AGENCY DISCLOSURE & REPRESENTATION REGULATIONS
ATTENTION: ALL BUYERS & SELLERS

REALTORS® believe it is important that the people they work with understand Agency Disclosure and Representation Authority.  That’s why “ONTARIO REGULATION 580/05” made under the REAL ESTATE AND BUSINESS BROKERS ACT, 2002 (REBBA 2002) came into effect on March 31, 2006. All licensed REALTORS®  in Canada are mandated by the following Regulations of the Act by way of the Code of Ethics regarding Agency Disclosure and Representation Agreements as set out and outlined in Sections 10 through 17 herein.

Information before agreements
10. (1)

Before entering into an agreement with a buyer or seller in respect of trading in real estate, a brokerage shall, at the earliest practicable opportunity, inform the buyer or seller of the following:

1. The types of service alternatives that are available in the circumstances, including a representation agreement or another type of agreement.
2. The services that the brokerage would provide under the agreement.
3. The fact that circumstances could arise in which the brokerage could represent more than one client in respect of the same trade in real estate, but that the brokerage could not do this unless all of the clients represented by the brokerage in respect of that trade consented in writing.
4. The nature of the services that the brokerage would provide to each client if the brokerage represents more than one client in respect of the same trade in real estate.
5. The fact that circumstances could arise in which the brokerage could provide services to more than one customer in respect of the same trade in real estate.
6. The fact that circumstances could arise in which the brokerage could, in respect of the same trade in real estate, both represent clients and provide services to customers.
7. The restricted nature of the services that the brokerage would provide to a customer in respect of a trade in real estate if the brokerage also represents a client in respect of that trade.
(2) The brokerage shall, at the earliest practicable opportunity and before an offer is made, use the brokerage’s best efforts to obtain from the buyer or seller a written acknowledgement that the buyer or seller received all the information referred to in subsection (1).
Contents of written agreements
11. (1)

A brokerage shall not enter into a written agreement with a buyer or seller for the purpose of trading in real estate unless the agreement clearly, comprehensibly and prominently,

(a) specifies the date on which the agreement takes effect and the date on which it expires;
(b) specifies or describes the method for determining,
(i) the amount of any commission or other remuneration payable to the brokerage, and
(ii) in the case of an agreement with a seller, the amount of any commission or other remuneration payable to any other brokerage;
(c) describes how any commission or other remuneration payable to the brokerage will be paid; and
(d) sets out the services that the brokerage will provide under the agreement.
(2)

A brokerage shall not, for the purpose of trading in real estate, enter into a written agreement with a buyer or seller that provides that the date on which the agreement expires is more than six months after the date on which the agreement takes effect unless,

(a) the date on which the agreement expires is prominently displayed on the first page of the agreement; and
(b)  the buyer or seller has initialed the agreement next to the date referred to in clause (a).
(3)

A brokerage shall ensure that a written agreement that is entered into between the brokerage and a buyer or seller for the purpose of trading in real estate contains only one date on which the agreement expires.

Copies of written agreements
12.

If a brokerage and one or more other persons enter into a written agreement in connection with a trade in real estate, the brokerage shall ensure that each of the other persons is immediately given a copy of the agreement.

Seller representation agreements
13.

If a brokerage enters into a seller representation agreement with a seller and the agreement is not in writing, the brokerage shall, at the earliest practicable opportunity and before any buyer makes an offer, reduce the agreement to writing, have it signed on behalf of the brokerage and submit it to the seller for signature.

Buyer representation agreements
14.

If a brokerage enters into a buyer representation agreement with a buyer and the agreement is not in writing, the brokerage shall, before the buyer makes an offer, reduce the agreement to writing, have it signed on behalf of the brokerage and submit it to the buyer for signature.

Agreements with customers
15.

If a brokerage enters into an agreement with a customer in respect of a trade in real estate and the agreement is not in writing, the brokerage shall, at the earliest practicable opportunity, reduce the agreement to writing, have it signed on behalf of the brokerage and submit it to the customer for signature.

Disclosure before multiple representation
16.

A brokerage shall not represent more than one client in respect of the same trade in real estate unless it has disclosed the following matters to the clients or prospective clients at the earliest practicable opportunity:

1. The fact that the brokerage proposes to represent more than one client in respect of the same trade.
2.

The differences between the obligations the brokerage would have if it represented only one client in respect of the trade and the obligations the brokerage would have if it represented more than one client in respect of the trade, including any differences relating to the disclosure of information or the services that the brokerage would provide.

Nature of relationship
17.

If a registrant represents or provides services to more than one buyer or seller in respect of the same trade in real estate, the registrant shall, in writing, at the earliest practicable opportunity and before any offer is made, inform all buyers and sellers involved in that trade of the nature of the registrant’s relationship to each buyer and seller.

For a clear and simple explanation of the role of “Agency” please review Are You A Client Or A Customer? If you wish Future Homes Ltd. Brokerage to represent you exclusively as a “client” to receive “preferred status” and  detailed property search information as soon as they appear on the MLS®system, please review the other Buyer Agency Articles or call our office to arrange a convenient time to meet and discuss a Buyer Representation Agreement . Please remember this service provided through a “Buyer Representation Agreement” costs you absolutely nothing, our fee is paid by the seller of the property you purchase through Future Homes Ltd. Brokerage.