Disclosure of Related Party under Code
If you are a real estate agent and you are selling your OWN house, you have to tell the other side. This applies even if you’re not the one listing it. That’s set out in the Act. You have to also indicate in writing anything that you know about the property, including what’s about the happen in the neighbourhood which would affect value.
When it comes to the “related party” disclosure, that’s something completely different. The obligation is set out in the Code. You only tell your own clients and your own customers. No one else cares!
If you are selling your daughter’s house, you only tell your own Clients and Customers. They are interested, since you are acting for them buying your daughter’s house, or they are competing with your daughter purchasing another house. There’s a potential and in fact actual conflict of interest.
But, what happens?
Agents fill out disclosure Forms and give them to everyone who walks in an Open House. These people don’t care!
When submitting an Offer for a son or daughter, they do the same thing. They fill out the form and give it to the Listing agent. Who cares! Again, it’s not required.
The confusion arises because there’s only one OREA form, not two. Agents use the Form as the source of information about disclosure rather than reading the Act and the Code.
Sale of OWN Property Sale of Son’s Property
Tell: everyone Tell: own clients and customers
Brian Madigan LL.B., Broker