Understanding Transaction Brokerage

Transaction Brokerage replaces Dual Agency with Limitations for all brokerages on October 1, 2008. To help explain how transaction brokerage works, RECA will publish the answers to commonly asked questions in each Regulator.

What does “facilitation services” mean?
Common Law and Designated Agency

It means services by which the interests of the buyer and seller are met in an even handed, objective and impartial manner without providing confidential advice, advocating on behalf of either the buyer or seller, or using discretion or judgment that benefits the buyer or seller to the prejudice of the other. However, the industry member may facilitate for the mutual interests of the buyer and the seller in the transaction.

What are some examples of “facilitation services”?
Common Law and Designated Agency-

Facilitation services include:

• provide real estate statistics and other information through listing services or other local databases;
• assist the buyer and seller in negotiating a mutually acceptable agreement;
• provide standard form agreements of purchase and sale, lease and other relevant documents;
• prepare documents with the instructions of the client(s);
• provide the names of real estate appraisers, mortgage brokers, surveyors, building inspectors, lenders, insurance agents, architects, engineers and the like, but not recommend any particular professional;
• present in a timely manner, all offers and counter-offers to and from the client(s) regardless of whether the property is already the subject of a contract;
• convey to the client(s) in a timely manner all information that either wishes to have communicated to the other;
• keep the client(s) informed regarding the progress of the transaction, and;
• comply with the Real Estate Act and Rules.

For more information on Transaction Brokerage, including the complete list of FAQs and the Transaction Brokerage Industry Member Practice Guide, please visit the Industry Tools section of www.reca.ca.

 

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