First Things First -- AGENCY
byJoe Hough– Pelican Realty GMAC Real Estate

THE AGENCY RELATIONSHIP

Realtors are governed by the legal concept of "agency". An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person.

A REALTOR may be your agent - if you have clearly established an agency relationship with that REALTOR.. But often, you may assume that such an obligation exists when it does not.

REALTORS believe it is important that the people they work with understand when an agency relationship exists and when it does not - and to understand what it means.

In real estate, there are different possible forms of agency relationships:

1. VENDOR'S AGENT
When a real estate company is a "vendor's agent," it must do what is best for the vendor of a property.
A vendor's agent must tell the vendor anything known about the purchaser. For instance, if a vendor's agent knows a purchaser is willing to offer more for a property, that information must be shared with the vendor. Confidences a vendor shares with a vendor's agent must be kept confidential.
A purchaser can expect fair service and disclosure of pertinent information about a property. Nothing will be misrepresented about a property. All questions will be answered honestly.

2. PURCHASER'S AGENT
A real estate company acting as a "purchaser's agent" must do what is best for the purchaser.
A written contract establishes purchaser agency. It also explains services the REALTOR will provide, spells out who will pay and specifies what obligations a purchaser may have. Typically, purchasers will be obligated to work exclusively with that REALTOR for a period of time, usually under a signed Buyers Contract.
A REALTOR working for a purchaser will keep information about the purchaser confidential from the vendor.

3. CONSENSUAL DUAL AGENT
Consensual Dual agencies occurs when the Real Estate Agent is representing both buyer and seller in the same transaction or when the Real Estate Agent represents two or more buyers who are interested in the same property with the consent of each party to the transaction. Since the Agent has promised duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit their duties in this situation if both parties consent. Therefore, Sutton Group Preferred Realty has adopted certain rules and limitations, to deal with consensual dual agency situations. The limitations of consensual dual agency are:
1. That the Realtor will not disclose that the buyer will pay a price or agree to terms other that those contained in the offer, or that the seller will accept a price or terms other than those contained in the Seller's listing agreement.
2. That the Realtor will not disclose the motivation of the buyer to buy or the seller to sell unless authorized by the buyer or seller.
3. That the Realtor will not represent the interest of either the buyer or the seller to the advantage of one over the other and will therefore act impartially and act as a mediator.
4. That the Realtor will not disclose personal or financial information of either the buyer or the seller unless authorized in writing or unless failure to disclose would constitute fraud or dishonest dealings or unless the disclosure is required by law.
5 That the Realtor shall disclose to the buyer all material defects about the physical condition of the property know to the Realtor
6. That all "comparable" property information may be disclosed to both the seller and the buyer at any time
7. Where two or more buyers are interested in the same property and each of those buyers are represented by Sutton Group Preferred Realty Inc., as the agent, then the agent will not disclose the name of the buyer or the terms of any buyer's offer to any other buyer client.


WHO PAYS?
Usually, the REALTOR will be paid from the proceeds of the sale. The listing agreement states the REALTOR'S fee.

WHEN MORE THAN ONE REALTOR IS INVOLVED
Often, a purchaser will work with one REALTOR and a vendor will work with another. It may appear that the REALTOR working with the purchaser is working for that purchaser, in an agency relationship. That is not necessarily that case.
The REALTOR working with the purchaser may be a "sub-agent" of the vendor. In this case, the REALTOR is actually a vendor's agent. While a vendor's agent can provide many valuable services to a purchaser, he or she must do what is best for the vendor.
If a written contract exists with a purchaser, a REALTOR can be a purchaser's agent.
Purchasers and vendors will always be told --in writing-- who a REALTOR is working for.

A "Confirmation of Representation" form attached to the offer is the easiest and most straight forward method. Then there is no confusion, each party involved in the transaction signs and acknowledges who's working for whom.

Getting the Best Service
by Joe Hough - Pelican Realty GMAC Real Estate

If you are planning to purchase a home, you will be faced with many decisions. What comes first buying the next home or selling your present home. What is your price range, what area, size and style of next home etc.
Before getting the answers to the above question there is a major decision to be made. Which Realtor shall you choose to help you get through the maze of forms and give you the direction needed to successfully complete your real estate transactions.

Buying a home is too important to leave up to a committee. Some buyers like to leave their name with three or four salespeople. Although it may seem to be to the buyer's advantage to have a number of people to work with, it is usually a very ineffective approach. The basic assumption is that a committee of agents can produce more results than working exclusively with one Realtor. Like most committee assignments--everybody's responsibility is nobody's responsibility.

