How Does a Real Estate Agency Work?
In Ontario, the real estate profession is governed by the Real Estate and Business Brokers Act, 2002, and Associated Regulations (REBBA 2002 or Act), administered by the Real Estate Council of Ontario (RECO). All Realtors in Ontario are registered under the Act and governed by its provisions.
REBBA 2002 is consumer protection legislation, regulating the conduct of real estate Brokerages and their Salespeople/ Brokers.
The Act provides consumer protection in the form of deposit insurance.
The Act also requires every Salesperson and Broker to carry errors & omission (E&O) insurance.
When you choose to use the services of a Realtor, it is important to understand that this individual works on behalf of a real estate brokerage, usually a company. The Brokerage is operated by a Broker of Record, who has the ultimate responsibility for the employees registered with the brokerage.
When you sign a contract, it is with the Brokerage, not with the Salesperson or Broker employee.
The Act also requires that the Brokerage explain the types of service alternatives available to consumers and the services the Brokerage will be providing.
This is typically done through the Brokerage’s Sales Representatives and must be done as soon as possible.
Further, the relationship being created between the Brokerage and the consumer must be documented on the appropriate form(s) and submitted to the consumer for his or her approval and signature.
The most common relationships are “client” and “customer”, but other options may also be available in the marketplace.
Contact an Avenue Realty Inc., Brokerage Realtor to learn more about the different types of working relationships that are available and the services included in each.