Remember your duty to your buyer client
The Fourth House
(scenario from Introducing REBBA 2002: The Real Estate and Business Brokers Act 2001, published by RECO. Reprinted with permission.)
The buyer signs a buyer representation agreement including specifics as to the type of property wanted, namely a two-storey residential home in the $425,000 to $500,000 range in the West Ridge area of Anycity. The salesperson locates four listed properties meeting those specifications, three of which offer co-operating brokerages a commission ranging from 2.5% to 3%. The fourth is attractively priced, offers the same amenities but with a lower commission of 1.5% to the co-operating brokerage. The salesperson shows the three properties only and obtains an acceptable offer. Prior to closing, the buyer discovers that the fourth house was deliberately withheld and lodges a complaint with RECO. Disciplinary action is subsequently taken against the registrant.
Article 19 REBBA 2002
19. If a brokerage has entered into a representation agreement with a buyer, a broker or salesperson who acts on behalf of the buyer pursuant to the agreement shall inform the buyer of properties that meet the buyers criteria without having any regard to the amount of commission or other remuneration, if any, to which the brokerage might be entitled.
Members are reminded that they have a duty to their buyer client to show their buyer all properties that meet their requirements, even though it might mean a lower commission.