ONE REALTOR = COMMITMENT
You need the total commitment of one Realtor who you feel comfortable with and who will get to know and understand you, have compassion and empathy for your particular situation. Buying and selling a home is a journey that must be carefully plotted and mapped from the start to completion.
Tell this Realtor that you will work with them exclusively as long as you see the effort and work needed to get the job completed in fact you should (if you are a Buyer sign a Buyers Agency form with this agent to show your commitment, as well the agent should put in an escape clause for you the buyer if they do not perform or work actively for you. In this way you will have a dedicated Realtor who will make it his personal responsibility to handle all the details to get you to a successful completion of this real estate journey.

A REALTOR NEEDS CANDID FEEDBACK
A good agent will listen to your needs and search through properties that are available both their own and the Multiple Listing Service, then sort out the inappropriate ones. They will likely show you a number of homes and get your feedback and then continue the process until you have found the right home. Be very candid with your feedback, point out your likes and dislikes of the properties, your Realtor should have a copy of each of the listings you will be viewing, with a space on each of the pages for your written notes, you will not remember the likes and dislikes you have of each home after you have finished your entire showing tour. Make your notes immediately after viewing the home. Also remember it is in your best interest to view only a maximum of 4 to 5 homes on any one showing tour. It is easy to become confused when viewing too many homes at one time.

A Realtor is paid on a straight commission basis. They do not receive a salary or have an expense account. They are paid only after they have sold something and it successfully closes. This is why working with more than one Realtor is not a good idea. None of the Realtors will know if it will be to their financial benefit to spend any of their time or efforts in trying to find you a property, when you could possibly buy through another Realtor. Believe it or not, you will be best served by dealing with one committed Realtor as opposed to shopping the field with a variety of Realtors and Brokerages. By giving your commitment to one Realtor, the Realtor will work with the enthusiasm and diligent efforts required to successfully complete your transaction.

The Way Buyer Representation Works
by Janet Hough - Pelican Realty GMAC Real Estate

It does not cost anything extra to have someone by your side

Your REALTOR agrees to work with you to get the best price and terms on the best home that meets your needs and requirements.
Your REALTOR agrees to make a diligent search for homes that meet your needs and requirement s and you agree to make all inquires about properties through your REALTOR.
Your REALTOR agrees to protect your confidences.
Your REALTOR agrees to designate on the Confirmation of Representation form that the buyers agent will be paid from the commission as agreed in the MLS or Exclusive listing agreement. YOU WILL NOT HAVE TO SPEND ANYTHING EXTRA FOR THE SERVICE.

In order to assure that highest level of service, to protect your confidences and avoid conflicts of interest, you should execute a BUYERS REPRESENTATION AGREEMENT with your REALTOR. As in all cases when you sign any agreement PLEASE MAKE SURE OF WHAT YOU ARE SIGNING AND HOW LONG THE AGREEMENT IS IN EFFECT. IF YOU HAVE ANY QUESTIONS OR CONCERNS HAVE YOUR LAWYER REVIEW IT BEFORE SIGNING IT!!! AFTER SIGNING IT IS TOO LATE !!

How Realtors Work With Buyers
by Joe Hough - Pelican Realty GMAC Real Estate

THERE IS A RIGHT HOME FOR YOU !!....and it's your REALTOR'S job to find it in the specific area in which you wish to live. A REALTOR is not only familiar with the various neighborhoods and communities but also knows the best buys available for you. Your REALTOR belongs to the MULTIPLE LISTING SERVICE along with hundreds of other REALTORS. Want to know what properties are available ?? SEE YOUR REALTOR !!

IN-DEPTH QUALIFYING ANALYSIS.....there is no wasted time looking at properties that are either not right for you or that are out of your affordable range. A REALTOR matches the right property with your needs and price range. . A REALTOR that has conducted, with you, the IN-DEPTH QUALIFYING ANALYSIS, will understand your needs and financial status and will be able to tailor showings of homes that will FIT THE BILL. This service means you save time and effort that is normally spent in fruitless and frustrating searching.

HAVE A QUESTION ?? ASK YOUR REALTOR. A REALTOR'S job, is to know the neighborhoods and communities where you wish to live. Have a question regarding zoning, schools, churches, shopping, public transit, local utilities, Recreation programs, tax structure etc ? Ask your REALTOR. If he or she does not know the answer to the question they know where to get the correct answer, no one knows the neighborhoods and communities better than a REALTOR

AN OBJECTIVE VIEWPOINT....A REALTOR is a member of your local Real Estate Board, Provincial Association and Canadian Real Estate Association and is obliged to conduct business in accordance with the high standards of business practice and to a strict CODE OF ETHICS. This code requires that every question you ask regarding a property, will be answered honestly. This includes pointing out defects and highlighting advantages..they must give you full disclosure.

Finding What You Want
by Joe Hough - Sutton Group Preferred Realty Inc.

Through the multiple listing service and other sources REALTORS have access to almost all the available homes in the Southwestern Ontarioregion. Since seeing every possible property that could remotely be of interest in this vast area is virtually impossible.
Your REALTOR should conduct an "in-depth qualifying analysis" interview with you the purchaser(s) to determine your needs, requirements and your affordable range. Without this analysis interview your REALTOR is searching for "your dream home" with a blindfold on. A hit and miss proposition at best...think of all the time being wasted running from one property to the next not knowing what you really want or can afford. The analysis interview will help both you and your REALTOR in determining the following.

