Multiple Representation and You

  There has been plenty of controversy over the years in real estate circles about the issue of Multiple Representation commonly referred to as "double ending" or "dual agency."  Seemingly, a large majority of consumers do not know what Multiple Representation is yet it is something not to be taken likely with some REALTORS® failing to explain the implications.  This has become such a contentious issue that the Provincial Government has launched an investigation into the matter and I suspect we will see some changes coming in the future. In the next couple of posts I will bring some clarity to this matter.

  First and contrary to common belief, REALTORS® are not agents.  The Brokerage we work for is the "agent," we are either Salespersons or in my case I am a Broker.  Multiple Representation is when a real estate Brokerage and not just a singular Salesperson or Broker represents both a Buyer and a Seller in a real estate transaction and there are different examples as to how this can play out. 

 Few consumers understand that in legal terms there is a difference between being a client versus a customer.  When we enter into a Listing Agreement for a Sellers property, they become a client and we have a fiduciary duty to look out for their interest(s).  Similarly, when we enter into a Buyer Representation Agreement with a Buyer(s), we have established them as a client and similarly there is a fiduciary duty to protect their interest(s) as well.  If a party to a real estate transaction is merely a customer and not a client, no fiduciary duties exist.  Yes we must act honestly and truthfully with respect to dealings with a customer but we are not responsible for looking out for their best interests. 

  The simplest example of Multiple Representation is when I have a Buyer for one of my own listings. This is obviously Multiple Representation as not only myself but the Brokerage is representing both the Buyer and Seller in this transaction.

  If a Salesperson from my Brokerage represents a Buyer for one of my listings it is once again Multiple Representation as the Brokerage is representing both the Seller and the Buyer in the same transaction

  Here is where it gets a little trickier.  If two Salespersons from my Brokerage are representing two different Buyers for the same property that is listed with not only with our Brokerage but any other Brokerage such as ReMax or Century 21 etc. this is still Multiple Representation as our Brokerage is representing two different Buyer clients for the same property.

  When in Multiple Representation, the Brokerage must not share information or act in a manner that would compromise either party Seller or Buyer.  This includes not sharing the degree of motivation that a Seller or Buyer may have, why the Seller is selling, how much the Buyer is willing to pay or the Seller is willing to accept etc.  

  Every time I list a property for sale for a Seller client or when working with a Buyer Client I always make it a practice to explain in detail how these various representation scenarios may unfold.  It's not only a good business practice but disclosure of this information it essentially the law and it goes a long way to avoiding any misunderstandings during the transaction and or afterwards.

 In my next post I will delve into this matter further especially as it relates to situations when Buyers are in multiple offer situations which has become a regular occurrence in our market of late.  On the meantime if you should have any questions please do not hesitate to Contact Me.  My knowledge is always shared openly and freely.

  

Area MLS® Sales Soften in June

Over the past several weeks those of us in real estate have noticed the frenetic past of sales we have experienced in the first few months of the year market had slowed.  Fewer multiple offers, and when properties were listed with offers delayed to a future date, those dates came (and went) with no offers made. June's sales results would confirm that the market has slowed however it remains to be seen if this is the beginning of a trend. Personally I do not think so.

  MLS® unit sales as reported by the Southern Georgian Bay Association of REALTORS® (SGBAR) declined 18% from June of 2016.  A total of 254 sales were reported last month down from 308 in 2016 and 7% fewer than the 272 sales reported in June 2015.  Year-to-date MLS® unit sales total 1,392 properties, 14 sales or a mere 1% higher than last year.

  While sales activity may have cooled and perhaps only temporarily, the lack of inventory in our market is clearly having an impact.  New MLS® listings were down 13% in June and they remain 16% below the number of new listings that came to market in 2016.  Whereas new MLS® listings are said to have increased significantly in the Greater Toronto Area, we are not seeing the same trend here meaning it's still very much a seller's market.

 While MLS® unit sales are only marginally ahead of last year, year-to-dateMLS® dollar volume is up 27%.  This stems from the significant increase is property sales over $1 million.  To the end of June there have been 74 sales above $1 million versus just 2 such sales in the first six months of 2016.  Most of these higher dollar value sales are in the Blue Mountains which explains why single family home sales in that municipality are up 29% this year whereas most other area municipalities are showing a decrease in single family home sales year-to-date.  Through the end of June, MLS® dollar volume for the year totals over $634 million up from $499 million in 2016.  Baring a major slowdown in sales activity during the remainder of 2017, we are headed for another year of recording breaking MLS® sales that will exceed $1 billion and this does not include new home sales made by developers.

 See my next post for additional news about sales activity across the various municipalities in our region.  In the meantime, if you are thinking of selling or buying an area property, please feel free to Contact Me for a no obligation consultation about your specific real estate goals.