REALTORS work within a legal relationship called Agency. The Agency (relationship) exists between you (the Client), and your Agent (technically and legally the Real Estate Company) through the individual Realtor representing you.

For you, the Client, it is important to know "who works for who". Agents and its Realtors are legally (as well as ethically) obligated to protect and to promote the interests of their clients, as they would their own interests. The following are highlights of some of the duties:

1. Undivided Loyalty. The Agent must protect the Client's negotiating position at all times, and disclose all known facts which may affect or influence the Client's decision.
2. To obey all lawful instructions of the Client.
3. Confidentiality. An obligation to keep the confidences of the Client.
4. The duty to account for all money and property entrusted in the Agent's hands while acting for the Client.

Dual Agency

Dual Agency occurs when a Real Estate Agent is representing both the Buyer and the Seller in the same transaction, for instance, when a Buyer is purchasing a property from the Listing Agent. Since the Agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to "limit" these duties in this situation, if both parties consent. This relationship involves the following limitations:

1. The Agent will deal with the Buyer and the Seller impartially
2. The Agent will have a duty of disclosure to both the Buyer and the Seller except that of personal information, "bottom line" and motivation why the Seller is selling or the Buyer is buying that could disadvantage either party, unless authorized to do so.

In spite of certain amount of contraversy especially in the U.S.A (and even prohibition in some States), Dual Agency works quite well under normal circumstances, since a Real Estate transaction is not a adversarial one and both the Seller and the Buyer are "winners" if a Contract of Purchase and Sale is successfully negotiated.

WORKING WITH A REALTOR - pamphlet from the BC Real Estate Association