Question:
Am I allowed to speak to someone who is under an agency appointment either a Listing or a Buyer Representation Agreement?
Answer:
Are you allowed to speak to someone under contract? Sure, of course, you are, it wouldn’t make any sense otherwise.
Remember that you can obtain a second opinion if you are concerned about your doctor’s advice, your lawyer’s advice or your tax accountant’s advice. So, why not your real estate agent’s advice? Are they for some reason on a higher plain than those others? They are all Agents owing fiduciary duties to their Principals.
The stumbling block is contractual interference. That’s not allowed for any of them, but a “second opinion” is permitted.
For real estate agents, the difficulty will be that eventually you may not be able to take over the Listing or the BRA and get paid for it. That’s the challenge. So, most don’t bother.
I am approached several times per week by a person who is under contract, either directly by them or in most cases through their lawyer. The issue is: “can I sue my agent?” I am not looking to take over the Listing etc. but they are entitled to a response. There is nothing which precludes them from seeking a second opinion.
The result is that in many cases the agency appointment will be terminated, which is handled directly by their lawyer, and they will seek out someone else. I never take that Listing, nor do I make a referral. There is no question about “interference”. I am not motivated by the opportunity to intervene.
Second opinions are fine as long as they are handled properly.
Brian Madigan LL.B., Broker