I'm a REALTOR®, a member of the Canadian Real Estate Association and I subscribe to a Code of Ethics and Standards of Business Practice. One requirement is that REALTORS® must fully disclose in writing whom they are representing when providing professional services:
Article 2: Disclosure of Role - Agency, A REALTOR® shall fully disclose in writing to, and is advised to seek written acknowledgement from, his or her Clients and those Customers who are not represented by other Registrants regarding the role and nature of the service the REALTOR® will be providing. This disclosure shall be made at the earliest possible opportunity and in any event prior to the REALTOR® providing professional services which go beyond providing information as a result of incidental contact by a consumer.
The difference between merely receiving information from an agent and being represented by an agent is the difference between a customer and a client.
A client (principal) is a person who has engaged or employed an agent to act as that person's agent. The agent and every employee of the agent owes the client the fiduciary duties of undivided loyalty, full disclosure, lawful obedience, confidentiality, accounting and reasonable care.
SINGLE AGENCY (undivided loyalty)
A buyer’s agent represents the buyer, often through a Buyer Agency Agreement. The Buyer is entitled to all the fiduciary duties which an agent owes to a client.
A seller’s agent represents the seller, often through a Listing Agreement with the seller or by cooperating as a sub-agent of the listing agent. The Seller is entitled to all the fiduciary duties which an agent owes to a client.
DUAL AGENCY (conflict of interest)Dual agency occurs when a real estate agency is representing both seller and buyer in the same transaction. Since the real estate agency promised confidentiality, full disclosure and loyalty to both client parties, the agency will have to limit their fiduciary duties in this situation, but only if both client parties provide informed consent in writing.
If you are asked to become involved in a double agency relationship, you have the right to say "No thanks" and assert your right to full representation and undivided loyalty".
Here is my disclosure of the role and of the nature of my service: I disclose that I represent buyer clients as well as seller clients in SINGLE AGENCY. As my client you have the right to my undivided loyalty in a real estate transaction therefore I will represent you in Single Agency as either a Buyer's Agent or a Seller's Agent. I have a NO DUAL AGENCY policy and I encourage you to say "no thanks" to the practice of DUAL AGENCY. You have the right to full representation and undivided loyalty through the entire process.
I / we, ___________________________, have read and understand this disclosure form and acknowledge that Larry Estabrooks, Agent & REALTOR®, disclosed the role and nature of the service Larry will be providing to me is Single Agency representation as Buyer's Agent [_] or Seller's Agent [_] check one box only !