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Professional Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

Trading Services

1. Practice Standards

(b) Agency - View Entire Section

(III) Documenting the Agency Relationship

Sections 5-8 and 5-10 of the Rules require that the nature of representation that a licensee is providing must be disclosed in writing. As indicated above, while the nature of the representation is normally documented with a seller/landlord by way of a listing contract, the use of written buyer’s agency contracts, particularly in residential real estate, has not been as common.

Section 3-3.2 of the Rules requires that there be an agreement between a brokerage and a client if the intention is that designated agents, not the brokerage and all its licensees, are to be responsible for the agency duties owed to the client. This agreement must either be a written service agreement or, if there is no written service agreement, preceded by written disclosure of the nature of the relationship. The disclosure in section 5-10 of the Rules is useful in disclosing both the nature of representation to be provided, and matters addressed in section 3-3.2, but prudent brokerages/designated agents will want to confirm the relationship with a buyer/tenant in writing at the earliest opportunity by completing a written buyer’s agency contract.

[updated 06/15/2018]