What Does a Real Estate Agent Do?

Buying

What a real estate agent does for a buyer

Every agent in Ontario must walk you through RECO’s Information Guide before providing services, and the guide lists what an agent can do. Whether you hire one of our Ottawa REALTORS® or another registered agent, for a buyer that means:

• Helping you get pre-approved for financing, so you know what you can afford.
• Telling you about tax exemptions you might be eligible for.
• Finding neighbourhoods and homes that fit, and arranging viewings.
• Asking about zoning, permitted uses and anything else about a home.
• Advising you on competing offers, including how to protect what is in yours.
• Negotiating the price and terms with the seller.
• Guiding the paperwork to closing, and referring you to inspectors, lawyers or contractors.

None of it starts until you sign a buyer representation agreement: RECO says not to expect showings without one. What to check in it is in our first-time home buyer guide for Ontario.

The duties

What an agent owes you once you are a client

Section 8 of Ontario’s Code of Ethics, a regulation under the Trust in Real Estate Services Act, 2002 (TRESA), says an agent who represents a client “shall promote and protect the best interests” of that client. RECO’s guide spells out four duties:

• Undivided loyalty. Your interests take priority over those of the brokerage, its agents and any other party.
• Disclosure. They must tell you everything they know about the deal or your relationship that could affect your decisions.
• Confidentiality. Your motivation and the price you would pay or accept stay inside the brokerage unless you agree in writing, even after the relationship ends.
• No conflicts of interest. If one arises, they must tell you, and cannot keep serving you unless you agree in writing.

Section 9 of the Code asks for conscientious, courteous and responsive service with reasonable knowledge, skill and judgment. Section 11 requires an agent to send you to someone else for any service they cannot provide competently or are not authorized by law to provide.

REALTOR®

The difference between a REALTOR® and a real estate agent

“Real estate agent” is the general term. In RECO’s guide it means a registered salesperson or broker. REALTOR® is a trademark of the Canadian Real Estate Association (CREA), and in CREA’s words, “Not every real estate agent is a REALTOR®. Only REALTORS® are members of CREA.” Members accept CREA’s REALTOR® Code and its standards of business practice.

Locally, the Ottawa Real Estate Board describes itself as an association of 4,000 REALTORS® in the Ottawa area, and gives its members access to its MLS® System.

The REALTOR® Code also limits boasting. Its interpretation 15.2 says a claim such as “#1” or “top-selling” must name the area, the time frame and the source it rests on. A ranking that gives none of the three is a reason to ask questions.

Choosing an agent

How to check an agent before you sign

RECO gives buyers and sellers the same advice for choosing an agent:

1. Shop around. Ask family or friends who have used an agent, or look for one active in the neighbourhood where you are buying or selling.
2. Interview at least three. Ask about their experience in your neighbourhood and with your type of property, and the homes they have bought or sold recently.
3. Ask how they work. A buyer’s agent should explain how they will search and negotiate; a listing agent, how they will market your home.
4. Call their references. Ask each agent for past clients, then follow up with them.
5. Search RECO’s public register. It shows each agent’s registration number, status and expiry date, the brokerage’s broker of record, and enforcement activity in the past five years.

Then read the agreement before you sign, with a lawyer if anything is unclear. Every one of our Ottawa neighbourhood pages names the agent on our team for that area, which makes a good start on step two.