Real Estate 101: What is the agency relationship?

(January 18, 2012 , posted in Real Estate 101 Series)

REALTORS® work within a legal relationship called agency. The agency relationship exists between you, the principal, and your brokerage, the company under which the individual representing you is licensed. The essence of the agency relationship is that the brokerage has the authority to represent the principal in dealings with others.

Brokerages and their licensees are legally obligated to protect and promote the interests of their principals as they would their own. Specifically, the brokerage has the following duties:

  • Undivided loyalty. The brokerage must protect the principal's negotiating position at all times, and disclose all known facts which may affect or influence the principal's decision.
  • To obey all lawful instructions of the principal.
  • An obligation to keep the confidences of the principal.
  • To exercise reasonable care and skill in performing all assigned duties.
  • To account for all money and property placed in a brokerage's hands while acting for the principal.


You can expect competent service from your brokerage, knowing that the company is bound by ethics and the law to be honest and thorough in representing a property listed for sale or lease. Both buyer/tenant and seller/landlord can be represented by their own brokerages in a single transaction.

Source: BCREA

As a Vancouver real estate consultant, my business grows by building strong client focussed relationships. I would welcome the opportunity to answer any questions about the real estate market.

If you would like to find out how much your condo/house is worth in today's market, to discuss listing your home or buying a new home, please contact me on (604) 781-5692 or via email - tim@timwray.ca

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