When you work in an industry you develop a blind side. You develop a wealth of knowledge that is particular to that industry and that's where we tend to go wrong! We assume that those outside the industry have much the same working knowledge that we do and often forget to pass on the basic information.
This truly came to light the other night when Lisa and I were doing an information session on buying and selling your home. The things that we take for granted that everyone knows is where the stumbling blocks come in. Not everyone knows what the current interest rates are, and not everyone knows what legal documents are required for a real estate transaction.
Here are two of the basics that are required for every real estate transaction:
1.Working with a Realtor.
This is an overview of the relationship between a realtor and the consumer. Because buying and selling real estate involves a significant financial transaction, it is advisable to learn the legal and professional guidelines that define the working relationship.
There are three possible models that you can use to buy, sell or lease property through a real estate professional.
a/Designated Agency. This is where a brokerage designates a REALTOR®(s) to work solely on your behalf in real estate transactions. We and the brokerage are bound by ethics and the law to be honest and thorough in representing you.
b/Limited Dual Agency. This occurs when a designated agent represents both the buyer and the seller in the same transaction. A REALTOR® who has consent to represent both clients has very strict limitations imposed in the form of disclosure, privacy, confidentiality, etc.
c/Customer Relationship. You may also work with a REALTOR® without having any kind of agency relationship. For example, you walk into an open house and say I’ll take it! Again, the agent is restricted in the services they can offer to a customer. It's rather like going to the grocery store and picking up a sandwich as opposed to sitting down to dine with an experienced server at your elbow!
Whichever relationship you choose in working with your real estate professional, you will be asked to acknowledge that you understand the differences and will be asked to sign off on that. Remember, that your real estate professional is held to the highest standards of care and duty to you, our client and/or customer.
2. Individual Identification Information Record.
This is required for every real estate transaction. It is established by the Financial Transactions and Reports Analysis Center of Canada, FINTRAC for short! Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control. And yes, it is as heavy as it sounds! As real estate professionals we are required to ask for two pieces of ID, we record the type of government issued ID, the number, issuing date, etc. as well as your full legal name, address, date of birth and other identifiers. The mission of FINTRAC is to contribute to the public safety of Canadians and help protect the integrity of Canada's financial system. Just remember, this applies to everyone!
That’s it in a nutshell! The first two steps in the establishing a relationship with your friendly and professional REALTOR®. Here are the nuggets - REALTORS® are bound by ethics and law to behave in a professional manner, and your money is safe and in good hands with a careful watch on your privacy!
Call me with your questions or if you would like more in-depth information on either of these forms.
Call Aileen at (250) 588 - 1343
Email me at firstname.lastname@example.org