Agency: What Takes Precedence the Code or Common Law in Ontario?

Question:

REBBA 2002 requires a written agreement but then Agency Law states that it is not necessary to have a written agreement. Which would take precedence? 

Answer:

The Act does not actually refer to “agency”, only “representation”.

The issues you raise are covered in s. 10 through 17 of the Code. The intention is to have the relationship:

  1. explained,
  2. instructions sought,
  3. decisions documented, and
  4. decisions confirmed.

Obviously, this would be done in writing. However, the Principal need not sign.

What documents should the agent utilize:

  1. explanation, Working with a REALTOR® ,
  2. instructions, Working with a REALTOR® ,
  3. decisions, Buyer Representation Agreement, Listing Agreement and
  4. confirmation, Confirmation of Cooperation and Representation.

When it comes to agency law, those rules will apply no matter what. And, we can have agency relationships created verbally or by implication arising from the conduct of the parties. So, that can actually take place without any paperwork.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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