Buyers and sellers of homes are on different sides of perspective. What one is trying to achieve is usually the opposite of what the other wants to happen. A buyer wants to steal the property at the lowest possible deal while a seller wants top dollar transactions. But at the end of the arrangement, they share the same goal. Both of them just want a good sale.
Hiring a real estate agent to provide “ease of sale” is necessary to assist both of them. But they must be aware of the available claims in case of uncertainties.
Privacy, Confidentiality, and Fiduciary Duty
Montreal Real Estate agents always got your back whether you’re a buyer or seller. Agents are well-informed about their “fiduciary responsibility” to their clients. It is clearly understood that they are legally obligated to put their clients’ best interests in the first place.
This duty requires a very high standard of confidentiality. As a buyer, it is basically normal to become private about the intimate records of your financial information. Of course, a buyer will avoid giving direct financial details to the seller who has no legal obligation to keep the same. The same goes for the seller’s agent. A real estate agent must not disclose any financial information to the buyer. In some other cases, it is still applicable to disclose limited financial records. But your own agent would know whether any information the other agent is requesting from you has a reasonable assurance for the security of the sale itself.
In case of breach or fraud, you still have recourse if you’re buying a property and the seller’s agent has lied to you about the necessary information. This action could mislead you or make you disclose inappropriate and confidential records of your own. When you encounter transactions like this, you can report it directly to the agent’s professional association. Try to check their registration at the National Association of Realtors.
Lawsuits against real estate agents can be based on a number of different circumstances. A single claim may include allegations of negligence, misinterpretation, lack of disclosure, secret profits, conflict of interest, personal interest, and more. That is why both the client and the real estate agent must understand what the law governing their transaction.
Real Estate agents have contractual and fiduciary duties to their clients. In case they breach their duties, through negligence or other illegal reasons, they can be liable for damages. In other circumstances, real estate agents can also be liable to the other party involved in the real estate transaction. With these things written as law, agents must exercise “due diligence” in the performance of their duty. By being fully aware of their legal and professional liabilities, real estate agents can mitigate the risk of working in a very litigious industry such as the latter.
Any form of sale has its own set of risks. But you can recognize yourself as a smart buyer or seller when you acknowledge the perfect time to seek the help of the right person. A real estate agent has its own governing association so you are surely in good hands. If there will be unpredictable breach and fraud, the law will always back you up.