FAQ

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Question:
What is the difference between a buyer's broker and a traditional real estate agent? Does the buyer's broker have to be paid by the buyer?--TY

Answer:
A buyer's broker (also called buyer's agent) is a real estate agent hired by the buyer to represent his or her interests. Traditionally, real estate agents have listed property for sale and formed a legal relationship with the seller. Buyers who desire to have their positions advocated, and have the agent negotiate on their behalf, can now hire agents to represent them.

The buyer's agent can be paid by anyone---the buyer, a third party, or could receive the co-broker (selling broker) share of the commission offered by the listing broker through the multiple listing service. This last method of compensation is typical in a high percentage of buyer agent sales nationwide.

What's the difference between a Realtor and a Real Estate Agent?

Question:
I was reading an article the other day that included the terms "Realtor" and "real estate agent". What is the difference? Don't they both sell real estate?--WE

Answer:
They do both sell real estate. A real estate agent is someone who is licensed by a provincial licensing body. A REALTOR is a real estate agent who, in addition, belongs to the Canadian Real Estate Association. (C.R.E.A.) These agents subscribe to professionalism and a code of ethics, and belong to a Provincial Association of Realtors (e.g.. the Nova Scotia Real Estate Association.) as well as a Local Board (ie. the Halifax Dartmouth Real Estate Board). They use the trademarked (and capitalized) term "REALTOR".

If a consumer had a complaint regarding an agent's business practice, he could contact the Halifax Dartmouth Real Estate Board and/or the Nova Scotia Real Estate Association Additionally, he could contact the Nova Scotia Department of Consumer Affairs.

Can the agent representing the seller divulge facts about your offer?

Answer:
Not only was this ethical, it was legally correct as well. The listing agent is employed to represent the seller in marketing the property. They form a legal relationship, based on trust, honesty, and diligence. In fact, anything the agent knows that might affect his client's position must be communicated to the client. This relationship with the seller filters down to include brokers and agents from other offices who could show the property as subagents (but NOTE that as of January 26th 1995 all agents are deemed to be working for the buyer with the exception of the listing agent and their salespeople.

It's required in Canada that the real estate agent must explain whom they represent to all parties in the transaction. If this was done, it should have been reclarified when you "volunteered" the information. It sounds like agency disclosure in general was not adequate based on your degree of surprise after revealing what you'd offer.

In addition, you had the right to seek representation of your own, should you require it. If this is important to you, you might consider hiring a buyer's broker as an agent to represent your interests or seek counsel from a real estate lawyer

How can we see everything available?

Question:
Our family is interested in finding a larger home, and since we know there's a lot of property on the market, we think it would be a good time to buy. Our concern is that we won't see everything available, particularly if we work with a real estate agent. What do you think?--UT

Answer:
I doubt that your true desire is to see "everything available"---but to find several of the best prospects from which to choose. Working with a real estate agent can accomplish that for you.

A good agent will listen to your needs and search through properties available (from both their own listings and those of the multiple listing service), weeding out the inappropriate ones. He or she will probably then show you several to get your feedback, and repeat the process again until you find the right home. Additionally, the agent is informed of new properties as they become available and also those which may be for sale shortly. What could end up taking you months on your own can be done in a timely and cost effective manner with the help of an agent.

One suggestion: Be candid with your feedback to the agent. When you see something you don't like, explain why. Point out features you do like in the homes you see. This can greatly assist the agent.

Inform the agent if you are not satisfied with his or her service. Believe it or not, you will be best served by dealing with only one committed agent, versus "shopping the field" with a variety of agents and brokerages. If you make the agent aware that you are committed to work with him or her, there is no reason why the agent won't do all in his power to work diligently with you as a buyer.

Can the agent give the buyer comparables?

Answer:
It's not only all right, it's a great idea. The listing agent probably did a comparative market analysis (CMA) before listing the property. This compared the property you're interested in to sales prices and terms of properties recently sold (usually within six to twelve months). These comps were similar in size, style, and amenities to the subject property and helped determine its listed price.

The agent would need to get permission from the seller in order to show you the seller's CMA (since it was prepared for the seller/client). However, there would be nothing wrong with the agent using information from other sold properties from brokerage files or from the Multiple Listing Service information to show you a range of values in the area. This information is usually accessed through a computer database, and is up-to-date.

If you're still in doubt, make your purchase contingent upon receiving an appraisal for the amount of your offer

All information provided is deemed reliable but is not guaranteed and should be independently verified.