Could It Happen Here?

One of the many blogs I check out from time-to-time is the Canada Real Estate News. While visiting the site this morning I followed a headline link that ultimately lead to a New York Times article published yesterday.

The article is about a couple from California suing their real estate agent – alleging he mislead them, withheld information, and ultimately caused them to pay too much for their home. In terms of the article, I will stop there and let you follow the link to read the article in its entirety if you so choose.

I wonder if something similar could befall one or more members of the REALTORS® Association of Edmonton? I sure hope not…but I can’t help but wonder. I hope (and would expect) that all members, all the time, follow(ed) all the rules, all the time — even during the height of the buying frenzy that happened in Edmonton 18-months or so ago – when low inventory levels and fierce competition made it so difficult to help clients purchase homes. Despite all the unconditional offers that were written in an attempt to get buyers the homes they wanted, I hope every licensed member did everything they could to fulfill their fiduciary responsibilities to their clients; specifically that of undivided loyalty.

During that time it seemed every second offer I wrote for my Clients wound up in a multiple-offer situation. In every case, my Clients’ offers had (at a minimum) a home inspection condition. In many cases we were unsuccessful; no doubt because my Clients’ offers contained buyers conditions. However, my Clients’ were fully informed, knew they risked not getting their offer accepted because of the conditions, and understood the risks that can come with buying a home without conditions to protect their interests.

I recall one multiple-offer situation in which the sellers’ REALTOR® actually chuckled out loud after I had presented my Clients’ offer to his sellers. When I asked what was so funny he replied, “You know, in a multiple-offer only a fool would write an offer with conditions in it”. I firmly (but politely) replied, “And only a fool would advise their Clients not to complete a home inspection on a 20-year old home selling for over a half-million dollars”. As I was leaving the home owners shook my hand, thanked me for my Clients’ offer, and said, “We’d have done an inspection too”. In the end, after successful negotiations and a home inspection, my Clients took possession of the home.

Quoting from the current Agency Relationships brochure: ”The Agent must act solely in your best interests, must always put your interests above the Agent’s own interests and above the interests of other parties”.

As a buyer, you will be required to sign an Agency Relationships Acknowledgement — make sure you understand it and make sure your REALTOR® is fulfilling their mandate.

 

///…CP