Target Realty Corp. is an Alberta Licensed Brokerage with the Real Estate Council of Alberta (RECA).
Each of Target Realty Corp.’s representative is a fully licensed professional and adheres to the Laws of Agency as prescribed by RECA.
To understand the legal relationship you have with your Target Realty Corp representative it is helpful to know the following information.
There are different types of relationships that you are able to enter into to complete a commercial real estate transaction.
These are three of the most common relationships:
if a brokerage operates under designated agency, your agency relationship is with the industry member and not with the brokerage. Should the other party to a potential transaction be represented by another industry member in the same brokerage, there is no conflict, as each industry member will be in sole agency with their respective clients. This is a key difference between common law agency and designated agency. A designated agency relationship allows your designated agent to fulfill his or her full duties and obligations to you when the other party to a transaction is represented by another industry member of your brokerage.
Transaction brokerage is a model of concurrent representation, which allows an industry member to work with a seller and buyer in the same transaction. In transaction brokerage, a common law brokerage or a designated agent, as the case may be, becomes a facilitator and treats the buyer and seller in an even-handed, objective and impartial manner.
Transaction brokerage is an option clients may choose when a traditional (common law) brokerage is in a conflict of interest as a result of representing two parties (clients) in the same potential transaction. In a brokerage that practices designated agency, this occurs when the individual who is a designated agent is representing two parties (clients) in the same transaction. When this conflict occurs both parties are presented with options, including transaction brokerage.
The brokerage must obtain the consumer’s written and informed consent to transaction brokerage before this relationship may occur and before any offer is presented to buy or sell a property. In a traditional brokerage, if the other party to the potential transaction is represented by the same real estate broker or another broker employed by that brokerage, unless otherwise agreed to by the parties, the real estate broker needs to discuss the Transaction Brokerage Agreement with the party at the time this conflict occurs and seek the party’s informed, written consent to change the relationship from one of representation to one of facilitation.
In transaction brokerage, the agent (industry member) will now act as a transaction facilitator and provide facilitation services to assist the parties in reaching a mutually acceptable agreement. Facilitation services 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, and may include:
Finally, as a transaction facilitator, the agent will fulfill all other facilitation services to both parties as far as they are consistent with the terms of their respective agreements.
If a consumer does not want to have an agency relationship with an industrial member or real estate brokerage, but still wishes to work with an industry member with respect to a particular real estate transaction, that consumer may choose customer status.
If a consumer chooses customer status, the brokerage does not represent the consumer. The brokerage is not the consumer’s agent and does not owe the consumer fiduciary duties. The brokerage will not provide the customer any services that require the exercise of discretion or judgment, the giving of confidential advice or advocating on the consumer’s behalf.
However, a brokerage and its associates continue to have the following obligations to a customer.
If a consumer chooses to be a customer, an industry member may wish to have the consumer acknowledge that choice by signing a Customer Status Acknowledgement Form.
There are several reasons why a consumer might choose, or the brokerage might recommend customer status. This may occur when:
Industry members must make it knows to consumers they always have the option of choosing another brokerage to represent them rather than agreeing to customer status.