Whether it’s a sign call, lead generation, realtor.ca contact, etc., these connections are always welcome! But before you agree to meet or show the property, be sure to find out if your prospective purchaser is already being represented by another REALTOR^®.

We’ve heard some members are learning too late that the person they hoped to convert into a client (or customer) was already exclusively represented by another REALTOR^®, which can lead to potential loss in commissions, time and patience. Unfortunately, there’s also a potential risk of CREB^® Rules and REALTOR^® Code violations.

Know if your leads are someone else’s buyer

The first question you should ask a prospective purchaser is whether they have a signed agreement with another agent. The next piece of information is equally important: if they have signed an agreement, they should review it and get a legal opinion about their obligations under that agreement.

Finally, don’t work with exclusively represented clients until their existing agreement comes to an end. Exercising this due diligence will keep you in compliance with the rules and save you the hassle of defending your commissions if another agent stakes a claim to the client down the road (CREB^® Rule Part II 4.01, REALTOR^® Code Article 20).

Don’t suggest your buyer view properties with another member

If you learn that a REALTOR^® has recommended their buyer view properties with you, the listing agent, instead of them, their contractually bound representative, you should speak to your broker to assist in navigating these situations. Although this is becoming more common, it runs counter to the rules.

Sharing clients is nothing new, but simply suggesting the buyer contact the listing agent to do the leg work of showing, while still intending to be the one to write the offer and collect the commission thereafter, isn’t permitted (CREB^® Rule Part II 4.03).

Have a plan

We know members get busy, and this is a great challenge to encounter, but it’s an important business practice to have a system in place to manage a surplus of clients. Whether a client is relocating, purchasing property far away or your availability is limited, if you’re unable to commit the time it takes to show the client properties, referring them to a trusted REALTOR^® who can meet their needs is a viable alternative.

When referring or jointly representing clients, it’s important to have written agreements in place that outline everyone’s responsibilities and how compensation is going to be managed. Having this framework agreed to in writing (and signed by all parties) from the start of the relationship will give everyone peace of mind and help the disbursement of commissions go smoothly when the deal closes.

Sound familiar?

If you have encountered a situation like what has been described above and you’re looking for resolution, these potential rule violations can be submitted as formal complaints to CREB^®. Check out CREB^®Link for more information on Dispute Resolution.

For more information on how to navigate these examples or similar practice issues, please contact Member Practice at 403-781-1336 or crebmp@creb.ca.