They say the customer is always right, but sometimes this isn’t the case in real estate. 

What are lawful instructions

Lawful instructions are defined as legitimate, valid and enforceable instruction from a client in an agency relationship. As a REALTOR^®, you are subject to the will of your clients and must act in accordance with their wishes at all times, provided their instructions are lawful.

REALTip

Remember, a client’s instruction, lawful or not, do not override CREB^®'s Rules, policies or guidelines. When a client, buyer or seller signs our documentation (a seller or buyer Representation agreement or purchase contract) they agree to abide by our rules. If a client gives instruction that violates our rules, the REALTOR^® must either cancel the listing or list it exclusively. 

Here are three situations where a client’s instruction does not override CREB^®'s Rules, policies or guidelines.

Situation 1

A seller instructs their REALTOR^® not to report a transaction that occurred while the MLS^® Listing Contract was in effect. The seller requests that the listing REALTOR^® terminate the listing to avoid reporting the sale price.

This would be contrary to what was agreed on the Listing Contract as well as CREB^® Rules, which mandate that all sales be reported. This includes transactions that take place during the holdover period.

Situation 2

A seller is aware of a major structural material defect to their property and instructs their REALTOR^® not to disclose this fact to the buyer or their REALTOR^®.

This is clearly not a lawful instruction as it contradicts common law and all the documentation (listing agreement, purchase contract) we use in the course of selling property, our code of conduct, the Real Estate Act and the CREB^® Rules.

However, please note that it would be a violation of the REALTOR^® Code to disclose a defect that the owner is not legally required to disclose without written agreement from the seller.

Situation 3

A seller instructs their REALTOR^® to enter false data in the MLS^® System, such as listing the property as a two-storey when it is clearly a bungalow.

This is in violation of CREB^® Rules, advertising guidelines and policies. Any instruction given by a seller that would put a member in breach of any of the above may be lawful instruction from the seller, but the listing cannot be put in the MLS^® System. The seller has no right to instruct CREB^® or its members on what will or will not appear on the MLS^® System.

If a seller is making requests that do not comply with the MLS^® guidelines or CREB^® Rules, the seller is free to list exclusively with whatever terms and conditions the listing brokerage is willing to accept.

For more information on lawful instructions, contact CREB^® Member Practice at 403-781-1336 or mp@creb.ca.