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Representation

Brokers/sales representatives or real estate brokerages are now governed by a new act (as of Dec 1st, 2023) called Trust in Real Estate Act. An agent is legally obligated to look after the best interests of the client they are representing and be loyal to them.

We as brokers/sales representatives believe it is important that the people we work with understand the type of representations that now exists under the new Act.

In Real Estate, there are different possible forms of representation:

  • Client Representation (Buyers & Sellers)
  • Self Representation (individuals who have chosen to represent themselves)
  • Multiple Representation (Designated sales representative representing more than one client with interest in the same transaction)

It’s important for you to understand the different types of representation, should you consider buying or selling any real estate. Be sure you have your broker/sales representative explain what the differences are.  You can refer to the Real Estate Council of Ontario Information Guide for more information.

It is best for you to have a contract up front with any agent working for you, so that your best interests are looked after. The following are descriptions of the different types of representation provided by the Real Estate Council of Ontario.

 

Client Representation

A real estate brokerage representing a buyer, or a seller must do what is best for them while providing valuable information, advice, and guidance through the many steps of real estate transactions.

A written contract, called a buyer representation agreement or listing agreement, creates a relationship between the clients and the brokerage/sales representative, and establishes client representation. It also explains, for example, services the brokerage/sales representative will provide, establishes a fee arrangement for the brokers/sales representatives services and specifies what obligations a client and the length of time for the contract. Refer to page 6 of the Real Estate Council of Ontario Information Guide.

Information a client shares with the sales representative must be kept confidential.

 

Multiple Representation

Multiple representation means a designated representative or brokerage represents more than one client, with competing interests, in the same transaction. This can happen in different ways, depending on the type of representation agreement you and the other clients have with the brokerage.  For example, Multiple representation exists when the same real estate agent is the designated representative for both the buyer and the seller in the same transaction, or for two or more buyers interested in the same property.

Multiple representation is not permitted unless each of the clients involved agrees in writing.

What to expect before you agree to multiple representation

The brokerage is required to provide you with a written disclosure that explains:

  • how the brokerage’s duties or the designated representative’s duties to you will change;
  • the differences in the services you will receive; and,
  • any change to how much you pay the brokerage.

Until this information is disclosed in writing to all clients in the transaction, and they all agree in writing, the brokerage or designated representative cannot take any further steps on behalf of any of the clients. Confidential information you provided to the brokerage or the designated representative when you were represented cannot be shared without your written consent.

 

Self Representation

If you are involved in a real estate transaction and are not a client of a real estate brokerage, you are considered a self-represented party. This means that you have chosen to represent yourself, which has different rights and responsibilities. Very few buyers or sellers make this choice. There are significant risks to representing yourself in a real estate transaction if you do not have the knowledge and expertise required to navigate the transaction on your own. You will be dealing with a seller or buyer who is benefitting from the services, opinions, and advice of an experienced real estate agent.

If you choose not to work with a real estate agent, it will be your responsibility to look after your own best interests and protect yourself. This may include things like:

  • making inquiries about zoning, permitted property use, or any other aspect of the property;
  • determining what you believe to be the value of the property you are buying or selling;
  • determining how much you are willing to offer or accept;
  • navigating competing offer situations;
  • deciding what terms you want to include in an offer or agreement of purchase and sale; and,
  • preparing all documents.

As a self-represented party you must be aware of the risks of representing yourself. Agents you are talking to that are representing a client cannot:

  • provide you with any services, opinions, or advice;
  • do anything that would encourage you to rely on their knowledge, skill, or judgement; or,
  • encourage you to represent yourself or discourage you from working with another real estate agent or brokerage.

Any assistance the agent offers you:

  • is a service to their client, not you;
  • is in the best interests of their client, not you; and,
  • is to help their client sell or buy a property.

If you’re concerned about completing a transaction on your own, or you need advice from a real

estate agent, you can choose to become a client of a real estate brokerage at any point during the

transaction.

 

Advantages of Client Representation:

If you are a seller, an agent can:

  • Advise you on market conditions and the best strategy to attract buyers and get the best price for your home
  • Market or advertise your home, including arranging photographs, videos and virtual tours
  • Provide referrals to other professionals you’ll need, like a lawyer or home staging company
  • Arrange and attend home inspections and appraisals
  • Arrange showings for interested buyers
  • Advise you on how to handle competing offers, sharing the content of competing offers, and other aspects of the transaction
  • Vet offers and potential buyers to ensure they can afford to buy your property
  • Negotiate with buyers to achieve the best results, price, and terms, for you
  • Guide you through paperwork and closing the transaction successfully

If you are a buyer, an agent can:

  • Assist you with getting pre-approvals for financing so you know how much you can afford
  • Make you aware of any tax exemptions you might be eligible for
  • Gather and share information about neighbourhoods and homes that meet your requirements, and arrange to show you homes you’d like to see
  • Make inquiries about zoning, permitted property use, or other aspects of the home
  • Advise you on the best approach in competing offer situations and how to protect your offer information
  • Negotiate with sellers to achieve the best results, price, and terms, for you
  • Guide you through paperwork and closing the transaction successfully
  • Provide referrals to other professionals you’ll need (for example, home inspectors, lawyers, or contractors)

  • We want to thank you and the team, especially Luc, for the work put into helping us purchase our new home. We have finally begun moving in and absolutely love the property. Luc was always very professional and well prepared when we spoke and visited the property. I will be happy to recommend your team to anyone I know whom will be selling or purchasing a home.

    Tyler & Stephanie

  • Joan, Victoria and Luc, Your service was excellent for everything! I am 100% satisfied. Thanks a lot!

    Un Yong & Young Kyung

  • Thank you Joan and to your team for selling our house as quickly as it has gone. The advice you provided was spot on and while it was an enormous amount of work in a short time, we’re pleased with the outcome.

