“There`s a lot of inertia, and maintaining the status quo benefits existing brokers 100 percent,” said real estate broker and agent Michael Walsh, one of the few to comment on the issue. If a real estate agent wishes to represent more than one client in relation to the same profession, he must communicate this fact to clients and/or potential clients. This is called a dual body and can be considered a conflict of interest because the financial interests of the parties are detrimental. In this situation, individual agents are prohibited from giving advice that could favour one client over the other. Before proceeding with the transaction, agents must obtain the informed consent of each party to the dual agency. It is important to note that contracts between the real estate agent and sellers and/or buyers are not concluded with individual agents (who are employees of the broker). The registration contract is a contract between the seller and the real estate agent. The seller is responsible for the payment of the commission, unless expressly stated otherwise. In a second test, Marketplace engaged 50 real estate agents in five markets across Canada. Half the time, the team called the owners who wanted to sell and half the time as buyers. When producers asked 25 agents if they could, as sellers, reduce the commission they offer to buyers, 88% warned against it. Real estate agents are subject to certain standards and ethics under the Real Estate and Commercial Brokers Act and the Code of Ethics.

Overall, they are required to exercise due diligence in the performance of all their duties. For example, they must fulfill the obligations of their contract and they must submit to the seller all offers from potential buyers. Real estate agents must also be completely honest at all times and must always follow the client`s instructions. Historically, all real estate agents only worked for home sellers and had only a fiduciary duty to them. It wasn`t until the 1990s that buying agents emerged in Ontario after some agents lobbied for change. However, the commission structure, where sellers create incentives for agents to bring buyers, has remained. When you buy a home, a real estate agent can help you find the right type of home at the right price, prepare your offer to buy, and present your offer to homeowners. In most cases, a buyer incurs no direct cost to the agent`s services. The agent you work with usually receives a portion of the commission paid to the listing agent. | “I`ve had agents tell me, `You know, we`re looking at two houses, they`re both fine, but I`m definitely massaging them to yours because there`s more for the broker,`” said another agent in Winnipeg.

There can be no problem with a duplicate agency where the buyer works with a broker who deals exclusively with buyers and does not accept offers. Over the years, he has developed and taught credit and non-credit courses for the Toronto Real Estate Board, similar organizations in the province of Ontario, and numerous real estate agencies. It also developed and delivered training seminars: participants included clients, lenders and managers of financial institutions, as well as members of the public; Topics covered a range of topics from buying, selling and financing real estate to estate planning and related issues. He has also written articles on a wide range of real estate topics for a number of different publications. RECO says commissions are negotiable and that “sellers decide how much, if any, they want to offer to pay to a buyer`s brokerage firm,” but when the 50 agents were asked about the commission they charge, almost all reported the same amount. A quarter of agents called their fees standard, and the majority said they would not negotiate. Marketplace shared what they have documented with real estate lawyers, including Lisa Laredo, who has worked in real estate law in Ontario for over 15 years. Only in certain situations is an agent allowed to “negotiate” the purchase or sale of a property. If a broker has been hired to represent both the buyer and seller in the same transaction (the preferred situation of traditional real estate agents), the law prohibits the agents concerned from “negotiating” on behalf of their clients.

Unlike a seller, a buyer usually does not sign a written agreement with a real estate agent. However, a real estate agent (on behalf of his brokerage company) is required to provide the buyer with a written agreement, known as the Buyer`s Agency Contract (BRA), which sets out the agent`s services and fees, and ask the buyer to sign it. An ARO is a legally binding contract that requires the buyer to work exclusively with a real estate agent for a certain period of time. It is also a practical reference for buyers and sellers who have used the services of a real estate agent and want to understand the exact extent of the agent`s role, as well as his duties and possible liability to them. Michael Walsh, who runs an agency exclusively for buyers, isn`t surprised by the results of the Marketplace test, saying the current framework for real estate sales allows for control. In Alberta, most offers to purchase are included in a standard form created by the local real estate committee. These forms contain at least the following information: In the case of real estate sales, the commission paid by the seller to the listing agent is passed on to the agent representing the buyer. As a rule, the commission is divided into two halves.

“The behavior is not only illegal, but also undermines consumer protection, consumer trust and the reputation of the real estate profession as a whole,” the statement said. The Canadian Real Estate Association (CREA) and the Ontario Real Estate Council (OCB) declined to speak to Marketplace about the investigation. .