Code of ethics protects realtor, homebuyer
I saw a house I was interested in online and called the listing representative. She told me she can’t provide me with information because I’m working with someone else. Why is this so?
With so much information about real estate on the Internet, it is common practice for would-be buyers to look online for properties to fit their needs. However, only certain data about a home is available to the public on real estate websites. A simple solution would seem to be calling the listing salesperson for more information. However, the listing agent you called is correct in telling you she cannot directly provide more detailed information about the property.
That’s because under the code of ethics that real estate professionals in Ontario must follow, the seller’s representative is not allowed to provide you with services — including private information about a listed property — if you are a client of another brokerage.
The contract you signed with your salesperson’s brokerage is called a buyer representation agreement and it is legally binding. The overall obligation for the brokerage and its representative is to provide you with client services. In exchange, the brokerage is paid a commission to help you find a home, guide you through the buying process and provide other services you have agreed to in the contract.
Even if you find the home on your own, the contract means the listing brokerage and its representative can only deal with your representative. The only time you could get information directly from the listing representative is if your representa- tive’s brokerage gave permission in writing to the seller’s brokerage, and the seller’s brokerage agrees to that arrangement.
So, what can you do if you want to look at the house you found online?
Your agent can contact the seller’s rep, get the information you are seeking and then arrange a showing if you’d like to see the home.
And, this is where the value of working with a registered sales representative comes into play: Your representative has the training, experience and knowledge to ask questions and obtain information that you may not have consid- ered. He or she is also obligated to protect your interests and has specialized knowledge of the buying and selling process.
Moreover, there may be services you’ve included in your contract that turn out to be helpful as you consider purchasing real estate. Certainly, having a buyer representation agreement in place protects your interests in the transaction. When you enter an agreement with a brokerage, you have rights and obligations. If you enter into a second agreement, you could be stuck paying twice for the same service or facing legal action by one or both brokerages.
That is why it is so important for a salesperson to make sure they ask if you have already entered an agreement with another brokerage. It protects you and it protects the brokerage. Therefore, even though your request for information from the seller’s representative seems simple enough, there are good reasons for that representative to follow the Code of Ethics. Joseph Richer is registrar of the Real Estate Council of Ontario (RECO). He oversees and enforces all rules governing real estate professionals in Ontario. Email questions to askjoe@reco.on.ca. Find tips at reco.on.ca, follow on @RECOhelps or youtube.com/RECOhelps.