The Legal Issue - A Case of Buyer Beware

Exclusively Buyers Inc ( EBI Canada ) is a real estate brokerage dedicated to delivering unconflicted financial advice.  We practice a form of real estate brokerage known as exclusive buyer representation.

Consider the couple who embark on a local move.  They list their home for sale, and engage their listing agent to assist with the search for a new home.  What happens if they wish to purchase a home that is being offered for sale by their agent, or their agent's brokerage?  In legal parlance this is referred to as dual agency - a brokerage representing both buyer and seller in the same transaction.  In essence, the buyer must agree to be "represented" by the other side's real estate brokerage. 

In this situation, Ontario legislation prohibits the buyer's agent from giving advice on the asking price, or any other term or condition that may favour the buyer.  This diminishes not only the duties owed by the agent and the real estate brokerage, but the buyer's legal standing as well.  Should either party wish to pursue a subsequent legal action, it is significant that the buyer knowingly chose to engage the services of the listing brokerage.

When choosing a real estate agent to assist with your home search, it is imperative to take into account the homes listed for sale by that agent, as well as the agent's sponsoring real estate brokerage.  These are all situations of multiple representation.  Please consult with your legal counsel and see section entitled Code of Conduct.  EBI's clients are assured of single representation, and the expanded rights attaching to this legal state.