When buying or selling a home in Edmonton, St. Albert, or Sturgeon County, one of the first and most important steps is understanding how your relationship with a Realtor works. In Alberta, working with a licensed real estate professional means entering into a formal agreement that outlines your rights and your agent’s responsibilities. This document is called a Representation Agreement, and it protects both parties while ensuring transparency throughout your real estate transaction.
What Is a Representation Agreement?
A Representation Agreement is a legally binding contract between you (the client) and your Realtor. It sets out how your agent will represent your interests during the process of buying, selling, or leasing real estate in Alberta. The agreement defines the obligations, duties, and services your real estate professional will provide, as well as the compensation they will receive.
Why a Representation Agreement Is Important
In Alberta, the Real Estate Council of Alberta (RECA) requires that consumers understand the nature of their working relationship with their real estate professional. Whether you’re purchasing a condo in downtown Edmonton or selling a rural property in Sturgeon County, a Representation Agreement ensures that your Realtor’s duties are clearly set out and that you know exactly what to expect. It also clarifies who your agent represents, which helps prevent conflicts of interest.
Key Elements of a Representation Agreement
Type of Relationship – Specifies whether your Realtor is representing you exclusively or in a specific capacity (buyer, seller, or dual representation in some cases).
Services Provided – Details the marketing strategies, property searches, negotiation services, and other professional tasks your agent will perform.
Duration of the Agreement – Outlines how long the agreement will remain in effect.
Compensation – Describes how the Realtor is paid, including commission structure and payment terms.
Termination Clauses – Explains how either party can end the relationship if needed.
Types of Representation Agreements in Alberta
Buyer Representation Agreement – Used when you engage a real estate professional to help you purchase a property anywhere in Alberta, including Edmonton and St. Albert.
Seller Representation Agreement – Also known as a listing agreement, this is signed when you hire a Realtor to list and market your property for sale.
Transaction Brokerage Agreement – In some rare cases, one Realtor can facilitate a transaction for both a buyer and seller under strict disclosure rules governed by RECA.
Your Duties as a Client
While the Realtor has professional obligations, clients also have responsibilities. To ensure a smooth working relationship:
Be honest and forthcoming about your real estate goals and financial boundaries.
Communicate clearly and respond promptly to your Realtor’s requests for information.
Stick to the terms of the Representation Agreement unless a change is mutually agreed upon.
Understanding Agency Relationships
The term “agency” simply refers to the legal relationship between you and your Realtor. The Real Estate Council of Alberta outlines three main possibilities:
Single Agency – Your Realtor represents only you, and must act solely in your best interests.
Transaction Brokerage – A neutral role where one brokerage facilitates the deal for both parties, without undivided loyalty.
Customer Status – You receive basic services without full representation, which means the Realtor does not owe you fiduciary duties.
Benefits of Working with a Licensed Real Estate Professional
Working with a licensed Realtor gives you access to market insights, comparative data, and negotiation experience that can make a significant financial difference. Members of the Canadian Real Estate Association (CREA) have access to the Multiple Listing Service® (MLS®), ensuring your Edmonton or St. Albert property receives maximum exposure.
Final Thoughts
Before signing a Representation Agreement, take the time to review it carefully, ask questions, and understand every clause. A trustworthy Realtor in Edmonton or anywhere in Alberta will ensure you feel comfortable and informed. For more details on consumer protection and real estate representation, visit The Real Estate Council of Alberta (RECA) or The Canadian Real Estate Association (CREA).
Understanding your Representation Agreement is not just paperwork—it’s the foundation for a successful, honest, and transparent real estate relationship that helps you achieve your property goals in Alberta.
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