New realtor rules should be a good thing

A past-president of the Central Alberta Realtors Association doesn’t anticipate problems from a new requirement that Realtors and their buyer-clients must enter into written service agreements.

A past-president of the Central Alberta Realtors Association doesn’t anticipate problems from a new requirement that Realtors and their buyer-clients must enter into written service agreements.

“Things aren’t going to really change, in terms of the service they get,” said Dale Russell, broker-owner of Re/Max Real Estate Central Alberta. “It’s just that now there will be a written agreement that outlines what we’re going to do.”

Effective July 1, the Real Estate Council of Alberta will require that buyers sign an agreement with their Realtor — or more accurately their Realtor’s brokerage firm — stipulating the services to be provided by the Realtor, the obligations and responsibilities of both parties, the basis upon which the Realtor will be compensated, and permission to collect and use the client’s personal information. Currently, only sellers of residential real estate typically enter into such agreements with their agents.

Russell thinks it’s a positive development that home buyers and their Realtors will now be required to do the same.

“This clarifies things for everybody involved,” he said, explaining that buyers often don’t know the nature of their relationship with a Realtor.

“We have no understanding with them or any discussion about exactly what it is that we’re going to do for that person.”

Problems that result include situations where a Realtor commits considerable time and resources to helping a buyer-client, only to see the buyer close a deal with another Realtor and leave them with no compensation.

“I don’t think that people intentionally set out to abuse the system or to abuse the process,” said Russell.

Instead, he said, it was a lack of understanding of how the industry works and how buyers’ agents are compensated.

There will be two types of service agreements: exclusive and non-exclusive.

Under an exclusive contract, the buyer will commit to work with one agent only; under a non-exclusive agreement, the buyer can deal with multiple agents.

The agreements can also specify the buyer’s obligation to compensate a Realtor, such as when there is no commission being paid by the seller.

Russell said the Real Estate Council of Alberta indicated in 2006 that it planned to implement mandatory service agreements for buyers, so brokerages and Realtors have had time to prepare.

“We’ve been doing it in our brokerage for six or seven years and we’ve never had a problem with anybody,” he said. “In my experience, people like to know how things work and what the rules are.”

But Russell also knows that many firms and Realtors will be implementing the agreements for the first time.

“There’s no question there’s going to be a little scrambling.”

Just Posted

Rural transit service rolled out

2A South Regional Transit will link Innisfail and Penhold with Red Deer

Some Red Deer waste collection schedules change due to holiday season

Tuesday collections will be moved for two weeks

Red Deer ‘champion’ helps hospital by sharing ongoing petition

It’s been about three years since many physicians at Red Deer Regional… Continue reading

Red Deer Airport’s prospects are looking up for 2019

Ultra-low-cost passenger service is on the horizon

Funding down for Red Deer Christmas charities

Food hampers and toys for children going out to those in need

Alberta’s Sundial starts shipping to AGLC this week

Sundial’s Rocky View facility has received the green light from Health Canada… Continue reading

Penny Marshall dead at 75, best known as TV’s Laverne and director of ‘Big,’ ‘A League of Their Own’

Bronx-born Penny Marshall, who found ’70s sitcom success on “Laverne and Shirley”… Continue reading

Chabot scores overtime winner to lift Senators over Predators 4-3

OTTAWA — Thomas Chabot saw an opening and he took it. And… Continue reading

Canadian Marielle Thompson earns World Cup ski cross bronze in season opener

AROSA, Switzerland — Canada’s Marielle Thompson captured bronze at the opening World… Continue reading

Canada doesn’t make Oscars short list for best foreign language film

LOS ANGELES — Canada is no longer in the running for best… Continue reading

Warrant issued for arrest of ‘Schwimmer lookalike’ suspect

LONDON — A British judge has issued an arrest warrant for an… Continue reading

Moneywise: Canadian workers unhappy with pay, want pension plans

Many working Canadians are feeling underpaid and are so worried about their… Continue reading

Brazil police say faith healer has turned himself in

RIO DE JANEIRO — A celebrity faith healer accused of sexually abusing… Continue reading

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

VANCOUVER — Nicola Froese says she has always loved playing sports, but… Continue reading

Most Read