Pre-Listing Open House and the Buyer (what is the relationship?)

A fresh, bold perspective on multiple representation rules | REM | Real  Estate Magazine

Question:

I got a Buyer client from an Open House which I did prior to Listing to see if there was any interest. Now, I have a Buyer. What do I do?

Answer:

Potentially, this is extremely risky. I assume that you are under an implied agency agreement with your Seller already, even though you haven’t had them sign a Listing yet.

You required their permission from your Seller to take on the Buyer, since that is multiple representation. That is supposed to be documented now, not later.

I suspect that you got the Buyer after the Seller. So, what was your arrangement with them? You can have “agency” with respect to any property in Ontario for your Buyer except this one.

For this property, you need both the Buyer and the Seller to agree. If you had the opportunity to do it over, I would have suggested the Customer Service level for both, but, I think it’s too late for that now. Also, you cannot refer the file to a colleague without full disclosure and permission from BOTH clients, assuming that you do indeed have two clients (Seller and Buyer) now.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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