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                                                                                                                      11                        Times-Roman

                                                                                                                     Honesty and Integrity
                                                                                                                     Most real estate professionals in our province are mem-
                                                                                                                     bers of the Ontario Real Estate Association (OREA) and
                                                                                                                     only members of OREA can call themselves Commercial
                                                                                                                     REALTORS.


                                                            W
Commercial REALTORS are governed by the
legal concept of “agency.” An agent is legally                                                                       When you work with a Commercial REALTOR, you
obligated to look after the best interests of the              hen working with a                                    can expect not only strict adherence to provincial laws,
                                                                                                                                                                                                                   Working with a
person he or she represents. The agent must be
loyal to that person.                                       Commercial REALTOR, it is
                                                                                                                     but also adherence to a Code of Ethics. And that code is
                                                                                                                     very important to you because it assures you will receive
                                                                                                                     the highest level of service, honesty and integrity.                                        Commercial
A real estate brokerage may be your agent –
if you have clearly established an agency
relationship with that Commercial REALTOR
with a representation agreement. But often, you
may assume such an obligation exists when it
                                                            important to understand
                                                            who the Commercial
                                                            REALTOR works for.
                                                                                                                     Highest Professional Standards
                                                                                                                     Before receiving a real estate registration, candidates must
                                                                                                                     successfully complete an extensive course of study devel-
                                                                                                                     oped by OREA on behalf of the Real Estate Council of
                                                                                                                     Ontario. That is only the beginning: in the first two years
                                                                                                                     of practice, registrants are required to successfully com-
                                                                                                                                                                                                                 Realtor
                                                                                                                                                                                                                 The Agency Relationship
does not.
                                                            To whom is the Commercial                                plete three additional courses as part of their articling with
Commercial REALTORS believe it is important                                                                          an experienced broker. In addition, all registrants must
that the people they work with understand when              REALTOR legally obligated?                               continue to attend courses throughout their careers in
                                                                                                                     order to maintain their registration.
an agency relationship exists and when it does
not – and understand what it means.                                                                                  Want More Information?
                                                                                                                     • Visit www.orea.com
                                                                                                                     • Check out homes for sale on the Internet at www.mls.ca
                                                                                                                     Other pamphlets available:
                                                                                                                     • Buying a Home            • Selling a Home
                                                                                                                     • GST & Real Estate        • Home Insurance
                                                                                                                     • Home Ownership Incentives
                                                                                                                     • Marijuana Grow House Operations
                                                                                                                     Ontario Real Estate Association
                                                                                                                     99 Duncan Mills Road, Don Mills, Ontario M3B 1Z2
                                                                                                                     Telephone: (416) 445-9910 Fax: (416) 445-2644
                                                                                                                     Toronto Real Estate Board
                                                                                                                     1400 Don Mills Road, Toronto, Ontario M3B 3N1
                                                                                                                     Telephone: (416) 443-8100 Fax: (416) 443-0797

                                                                                                                     This brochure is for information only and is not a contract.
                                                                                                                     For the purposes of this information, the term “seller” can be interpreted
                                                                                                                     as “landlord” and “buyer” can mean “tenant.”




