AGENCY EXPLANATION & ACKNOWLEDGMENT

Definitions:

In Alberta, a Broker/Associate Broker/Agent is licensed under the Real Estate Act and registered to a licensed real estate company called the Brokerage.

The Seller is the Client who engages a Brokerage to act on behalf of the Seller when selling real estate.

The Seller's Agent represents the Seller and is the licensed Brokerage including the Broker, Associate Brokers, and Agents. The Buyer is the Client who engages a Brokerage to act on behalf of the Buyer when buying real estate.

The Buyer's Agent represents the, Buyer and is the licensed Brokerage including the Broker, Associate Brokers, and Agents registered to it. The Agency Relationship: Realtors work within a legal relationship called agency. The agency relationship exists between you, the Client and the Brokerage, your Agent.

The essence of the agency relationship is that the Agent has authority to represent the Client in Real Estate transactions. Agents are obligated to protect and promote the interests of their clients as they would their own. Specifically, the Agent has the following fiduciary duties:

1. 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. Obedience- The Agent must obey all lawful instructions of the Client,
3. Confidentiality - The Agent has an obligation to keep the confidences of the Client.
4. Reasonable care and skill in performing all assigned duties.
5. Full disclosure of information that might affect the value of the property.
6. Full accounting for all money and property placed in the Agent's hands while acting fo the Client.

You are entitled to competent service from your Agent, knowing that the Brokerage is bound by ethics and law to be honest and thorough in every real estate transaction.

The Client has the duty to pay any agreed compensation to the Brokerage, where applicable.

Single Agency: Single agency occurs when both Buyer and Seller are each represented in a real estate transaction by their own Agent from separate Brokerages. Each Agent owes full fiduciary duties to the Client.

Dual Agency: Dual Agency occurs when one Agent, or two Agents from the same Brokerage, are representing the buyers and sellers in a transaction. Dual Agency also occurs when an Agent or the Brokerage represents competing buyers in a transaction. Since the Brokerage is working for both parties, it is necessary for the Agent(s) to follow rules to be fair to both. In real estate sales, the Dual Agent

1. will not, without prior written permission of the applicable Client, disclose to the other Client(s):
       i. that the Seller will accept a price less than the asking price (or a countered selling price),
       ii. that the Buyer will pay a price higher than the price offered,
       iii. the reason the Seller is selling and the Buyer is buying, and
       iv. the terms and conditions of competing offers;
2. will disclose to both parties all facts known to the Dual Agent that materially affect or may materially affect the marketability or value of the property.