What is the difference between a REALTOR® and a Real Estate Agents?

Often people think real estate agents and REALTORS® are the same, but they are not.

A real estate agent is someone who has has obtained a real estate license and assists in buying and selling properties. Depending on thier specialty, Edmonton real estate agents can work with residential as well as commercial properties.

The definition of a REALTOR® is a real estate agent who is a member of a local real estate board, and of the provincial real estate association in the Realtor's province. They may also be a member of the Canadian Real Estate Association (CREA) however, membership is voluntary.

Most, but not all Edmonton real estate agents are REALTORS®. The majority of Edmonton REALTORS® (including us) are in good standing and belong to the Canadian Real Estate Association (CREA), The Alberta Real Estate Association (AREA) and the REALTORS® Association of Edmonton. This allows us to legally help our clients buy and sell real estate anywhere within Alberta. A few of us who do relocation moves also belong to the National Association of REALTORS® (NAR).

Edmonton REALTORS® Adhere to a Moral Code That Has Been in Place Since 1913. In order to be considered a Canadian REALTOR®, real estate professionals must adhere to a code of conduct and ethics that has been in place since the turn of the 20th century. This code is extensive and includes many disclosures to our clients. If a REALTORS® breaks the code, he is no longer allowed to operate as a certified CREA REALTORS®.

If you have questions or would like to know more about our Edmonton REALTOR® code of ethics, it can be found at https://www.crea.ca/standards-programs/realtor-code/

Alberta REALTOR® Fiduciary Duties

Real Estate Agents in the province of Alberta who are in an agency capacity for buyer or seller clients have duties mandated by the legal system called fiduciary duties. The position of the REALTOR® is a fiduciary capacity, acting in the best interests of the client.

• Obedience: Your real estate agent must obey your instructions as long as it is legal and in accordance with your brokerage agreement.
• Loyalty: Your real estate agent must be loyal and keep your best interests ahead of those of any other party, including themselves.
• Disclosure: In the province of Alberta, the law requires real estate agents, whether in an "agency" capacity or not, to disclose material facts to their client. Material facts are those that, if known by the buyer or seller, might have caused them to change their purchase or sale actions. In a signed agency agreement, your real estate agent must disclose more than the material facts. They must disclose all known or suspected information regarding the purchase of the property.
• Confidentiality: A real estate agents fiduciary duty of confidentiality means that nothing learned about you can be disclosed including your business, financial, personal affairs or motivations. This confidentiality fiduciary duty must be maintained for eternity.
• Accounting: Your real estate agent is accountable for all documents and funds in the transaction. Accurate reporting of the whereabouts of all monies pertaining to the transaction and the ultimate disposition. All documents are to be kept for at least six years.
• Reasonable Care: The words "reasonable care" are only finally fully defined in many cases by a judge or jury when it's too late to change your actions. Most Edmonton Real Estate Agents, as a rule of thumb, go by the ethics code "What we know, you know" when acting in an agency relationship.

Whether you work with a REALTOR® in Edmonton under a "customer status" or a "client status with a buyer brokerage agreement", before signing any paperwork including writing an offer, it is a regulatory requirement to present and discuss our Consumer Relationship Guide with you which includes the real estate agency relationship you have chosen to work under.

Why You Should Always Pull a Land (Property) Title Search

Basic information on a property title will include:

• The current owners' name: In the event of an estate sale, probate may or may not have been completed and your real estate agent will ensure the person selling the property does have power of attorney. In the event, there is only one person on the title in a marriage, a dower consent will also be needed to complete the sale.
• The Legal description: The municipal or mailing address is different from the legal description and includes a block, lot and Plan number.
• The amount of the last mortgage, any second or third mortgages or the original purchase amount at the time of purchase or there may be a nominal fee.

Other things which can be revealed on a property title search may include:

• Outstanding or owing property taxes, special assessments, delinquent condominium fees which have not been paid by the seller.
• Outstanding creditors including other financial institutions and businesses for things like unpaid vehicle loans, furniture stores, construction loans, personal loans, etc
• A lis pendens, which is normally added by a lawyer during divorce procedures and "freezes" the transfer of a property until all parties are satisfied.
• Easements and Liens from a third party, such as the municipality, utility company or Environmental liens, who may have rights to use part of your property.
• Covenants are restrictions on the land that can limit what can be built on it, where it can be built and from what materials it may be built. Breaching a covenant can have serious consequences so it is necessary to be aware of any covenants on your property.

It is important to pull the land title certifictae prior to writing an offer. If you wait until you go in to sign with your lawyer, it can cause closing delays.

What is a CMA & How to Use it

Edmonton real estate agents can provide comparative market analysis, also known as a CMA, for any property including properties subject to divorce, civil enforcement, foreclosures, estate sales, city tax purposes, etc. It takes time for real estate agents to complete accurate home evaluations. Unless you have plenty of experience in buying and selling real estate, online home evaluations may be completely misleading and should never be used as a realistic asking price.

Seller Comparative Market Analysis

When working with sellers, a comparative market analysis is used to determine a realistic and accurate asking price. A Seller CMA is based on comparable properties which are currently active (homes for sale), recently sold homes (usually within the last six months), expired (homes that did not sell for various reasons) and the history of these homes. Other factors will include the current market, supply and demand, condition of the property, location, community absorption rate and many other factors. Experienced, professional agents will take the time to go through all of this data with you, together with determining a true asking price for your Edmonton Home.

Buyer Comparative Market Analysis

When working with buyers, a comparative market analysis is similar to a bank appraisal and is used to write a reasonable offer to purchase. A buyers CMA is based on both current homes for sale and recently sold home price in Edmonton taking into consideration all relevant factors including the condition, size and location. For new builds, this process is a bit different and is based more on the cost to build, economic factors, building quality, and the reputation of the builder.

Free Comparative Market Analysis

If you are thinking about selling your home or if your home did not sell due to other factors, feel free to contact us for a professional no-obligation Edmonton home evaluation. We also service Morinville, Bon Accord, Gibbons, St. Albert, Spruce Grove, Beaumont and Devon. Our Edmonton Houses and Homes Agents will take the time to help, educate and inform you on all real estate aspects of your property to determine the right value for your home, ensuring you receive the highest possible price.

Does Your Bank Require an Appraisal?

Appraisals are an important part of buying and selling homes in Edmonton. Real estate appraisals establish Edmonton sold properties market value prices. Banks and financial institutions require property appraisals when buyers require a mortgage on their new homes as security and provide financial institutions with a cost-effective assurance of the properties value for lending purposes. 

Appraisals are detailed reports compiled by licensed real estate appraisers. Don't confuse a comparative market analysis, or CMA, with a real estate appraisal. A CMA is a sales report based on data entered into the multiple listing service, or MLS. Real estate agents use CMAs to help their clients determine realistic asking and offering prices.

An appraisal is also not the same thing as a property inspection. Home inspectors test appliances and outlets, check the plumbing and electrical, confirm heating and cooling system are in working order, use inspection tools to look for any moisture issues, missing insulation, etc. Such information is helpful for the buyer to know before moving in.

If your real estate appraisal comes in low, the bank may not lend you the money you need to satisfy your finance condition. You may need to come up with the difference in cash or re-negotiate the sale price of the property.