TGIF: New Rules - Disclosure of Representation in Trading Services
We as realtors are subject to a number of new rules imposed by the Real Estate Council (our regulatory body) over the past 2 months. They are designed to protect you, the consumers. What we have discovered during this time is that while we have been taking courses to fully understand and play by these rules, a couple of them take the consumers by complete surprise. When we meet with sellers or buyers for the first time, we may give full information, explain the process and how we work but are not permitted to dispense any advice including an interpretation of data to give an opinion of value with regard to a potential list price or an appropriate offer to present on the buying side. UNTIL the seller or buyer has been presented with the new ‘Disclosure of Representation in Trading Services’ and agreed in writing to designate our team (or another realtor) as the consumer’s exclusive realtor. This can cause confusion when sellers are interviewing realtors in order to get opinions of value. This particular new rule is designed so that realtors who will not be representing you either buying or selling are not privvy to your reasons for buying or selling or to any other pertinent private information which could be used during a negotiation where that realtor was representing the other party. We cannot engage in conversations with buyers at open houses which could lead them to believe we are working for them when we are permitted to be working only as designated agent for the seller. Similarly, without the designation as your agent at seller interviews, we must not allow any conversations with regard to your motivation or any other personal information.
This requires rethinking the process in order to stay within the rules for us and for you, rethinking the reasons you would select a listing realtor. It is all about a “good fit” with your real estate team:- Do you trust their expertise and competence and that they will do as they say? Do you feel that they will be empathetic and helpful to your special needs? Are they demonstrating that their negotiating skills will make a difference to your outcome? Are they supplying all the information with regard to sales activity in your neighbourhood? Would you feel confident that they are representing you? It is all about relieving the stress which every seller experiences. The price will come naturally as a result of satisfying the above. And the last little comfort zone is that you will still be agreeing to and signing a listing contract which you will do only when you are in agreement with the terms.
We are including a video with this so that may clear up any confusion remaining after you have read this. Any further questions, please contact us.
Change is nothing new to us - I remember when a sales contract was 1 page in the Wild West real estate times!
We all wish you summer fun - Michelle, Scott, Sheila, Ray and Shane.
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