agency relationship prior to receiving any real estate services.
A consumer is only in the position to make an informed decision about how trading services should be provided to him or her when the Real Estate agent / REALTOR® and the consumer have had a conversation about agency. The concept that a consumer can use the services of a competent Realtor in Vancouver to protect their interests in a real estate transaction is what is expected.
People hire Vancouver REALTORs® for a variety of reasons; however, the key reason is because the find their real estate agent possesses a certain level of knowledge, skills, and abilities (KSA) that they can rely upon. As a result, the principal / consumer places his or her trust and confidence in the agent and relies upon the agent to act for his or her benefit.
The law recognizes that, because of this agency formed, and consumers placing their reliability and confidence in their Vancouver agents, the agent must exercise extreme cautions to protect their clients best interest and place their benefit ahead of themselves. To do this, the law presumes that most agency relationships are also fiduciary relationships.
- Duty of Loyalty: A duty to protect the best interest of the client
- The Duty to Avoid Conflict of Interest
- Duty of Full Disclosure: Disclosing everything and anything relating to the transaction
- Duty of Confidentiality: this duty never ends even if the transaction is over
A key aspect of fiduciary duties is that the law pays more attention to the actions of the fiduciary than the results of those actions.
Despite negative media attention on the industry, Realtors now have the opportunity to send a strong message to the public that they operate their business in a legal and ethical manner. It is important for the consumer to understand and experience the expertise, skills, knowledge and most importantly ethical conduct of their agents.