However, after first identifying and revealing the nature of the agency relationship, it should take some time for the licensee to prepare the offer to review all aspects of the transaction. For example, there is nothing in the law or in the code that sets the length of the notice period for a general agency. The practice of the industry usually lasts between 7 and 14 days. Yes, yes. Section 5-9 (2) requires disclosure of a licensee`s participation in the acquisition of real estate “where a licensee or associate partner intends to acquire real estate currently held by another person through the acquisition by a third party who must then transfer the property to the licensee or associated company.” In this case, the disclosure of interest in the trade must be made available to the original seller (neighbour) and the original buyer (Mary`s friend) and this disclosure must be made before the friend`s offer is made to the neighbour. As with other forms of disclosure, the purpose is to provide relevant information to a person who has the right to know that information, at a time when that information can be used for an informed decision. When a client asks a taker to make a transfer to a financial institution or mortgage broker, the underwriter must be very careful to avoid any discussion of possible mortgages. While licensees are not expected to be experts in the waterfront regulations, they are expected to be attentive to the effects of RAR and be required to advise clients who purchase, sell or develop property affected by the legislation in order to obtain independent professional advice. The case of Rieger v.
Croft – Finlay 69 Yes is a case that has highlighted the obligations of buyers` representatives to their customers. Henry, the holder of a real estate license, must complete and make available to the purchaser a disclosure form of interest for the trade before a transfer agreement is reached. Unless there was a prior intention on the part of the purchaser to acquire the property for the specific purpose of the sale to Henry, Henry is not required to disclose to the seller an interest in the business. Both licensees are also subject to disclosure of a conflict of interest and the obligation to seek the seller`s consent and submit an assessment. You must always act in the best interests of your client, whether he is a buyer or seller. The code of conduct establishes specific rules for buyers` representatives: Section 7 of the RESA provides that a licensee cannot accept compensation for the real estate services of a person other than the brokerage company for which it is authorized. For a licensee to receive compensation, such as. B, from the cost of transferring a buyer to a financial institution or mortgage broker, the remuneration must first be paid to the real estate agent. However, if you do work before the cancellation of the contract leading to the sale of the property, the terms of the agency contract are legally binding.
Step 2: You must always disclose the amount (or the likely amount or method of calculating the amount). An effective way would be to provide a buyer/client with a copy of the MLS ® information that respects the property concerned, including the remuneration offered to a cooperating broker. This would be effective disclosure as long as the total amount or method of calculating the total amount is clear (for example.B.