Our industry continues to be in turmoil even in Thornbury Ontario, over more than just a few unethical REALTORS®. So be it. I for one would voice my opinion to remove the double end (DUAL AGENCY) for individuals and teams. Just so we are all on the same page, This is where the REALTOR® represents the seller and the buyer in the same transaction.
First the majority of REALTORS® do follow proper protocol and make the deal work ethically for all parties, but some are thinking about their own personal gain. I believe the industry needs a clear separation of duties to protect the consumer. Selling or buying a property is for most, the largest financial transaction a person will do in their lives. How in the world can you represent two sides of the transaction without a moral and ethical turmoil playing havoc in your own mind,. You have a fiduciary duty to your seller client to get the best possible price and then represent a buyer and try to negotiate the best price for them…..How does that work? How could it work? My opinion…. It does not work for most buyers, they overpay or get leveraged into deals with no conditions or any unbiased due diligence.
At the same time the REALTORS® is basically trying to protect their litigious ass and when issues do arise it is considered a cost of doing business! Some would argue that it is the fault of our educators but the rules and regulations are clearly stated within the legislation and by the many bulletins and courses we take to continue in the industry. My question is how does CBC and other media outlets have the ability to create exposes of all this misconduct but our legislators cannot remove these criminals.
A friend I know purchased a home from a team in a small market. He was shown the property by one of the team members and thought this would be perfect for his family. He was asked by the team member, are you working with a Realtor, at that point he had no idea what he was doing and said yes I have an agent. The realtor piped up and said well we can work for you without any conflicts “we have a team” ignoring the comment that he had an agent. She signed him up and submitted the offer and who would guess, the property went into competition.The agent asked the buyer is this your best offer? Well he decided to up his offer price and go in firm with no conditions on her recommendations. It was a new home so what could go wrong. Well folks this is not Toronto and the big city. I have been involved in many multiple offers (even with bank owned properties )and only a fool would go in conditionless in a small market like Thornbury FYI Its the best price that will win! even with a condition or two I sold a condo in competition my listing, one offer 5k over asking no conditions the winner $10k over asking and conditional on finance home inspection and of course a status certificate. The local southern Georgian bay market does not have the volume of transaction and more importantly a majority are secondary homes. At minimum I would suggest at least a lawyer due diligence condition for 72 hours.
It would be interesting to see how the realtor dealt with the client customer conversation with her seller.The fiduciary duties of loyalty, obedience, and best interests require this “permission” to be obtained before the transaction has taken place not in just the Confirmation and Cooperation (where and how the salespeople get paid). The seller needs to acknowledge and accept this relationship, of course if you bring an offer with no conditions and above the listing price what seller would not accept the relationship. I go back to one of my original statements who is working for who? The buyer is getting hooped without proper separate representation.
I have a buyer client I have been working with for a minimum of three years, I have the emails to prove it. Well buddy went a little rogue one weekend this summer and asked a listing agent if he could view a farm in the area.The buyer was staying just down the road ans saw no issue. This farm is a tear down tenants have trashed the main building the owner lives next door in a newly built home and I think is looking just to off load it the property and land. The realtor never asked when booking the appointment was the buyer working with an agent. This may have sparked the buyer into calling me but whatever. At the showing the listing agent asked is there any interest? are you working with an agent? He said yes to both. The LA said well I can support both concerns and write the offer no need for your agent. The buyer was feeling uncomfortable about his general answers and knowledge about the land and the property. Later in the week the buyer called me to speak about the property and putting in the offer. I created two reports on the land, a CMA and a couple of links on how to plan for future use of the property. I called the listing agent, told him I was representing this buyer and yes he did not follow protocol and asked about a property line adjustment and an irrevocable that would work for the seller as we were in the process of writing an offer. Well the LA lost his marbles and started telling me how he was going to take half of the buyer commission due because he showed the property to the buyer and he was sick of showing his listing to buyers for other agents. Really? should I repeat that? you don’t want to show your seller’s property? why because you may sell it? What greedy asshole. I was livid and told him, that is not how the industry works! He basically said it does in his world as I will convince the seller to put it exclusive and not work with a cooperating brokerage…..yup sounds like a great plan for your seller to get best value for his asset. My buyer stated he will stay away from this listing agent, I am not afforded such convenience I have to show all properties that a buyer client would like to view even the greedy agents listings.
I should acknowledge that I have looked after both the seller and buyer in the same transaction but all have with a correct due diligence clauses. All have been on Commercial properties where both parties have numerous conditions and have their own lawyers accountants to assure they are getting proper advice on the transaction.
Hopefully you all agree its best practice to get the most eyes and people to view the property IE MLS to generate the most interest to ultimately garner the highest sale price. And get yourself a good trustworthy buyer agent