1. Exercise care and A brokerage and its sales representatives must possess the necessary skills and knowledge to perform services on behalf of the principal at a level of competence expected of any prudent, reasonable person in the profession. A brokerage and its sales representatives must also ensure the completeness and accuracy of all information provided and recommend relevant experts (a minimum of three per service provider) where applicable, to ensure that principals are well informed. The obligation to exercise care and skill also extends to customers. 2. Negotiate favourable The brokerage and its sales representatives must diligently advance the principal’s interests by assisting in negotiations and drafting favourable terms and conditions for agreements arising from such negotiations. Accordingly, a brokerage and its sales representatives must possess the necessary knowledge and skills to successfully negotiate agreements and also ensure that legally binding agreements are drafted on behalf of its principals. 3. Maintain confidentiality Trust is critical to the agency relationship. Accordingly, the brokerage and its sales representatives must maintain confidentiality regarding all matters that could adversely impact the principal or in any way undermine the principal’s position during negotiations. All Information received from the client or obtained as a result of representing the client must be kept confidential. For example, the client’s personal information, motivation for selling/buying, the amount to be paid or accepted during negotiations. This duty of confidentiality survives termination of the agency agreement and the closing of the transaction. 4. Disclose information A brokerage in agency, including its sales representatives, has a duty to disclose information broadly grouped under two categories: Information pertinent to the principal/agency relationship (i.e. actual or potential conflicts) Matters relating to the transaction (i.e. situations or events involving the property, the or third parties) that impact the principal. The first category relates to fiduciary obligations, see the following section on fiduciary obligations, while the second is viewed legally as a general obligation applying to all sales representative/principal relationships. Both duties assume forthright disclosure before the principal makes a decision or takes and action affecting his or her interest.
1. Exercise care and A brokerage and its sales representatives must possess the necessary skills and knowledge to perform services on behalf of the principal at a level of competence expected of any prudent, reasonable person in the profession. A brokerage and its sales representatives must also ensure the completeness and accuracy of all information provided and recommend relevant experts (a minimum of three per service provider) where applicable, to ensure that principals are well informed. The obligation to exercise care and skill also extends to customers. 2. Negotiate favourable The brokerage and its sales representatives must diligently advance the principal’s interests by assisting in negotiations and drafting favourable terms and conditions for agreements arising from such negotiations. Accordingly, a brokerage and its sales representatives must possess the necessary knowledge and skills to successfully negotiate agreements and also ensure that legally binding agreements are drafted on behalf of its principals. 3. Maintain confidentiality Trust is critical to the agency relationship. Accordingly, the brokerage and its sales representatives must maintain confidentiality regarding all matters that could adversely impact the principal or in any way undermine the principal’s position during negotiations. All Information received from the client or obtained as a result of representing the client must be kept confidential. For example, the client’s personal information, motivation for selling/buying, the amount to be paid or accepted during negotiations. This duty of confidentiality survives termination of the agency agreement and the closing of the transaction. 4. Disclose information A brokerage in agency, including its sales representatives, has a duty to disclose information broadly grouped under two categories: Information pertinent to the principal/agency relationship (i.e. actual or potential conflicts) Matters relating to the transaction (i.e. situations or events involving the property, the or third parties) that impact the principal. The first category relates to fiduciary obligations, see the following section on fiduciary obligations, while the second is viewed legally as a general obligation applying to all sales representative/principal relationships. Both duties assume forthright disclosure before the principal makes a decision or takes and action affecting his or her interest.