An summary of the relationship between you and your REALTOR®.

At some point your agent will present you with a two-page document called Working With the Real Estate Industry. This document is a mandatory disclosure form approved by the Nova Scotia Real Estate Commission (NSREC). It explains the different types of relationships that can exist between consumers and real estate brokerages/licensees, as well as the rights and responsibilities of all parties involved. It is a disclosure document only and does not create a contractual relationship.

1. Two Agency Models in Nova Scotia

Common Law Agency

  • The agency relationship is with the brokerage.

  • All agents within the brokerage represent all clients of the brokerage.

  • Every agent owes clients:

    • Loyalty

    • Advocacy

    • Advice

    • Confidentiality

  • Because all agents represent all clients, conflicts can arise when the same brokerage represents both buyer and seller in a transaction. In such cases, transaction brokerage, referral, or unrepresented-party arrangements may be necessary.

Designated Agency

  • The agency relationship exists only with the specifically designated agent(s), not the entire brokerage.

  • Different agents within the same brokerage can represent different parties in the same transaction.

  • Brokerages must have policies in place to protect confidential information between clients.

  • This model allows both buyer and seller to receive full representation from different designated agents within the same brokerage.

2. Duties Owed to Clients

When acting as your representative, a brokerage or designated agent must:

  • Protect and promote your interests.

  • Protect your negotiating position.

  • Disclose relevant facts and material latent defects.

  • Obey lawful instructions.

  • Provide undivided loyalty.

  • Act in your best interests.

  • Maintain confidentiality.

  • Exercise reasonable care and skill.

  • Account for money and property entrusted to them.

Agents also assist with:

  • Explaining real estate terminology and processes.

  • Preparing and presenting offers.

  • Negotiation assistance.

  • Explaining forms and agreements.

  • Recommending professional advice when needed.

  • Keeping clients informed throughout the transaction.

3. Conflict of Interest Requirements

A licensee cannot continue providing services where a conflict of interest exists unless they:

  1. Disclose the conflict.

  2. Recommend the client seek independent advice.

  3. Ensure the client understands the conflict.

  4. Obtain the client's written informed consent.

4. Transaction Brokerage

Transaction brokerage occurs when a brokerage or designated agent acts as an impartial facilitator for both buyer and seller in the same transaction.

What the Facilitator Can Do

  • Explain real estate terms and practices.

  • Identify and estimate service costs of other professionals involved.

What the Facilitator Cannot Do

  • Be fully loyal to either party.

  • Act in either party's best interests.

  • Provide advice or recommendations.

  • Share confidential information from previous relationships.

Both parties must consent in writing before transaction brokerage can occur.

5. Unrepresented Party Relationship

A buyer or seller may choose not to have agency representation.

In this case, the licensee:

  • Must provide honest and accurate information.

  • Can explain real estate processes.

  • Can discuss service costs of other professionals.

However, the licensee cannot:

  • Act in the person's best interests.

  • Provide loyalty.

  • Offer advice or recommendations.

  • Protect confidential information in the same manner as an agency relationship.

6. Privacy and Personal Information

The form explains how personal information is collected, used, disclosed, and retained.

Information may be shared with:

  • Brokers and brokerages.

  • Other brokerages.

  • Potential buyers.

  • Appraisers.

  • Government agencies.

  • The Nova Scotia Association of REALTORS®.

  • NSREC.

  • Public MLS® and REALTOR.ca systems where applicable.

Brokerages are required to retain records for at least seven years.

7. Buyer and Seller Responsibilities

Consumers should:

  • Carefully read all documents before signing.

  • Seek professional advice when needed (lawyers, inspectors, accountants, engineers, surveyors, etc.).

  • Obtain written confirmation of important details.

  • Discuss expectations and availability with their licensee before entering a service agreement.

Key Takeaway

The primary purpose of this form is to ensure buyers and sellers understand:

  • The type of agency relationship they may have with a brokerage.

  • The duties owed to them under different forms of representation.

  • How conflicts of interest are handled.

  • The limitations of transaction brokerage and unrepresented-party relationships.

  • How their personal information is collected, used, and retained.