When you’re buying or selling a home, it’s essential to understand your relationship with your real estate professional. This relationship isn’t just about having someone help you find or sell a property—it defines the level of service, responsibility, and confidentiality you can expect. In Alberta, all buyers and sellers are given the Consumer Relationship Guide to explain these options. Here’s a quick breakdown to help you understand the main points.
Why This Guide Matters
Buying or selling a property is one of the biggest financial moves you’ll make, so it’s critical to know what kind of support your real estate professional can offer. By signing this guide, you’re acknowledging that your agent has explained these options to you, and you’ll make an informed decision about your working relationship.
Types of Relationships with a Real Estate Agent
The Consumer Relationship Guide covers three main ways you can work with a real estate agent:
Common Law Agency (Brokerage Agency)
In this setup, the entire brokerage (including all its agents and staff) represents you as their client. Everyone in the brokerage works collectively in your best interest. This is often called a common law agency relationship.
Designated Agency (Individual Agent)
In a designated agency relationship, you work directly with one specific real estate agent, who is your designated representative. This agent will handle your needs exclusively without other agents from the brokerage being involved, ensuring more focused support.
Customer Relationship
If you decide to represent yourself in a transaction, your real estate agent will act as a facilitator rather than an advisor. This means they won’t give you the same services or level of guidance as they would for a client. Instead, they can provide general information, help you fill out forms, and connect you with appraisers or mortgage brokers, but won’t advocate specifically for your interests.
Responsibilities of an Agent When They Represent You
If you choose to have an agent-client relationship, your real estate professional has specific obligations to protect and support you fully. These responsibilities include:
Undivided Loyalty: Your agent will prioritize your interests, putting them above anyone else’s, including their own.
Confidentiality: Your personal information and transaction details stay private, even after your relationship ends.
Full Disclosure: Your agent must tell you everything that might impact your decision, including conflicts of interest.
Obedience: They will follow all lawful instructions you provide.
Reasonable Care and Skill: Your agent must perform their duties to the best of their professional abilities.
Full Accounting: They’ll keep track of any property or funds they manage for you.
Conflict of Interest: When Your Agent Represents Both Buyer and Seller
In cases where the same agent represents both the buyer and the seller, there’s a potential for conflict of interest. Here’s how this situation can be handled:
Separate Representation: Either the buyer or the seller can work with a different agent.
Customer Relationship: The agent may continue working with one party as a customer rather than a client. They’ll provide impartial help but won’t advocate for either side’s best interest.
Facilitated Transaction: The agent can act as a facilitator, offering services equally to both sides. They won’t give confidential advice or favor one side over the other. Their goal is to complete the transaction fairly, relaying offers, documents, and updates to both parties.
All parties must agree in writing to any change in relationship before any offers are made or accepted.
Making an Informed Choice
Your real estate professional should take the time to explain all these options and their responsibilities. Once you’re clear on how you want to proceed, you’ll be asked to sign an agreement that details your relationship with them.
Final Thoughts
Understanding the type of relationship you have with your real estate agent can make a big difference in your buying or selling experience. Whether you need full advocacy, general assistance, or something in between, the Consumer Relationship Guide ensures that you know what to expect.
When you sign off on this guide, it’s not just paperwork—it’s about making sure you’re informed and comfortable with the level of support you’ll receive.
If you have any questions or would like to discuss your options in more detail, feel free to reach out. I’m here to help you make informed decisions in your real estate journey.