• PRICE RANGE is determined by not only your financial ability but also by your budget and goals. Knowing these parameters is essential if you REALTOR is to give you the kind of Professional Service you deserve.

• WHAT KIND OF PROPERTY DO YOU WANT?? Only you know what your like and dislikes are. Helping your REALTOR to understand what is really important to you in a home is another piece of necessary information.

• WHAT CONSTITUTES A GOOD LOCATION FOR YOU ?? This is question only you can answer but you have to consider the importance of your proximity to work, shopping , schools, access to major highways as well as how good are the schools in the area, are there recreation facilities in the area, what about park areas, access to public transportation etc.. Your REALTOR can help you get answers to many of these questions as they come to mind as well as dozens of others, as you work together to find your new home
Putting price, property likes and location together may involve determining which of these are the most important or to set up a priority list
of the 3 factors. But as your search goes on nothing is etched in stone it is okay to change your mind....most REALTORS know how to shift
directions..it happens all the time.
Once your REALTOR has a good idea of where to start they will go into the market place and prepare you a "most desirable list" for you to consider. What happens next depends upon you and how many properties match your likes and needs, how much time you have to look, what your time frame is for making a decision and when do you need to close or move in.
Your REALTOR can customize the approach to meet your needs and fine tune as the process unfolds.
JOB 1 IS TO GET YOU THE HOME YOU WANT !
A good REALTOR will stay with you until that happens.

Step by Step Buying Process
by Janet Hough - Pelican Realty GMAC Real Estate

1. Contact your Professional REALTOR, he/she will first of all explain how they will be working with you, in other words what AGENCY STATUS or RELATIONSHIP they will have with you.

2. Your REALTOR should conduct with you, an in-depth qualifying analysis to determine the price range of the property that would suit you the BUYER. If a mortgage is required your REALTOR can assist in the mortgage application and the process up to obtaining a mortgage commitment from a lending institution. We recommend getting a preapproval first so you know you right price range (what you can afford).

3. Review the features and amenities that you desire in a home.

4. Your REALTOR will select the most desirable properties in your price range via the MLS sort and select process, the ones that meet your requirements will then be presented to you to review, you should then choose the properties that you wish to view from the list ( this will be your "most desirable list" ).

5. Your REALTOR will the arrange to show you the homes that you have selected and put on your "most desirable list", obtain feedback from you after each showing(make sure you keep notes on each of the properties that you have been shown). When you have selected that home you want to own your REALTOR will prepare an Agreement of Purchase and Salewith all the conditions and safeguards requiredto protect your interests. If you have any concerns take the offer, before signing it, to your Lawyer to be reviewed--not after you have signed.

6. Your REALTOR will the on your behalf engage in the process of negotiations with the vendor ( sign backs, change of terms, etc. and continue this process until the offer is accepted and agreed to by all parties).

7. When the Agreement of Purchase and Sale is accepted by all parties, the property is sold, subject to thefulfillment of all conditions. Copies of the Agreement of Purchase and Sale go to the purchaser's and the vendor's lawyers. The buyer, then gives feedback to their REALTOR and if they are satisfied with the service, gives them an endorsement letter and agrees to refer friends and family.

8. When the transaction becomes a binding agreement ( all conditions are waived ) the Purchaser's lawyer searches title to determine :(a) if there are any outstanding work-orders issued by the municipality ; (b) an accurate description of the lawful use of the property; (c) any restrictions as to the insurability of the property; (d) any encumbrances on the title of the property ( undisclosed mortgages, right of ways, etc.).

9. The Purchaser's lawyer make requisitions to the Vendor's lawyer within the pre-determined date set out in the Agreement of Purchase and Sale.

10. The Purchaser's lawyer verifies the financing commitment with the lending institution.

11. When all searches are satisfied, the Purchaser's lawyer arranges with the lenders, for the transfer of funds on the date set for closing.

12. The Purchaser arranges for insurance coverage on the property from the date of closing, you include the day the property closes.

13. The purchaser's lawyer contacts the utility companies and the tax departments to determine the amounts, if any, that are outstanding so he/she can make closing adjustments.

14. Purchasers and Vendors meet with their respective lawyers to review and sign closing documents ( mortgage papers, deeds, declarations, and undertakings, etc.). This is usually done at least the day before closing some times even sooner, this depends upon the individual lawyer.

15. The lawyers for both the Vendors and the Purchasers arrange on the date set for closing to exchange documents, funds, keys and to register all documents on title, this is now done electronically in the Lawyers office.

16. The Purchasers the meet with their lawyer to obtain the keys, THE HOME IS NOW YOURS TO MOVE INTO.