                                                                                                                     Form 506 Rev. 04/2006

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In real estate, there are                                       Confidences a buyer/tenant shares with the                          Who's working for you?                                              Acknowledgement by
different possible forms of                                     buyer’s/tenant’s agent must be kept confidential.                   It is important that you understand who the                          ________________________________________________
agency relationship:                                            Although confidential information about the                         Commercial REALTOR is working for. For example,                     (Names)
                                                                buyer/tenant cannot be disclosed, a seller/landlord                 both the seller/landlord and the buyer/tenant may                   I/we have read and understand the Working with a Commerical
                                                                working with a buyer’s/tenant’s agent can expect to be              have their own agent which means they each have a                   REALTOR — The Agency Relationship brochure:
1. Seller/Landlord representation                                                                                                   Commercial REALTOR who is representing them.
                                                                treated fairly and honestly.
When a real estate brokerage represents a                                                                                                                                                               Buyers/Tenants
seller/landlord, it must do what is best for the sell-          3. Dual representation                                              Or, some buyers/tenants choose to contact the sell-                 As buyer(s)/tenant(s), I/we understand that:
er/landlord of a property.                                      Occasionally a real estate brokerage will represent                 er’s/landlord's agent directly. Under this arrangement
                                                                                                                                                                                                         ________________________________________________
A written contract, called a listing agreement,                 both the buyer/tenant and the seller/landlord. The                  the Commercial REALTOR is representing the sell-                    (Name of Brokerage)
creates an agency relationship between the                      buyer/tenant and seller/landlord must consent to this               er/landlord, and must do what is best for the
seller/landlord and the brokerage and establishes               arrangement in writing. Under this dual representa-                 seller/landlord, but may provide many valuable cus-                 Is (initial one)
seller/landlord representation. It also explains ser-           tion arrangement, the brokerage must do what is best                tomer services to the buyer/tenant.
                                                                                                                                                                                                         _______ My Agent (Buyer’s/Tenant’s Agent), to be
vices the brokerage will provide, establishes a fee             for both the buyer/tenant and the seller/landlord.                  A Commercial REALTOR working with a buyer/ten-                               documented in a separate written agency
arrangement for the Commercial REALTOR’s ser-                                                                                       ant may even be a “sub-agent” of the seller/landlord.                        representation agreement as required by the Real
vices and specifies what obligations a seller/land-             Since the brokerage’s loyalty is divided between the
                                                                                                                                    Under sub-agency, both the listing brokerage and the                         Estate and Business Brokers Act, and I understand
lord may have.                                                  buyer/tenant and the seller/landlord who have con-                                                                                               the agent also represents sellers/landlords and may
                                                                flicting interests, it is absolutely essential that a dual          co-operating brokerage must do what is best for the
                                                                                                                                    seller/landlord even though the sub-agent may provide                        be required to act as a dual agent.
A seller’s/landlord’s agent must tell the seller/land-          representation relationship be properly documented.
lord anything known about a buyer/tenant. For                   Representation agreements specifically describe the                 many valuable customer services to the buyer/tenant.                 _______ Not representing my interests, to be documented
instance, if a seller’s/landlord’s agent knows a                rights and duties of everyone involved and any limi-                                                                                             in a separate written customer service agreement, as
                                                                                                                                    If the brokerage represents both the seller/landlord
buyer/tenant is willing to offer more for a proper-             tations to those rights and duties.                                                                                                              required by the Act, but will act in a fair, ethical
                                                                                                                                    and the buyer/tenant, this is dual representation.                           and professional manner.
ty, that information must be shared with the sell-
er/landlord.                                                    4. Customer service                                                 Code of Ethics                                                      Signature                                 Date
Confidences a seller/landlord shares with a                     A real estate brokerage may provide services to buy-
                                                                                                                                    Commercial REALTORS believe it is important that                     _________________________________________________
seller’s/landlord’s agent must be kept confidential             ers/tenants and sellers/landlords without creating
                                                                                                                                    the people they work with understand their agency
from potential buyers/tenants and others.                       buyer/tenant or seller/landlord representation. This is                                                                                  _________________________________________________
                                                                                                                                    relationship. That’s why requirements and obliga-
                                                                called “customer service.”
                                                                                                                                    tions for representation and customer service are
Although confidential information about the sell-
                                                                                                                                    included in a Code of Ethics which is administered
                                                                                                                                                                                                        Sellers/Landlords
er/landlord cannot be discussed, a buyer/tenant                 Under this arrangement, the brokerage can provide                                                                                       As seller(s)/landlord(s), I/we understand that:
working with a seller’s/landlord's agent can expect             many valuable services in a fair and honest manner.                 by the Real Estate Council of Ontario.
                                                                This relationship can be set out in a buyer/tenant or                                                                                    _________________________________________________
fair and honest service from the seller’s/landlord’s                                                                                The Code requires Commercial REALTORS to dis-                       (Name of Brokerage)
agent and disclosure of pertinent information                   seller/landlord customer service agreement.
                                                                                                                                    close in writing the nature of the services they are pro-
about the property.                                             Real estate negotiations are often complex and a                    viding, and encourages Commercial REALTORS to                       Is (initial one)
                                                                brokerage may be providing representation and/or                    obtain written acknowledgement of that disclosure.                   _______ My Agent (Seller’s/Landlord’s Agent), to be
2. Buyer/Tenant representation                                  customer service to more than one seller/landlord or                The Code also requires Commercial REALTORS to                                documented in a separate written agency
A real estate brokerage representing a buyer/tenant             buyer/tenant. The brokerage will disclose these rela-               submit written representation and customer service                           representation agreement as required by the Real
must do what is best for the buyer/tenant.                      tionships to each buyer/tenant and seller/landlord.                 agreements to buyers/tenants and sellers/landlords.                          Estate and Business Brokers Act, and I understand
A written contract, called a buyer/tenant                                                                                                                                                                        the agent also represents buyers/tenants and may
representation agreement or mandate agreement, cre-                                                                                                                                                              be required to act as a dual agent.
ates an agency relationship between the buyer/tenant
and the brokerage, and establishes buyer/tenant rep-
resentation. It also explains services the brokerage will
                                                                                                 A written contract, called a listing agreement, establishes seller/                                     _______ Not representing my interests to be documented in a
                                                                                                                                                                                                                 separate written customer service agreement as
                                                                                                                                                                                                                 required by the Act, but will act in a fair, ethical and
provide, establishes a fee arrangement for the                                                   landlord representation. It also explains services the Brokerage will                                           professional manner.
Commercial REALTOR’s services and specifies what
obligations a buyer/tenant may have.                                                             provide, establishes a fee arrangement for the Commercial REALTOR’s                                    Signature                                 Date
Typically, buyers/tenants will be obliged to work                                                services and specifies what obligations a seller/landlord may have.                                     _________________________________________________
exclusively with that brokerage for a period of
                                                                                                                                                                                                         _________________________________________________
time.




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