Sales Agent? Yes or No!

Cartoon Salesman Holding up Many Signs #11456 by Ron Leishman
Salesman

(Ontario)

Question:

I know that the Brokerage is the legal “agent” for the Seller, but what, if any is the role of the actual sales representative?

Answer:

The real estate salesperson (registrant) is actually in most cases, the “agent” at common law of the Seller for the purpose of negotiating and entering into a contract (Listing agreement) to authorize trading in real estate by appointing a Brokerage as his “Agent” pursuant to the statutory requirements imposed under the Real Estate and Business Brokers Act, 2002.

Under the Act, the person is likely an “employee” of the Brokerage. This is true notwithstanding that they may have an “independent contractor” status under the Income Tax Act. The reason is to impose vicarious liability upon the Brokerage for its employees.

The categories:

Seller appoints Brokerage as his “agent”.

Salesperson as an employee fulfills the Brokerage’s agency duties to the Seller

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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