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Real Estate Talk:
Client-broker etiquette

The rules to be followed between brokers when selling real estate

By Joseph Marovitch

There are rules brokers follow between brokers when selling a property. To understand these rules, one must know the difference between a listing broker and a selling broker.

A listing broker is a broker who is selling a property. A selling broker is a broker that brings a client/buyer to visit the property that the listing broker is selling.

When buyers enlist a selling broker to find a property for them and to perform the paperwork, evaluation, negotiation and facilitate the notary, mortgage broker and inspector’s work, the selling broker must explain to their clients that should the clients visit an open house, the clients must inform the listing broker that the buyer has a selling broker who is representing them.

As well, should the buyers find a property they like via newspapers or the Internet, the buyers must inform their selling broker and allow the broker to arrange the visit.

If the buyer, who is represented by a selling broker, does not inform the listing broker at an open house, or if the buyer arranges a visit and does not inform the listing broker that the buyer is represented, the listing broker will assume the buyer is their client. As such, the listing broker is not obligated to pay the selling broker, who comes after the fact.

… should the buyer find a property they like via newspapers or the Internet, the buyer must inform their selling broker and allow the broker to arrange the visit.

It is proper etiquette that, should a selling broker come into negotiations after a buyer’s visit has taken place without the selling broker, the selling broker should inform the buyer that they may not be able to represent the buyer unless the listing broker agrees to the new party.

The brokers involved in the transaction to buy or sell a property are required to be the effective cause of sale, meaning the listing broker markets the property and the selling broker introduces the property to the buyer. The only way buyers know this is if the broker explains the protocol at the beginning of the relationship.

The selling brokers that do not explain this protocol to their clients and do not communicate the situation with the listing broker, and enter into negotiations after the fact runs the risk of working for the buyer without receiving any compensation since they are not the effective cause of the sale.

If buyers are represented by a selling broker, they must always inform the listing broker. If they wish to bring a selling broker into the negotiations after they found the property and arranged a visit due to the marketing efforts of the listing broker, they should speak with the listing broker and make sure the introduction of a selling broker to represent them is accepted.

Next article: Why brokers require exclusivity in the brokerage contract

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, go to the search link and type in Joseph Marovitch.

Have a great week!


State of the market

According to the Quebec Professional Association of Real Estate Brokers (QPAREB), residential property sales in Quebec increased in July by 21% with a 16% increase in Montreal sales and 35% in Quebec City sales.

Quebec performance contrasts with overall market performance across Canada where sales are lagging. Quebec is playing catch up. We lagged mainly due to political concerns. Money does not go where instability appears to be. As long as Quebec appeared to be attempting to divide from Canada, corporations and individuals were pensive about investing in this beautiful province. A strong and united country provides economic growth and stability.

‘There is no indication that our economy will slow down. If anything, the US is aiding in our appearance of stability and growth causing the US, European and Asia to consider Quebec as an excellent place to invest.’

There has been little discussion of separation for the past few years. Combined with economic growth, low-interest rates and low unemployment, Quebec has been prospering. There is no indication that our economy will slow down. If anything, the US is aiding in our appearance of stability and growth causing the US, European and Asia to consider Quebec as an excellent place to invest. Going forward, our real estate market is looking very bright and rosy.

August is a quiet month but it is an excellent month to prepare the house for market, and September is an exciting month in real estate, when everyone returns from vacation and interest in property rise. Check my last article, Prep in August, Sell in September.


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Read also: Other articles by Joseph Marovitch


Joseph Marovitch - WestmountMag.ca

Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or josephmarovitch@gmail.com


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