1. Types of Agreements

2. Customer Service Agreement
A customer service agreement is open and non-exclusive, but it is for customers only
It is normally known as a relatively loose written/verbal agreement in which the owner gives a single or multiple brokerages the authority to either find a property for a buyer or a buyer for a property
All those who have not signed a Representation Agreement are customers
Customer service agreements are entered into when the individual does not wish to be represented

3. Customer Service Agreement
People sign customer service agreements so that the relationship is documented and they have a proper paper trail
The buyer acknowledges that the brokerage will provide customer service to the buyer, but will not represent the interest of the buyer in the transaction
In such a case, the brokerage may represent the interest of the seller as an agent/sub-agent
If the brokerage is representing the seller, the seller will be the brokerage’s client and the brokerage will protect and promote the seller’s interest and not that of the buyer

4. Customer Service Agreement
Brokerage’s duties to the buyer with whom they have signed a customer service agreement include:
Legal duty to exercise due care when they provide information and answer questions
Legal duty to not misrepresent anything
Ethical duty to deal honestly, fairly and with integrity
If the brokerage provides customer service or represents more than one buyer or seller for the same transaction, they must inform writing to all buyers and sellers the nature of their relationship to all parties at the earliest practicable opportunity before any offer is made

5. Customer Service Agreement
For example, Mr. Jones goes to an open house being held by Salesperson Brian from XYZ Realty Brokerage. Mr. Jones buys properties frequently and does not wish to be represented by Brian. He signs a Buyer Customer Service Agreement with Brian. Brian has not breached his Seller Representation Agreement by entering into a Customer Service Agreement with Mr. Jones. Brian owes Mr. Jones ethical and legal duties whereby he must exercise due care, avoid misrepresentations and deal fairly, honestly and with integrity.

6. Client Representation Agreement
Sellers Only (Clients) – MLS Exclusive
An MLS listing agreement is an exclusive agreement which is marketed on MLS
MLS (Multiple Listing Service) is operated by local real estate boards such as Toronto Real Estate Board
MLS listing gives the Listing Brokerage and Cooperating Brokerages the authority to sell the property
MLS listings are deemed to be advertisements and are regulated by the Competition Act
Therefore, you should verify that accurate information that is verifiable through source documentation

7. Client Representation Agreement
Two forms must be filled out for listing a property on MLS
Form 200/210
These forms are the Representation agreement or listing agreement and they make customers into clients
Data input form
The data input form is used to draft detailed data regarding the property
It consists of both compulsory and optional fields, including number of bedrooms, bathrooms etc.
Brokerages have the responsibility to ensure that all information listed is accurate and complete

8. Client Representation Agreement
Buyers and Sellers (Clients) – Exclusive
Exclusive agreement that gives one brokerage the authority to sell the property (for sellers) or help buyers buy a property (for buyers) during the Active Period
For sellers:
Representation Agreement / Seller Agency = Form 200/210
REBBA 2002 defines seller representation agreement as an agreement between a seller and a broker (Authority to Offer for Sale or for Lease)
If seller has signed this, the seller is your client and you are representing them
If seller has not signed this, they are your customer and the property cannot be listed on MLS

9. Client Representation Agreement
You must have a signed copy of the agency agreement or representation agreement
This is an exclusive relationship
Special initial is required if the Active Period lasts more than 6 months
Listing brokerage may cooperate if a cooperating brokerage brings in a buyer
For buyers
Any property, including a private property, that is purchased during the Active Period will be purchased via the authority of the buyer’s brokerage
REBBA defines a Buyer (Agency) Representation Agreement as an agreement between a Broker and a Buyer

10. Client Representation Agreement
If you have a Buyer Representation Agreement, the buyer is your client
This relationship is exclusive
If BRA is not signed, the buyer is your customer
BRA gives the brokerage authority to find property within a certain area (Markham, Toronto etc.), or of a certain type (single/family residential etc.) or for a specific period of time (Active Period)
You must have a signed copy of the agency agreement or representation agreement
Special initial is required if the Active Period lasts more than 6 months

11. Client Representation Agreement
Advantages of listing Exclusive instead of MLS Exclusive:
Fewer regulations since Local Board regulations will not apply to you
Seller may not want general public to have access to the property, especially if they are selling a luxury property
Seller may want neighbors to not find out that they have listed the property
The brokerage may be part of non-organized real estate, i.e. they may not be a member of the Local Board

12. Client Representation Agreement
Unexpired Listing Agreement
Brokerages are not entitled to claim commission if they know an unexpired listing agreement exists, unless the seller in writing agrees that they will pay a commission
If a seller has already signed a Listing Agreement with another brokerage, your brokerage cannot claim commission unless the seller has agreed to pay the same in writing
You can approach another brokerage’s customer (non-exclusive), but you cannot approach another brokerage’s client (exclusive)

13. Client Representation Agreement
Agency Brochure (Buyers/Sellers & Customers/Clients)
Signing this agreement reaffirms the relationship between the two parties
In case of clients, it reaffirms the Agency Agreement
In case of customers, it reaffirms Customer Service Agreement
It is typically signed to “set in stone” or reaffirm a relationship