    Shane & Laura

  • My husband and I have bought and sold several properties over the years with the help of Joan Smith. Our grown children are now also using Joan Smith. We have always received excellent personal service, helpful advice and good results so, naturally, we contacted Joan again when we recently decided to downsize. We received two offers within four days of listing our home and accepted one of those offers which was over the asking price. Joan also helped us find our next home guiding us through the process. We have always recommended Joan Smith to others and will certainly continue to do so. Carol & Alan

    Carol & Alan

  • Hello Victoria/Joan, Buying a home in Ottawa is quite an adventure. I am very glad that my realtor from Windsor recommended you. I felt that Victoria did a great job of providing me with a wide spectrum of homes to view, enabling me to better understand the market and how to value the various properties. The home search web tool provided me with time to preview and shortlist properties of interest, a very helpful feature for someone like me who is buying from out of town. Victoria was always prompt at arranging home viewings and provided informed feedback on all aspects of the property in question. She would promptly respond to any text, email or call that I placed in regard to potential properties of interest. I felt confident when making the offer on the chosen property that I was bidding reasonably, and was relieved when I successfully acquired my home of choice in this competitive Ottawa market. I think some of that success had to do with the good advice that Victoria provided regarding what to include in the negotiations and who to use when fulfilling the conditions. Victoria even kept that home inspector on his toes! I would strongly recommend your agency to anyone who is looking for a home in Ottawa. I can’t imagine receiving better service. Thanks!

    Michael

  • Joan, In general we are quite happy with your service. Luc is very professional and also knowledgeable. Not only knowing well the neighborhood, he even knows each builder of the houses we have viewed. During the visit he would give us floor plans and point out all important details that we may neglect but on the other hand, give us space on our own judgement as well. His response to our follow up questions were prompt and clear. During our negotiation with seller's agent, he also gave us some important advice base on his good knowledge in order for us to secure the deal. We are glad to become neighbors with Luc and we are looking forward to have more connections with him and of course with your team in the future. Thanks, Wilber

    Wilber

  • Hi Joan and Victoria, I would like to take this opportunity to thank you for all your hard work and professional help during my house hunting. It was a long journey but we have a happy ending. I will recommend you if any of my friends needs a realtor agent in the future. Thank you again and all the best!

    Frank

  • Hi Victoria, We would like to thank you for your tireless support throughout our house hunting process. Your professionalism and patience are truly appreciable. We are so happy about our decision to choose you as our realtor. Again, from the bottom of our heart Santo and I want to thank you for all your help and effort in our house purchase. We would definitely recommend you to anyone who need a realtor service. Great service like your is not easily found! Most importantly, you are always welcome to our home anytime!!

    Jesmy & Santo

  • My husband and I were looking for a house to move our family from Montreal to Ottawa. This search was very time sensitive to us because we had to move out from our house in Montreal by a certain date. We were extremely lucky to find this house that was vacant and fitted our needs. Due to bad experience from the past, we did not want to have a realtor looking for our new house. Luc was an agent on the sellers’ side and this is how we met him. Working with Luc changed our perception about realtors for better. He is one of the members of Joan Smith’s family business and this is an advantage for either a seller or a buyer to have a few people looking after your needs at the same cost. The service we received from Luc was quick and genuine. We know that he was acting in best interests of his clients, but we felt very relieved and secure since no one was pushing us to make our decision about this purchase and all our questions were answered. We would highly recommend this real estate agency!

    Irina & Eduard

  • We enjoyed working with you and the team as well, thank you! You helped us search within our budget and in our target areas. You used our feedback to further refine our search. Professional and honest from start to finish. As first time buyers you guided us through the negotiation process and gave us feedback about the offers and counter offers. While the closing process is ongoing, we are very happy with the level of service we’ve received from Victoria and the team to help make this house our home.

    Mike & Seema

  • We would like to thank you for your tireless support throughout our house hunting process. Your professionalism and patience are truly appreciable. We are so happy about our decision to choose you as our realtor. Again, from the bottom of our heart Santo and I want to thank you for all your help and effort in our house purchase. We would definitely recommend you to anyone who need a realtor service. Great service like your is not easily found! Most importantly, you are always welcome to our home anytime!!

    Jesmy & Santo

  • We immensely enjoyed working with Victoria and would highly recommend her services to others. She was very professional and very informative and made us feel very confident and at ease when making the decision to purchase our home. As nail-biting as the negotiations can be. She was very patient, even when showing all seven of us around! Victoria was a pleasure to work with and we look forward to perhaps someday working with her again.

    Lisa

  • It was a pleasure dealing with you and everyone at your team. I would like to thank you for your service and search efforts. You offered the perfect combination of professional skills, expertise and warm attention. You understood the sense of urgency and my family requirements as if I were the only client. I felt really supported in the middle of a difficult search within an atypical market. Your kind and attentive attention transformed a stressful moment into a constructive business experience. In a couple of years, I am sure I will contact you again for the next move, in the mean time I will recommend your business knowledge and support to my friends and family.

    Rachel & Family

  • The congratulations goes to all of you! Nancy and I are both enormously appreciative of the exceptionally good communication and service you have all provided to us. We can say that you never left us in the lurch or feeling out of touch. The marketing programs, from start to finish, far exceeded our expectations. More to the point, we have grown to deeply respect your business skills and consider your expertise to be second to none in the country. Thank you from the bottoms of our hearts.

  • We want to thank you and the team, especially Luc, for the work put into helping us purchase our new home. We have finally begun moving in and absolutely love the property. Luc was always very professional and well prepared when we spoke and visited the property. I will be happy to recommend your team to anyone I know whom will be selling or purchasing a home.

    Tyler & Stephanie