|
According to the TREB, "The job of realtors is to bring together willing vendors and willing purchasers in successful real estate transactions." Within these broad parameters, there are many possible types of Agency Relationships. WHAT IS THE RELATIONSHIP BETWEEN A VENDOR (SELLER) AND A LISTING BROKER? When a seller hires a realtor, the realtor is engaged as a listing broker. The seller and the realtor then enter into what is called an MLS Listing Agreement. This agreement states that the realtor is an agent working on behalf of the seller, and that the seller agrees to compensate the realtor - usually a commission, and usually payable upon successful completion of the real estate transaction.
A commission is usually a percentage of the purchase price, and is typically to be paid out at the end of a successful transaction. The listing broker is paid by the seller. In cases where another realtor becomes a co-operating broker, they are entitled to a share of this commission. When a co-operating broker is acting as a sub-agent of the seller, the buyer does not have to pay anything to them. However, where the buyer enters into a Purchaser's Agency Agreement with the realtor as a buyer broker, the buyer will compensate the realtor either directly, or indirectly through the listing broker.
The listing broker lists the seller's property on the Multiple Listing System. This is a call to other brokers to alert prospective buyers, and thus become co-operating brokers. In return, the co-operating brokers get a share of the commission paid by the seller. Listing brokers have access to the MLS, and are able to work co-operatively with other agents to get your property sold.
Buyers often hire a realtor when they are looking to buy a property. However, as the TREB states, "it is important to understand that by contracting a realtor, it does not necessarily mean that the purchaser has established an agency relationship with that realtor.
|
|
|
||
