1. Duties

2. Customer Duties
Customer duties are duties owned by the brokerage and salesperson/broker to the customer (3rd party)
Specific duties:
Should not make misrepresentations about property to customers
Take care in asking customer inquiries to insure accurate and complete information
General duties (MHD):
Legal duty not to misrepresent
Ethical duty to be honest
Duty to take due care when making disclosures

3. Client Duties (COLD-AC)
Competence – agent must exercise level of care expected from an average person in the occupation
Principal liable for agent’s actions
Obedience – agent must follow all reasonable and lawful instructions even if he doesn’t agree with it
Loyalty – most important duty because duties to client are above all else except the law
You must be loyal within scope of responsibilities
Disclosure – agent must disclose all information that is relevant to the transaction, i.e. any information that affects the desirability/value of the property and all material information that is known

4. Client Duties (COLD-AC)
Accounting – agent must account for all property, documents and money entrusted to them
Confidentiality – agent is not allowed to use information that they have acquired from the principal in a way that would harm the principal
Failure to perform duties owed may result in prosecution and liability from Registration authorities and the Local Board

5. Duties Clients Owe Brokers
These duties are outlined in the Representation/Service Agreements
Indemnification
Brokers are not responsible for any loss or damage during the period when a property is listed or sold, so long as they act in a lawful manner
If the agent acts without authority or in a manner that is unlawful, they will be held liable
For instance, if an agent constructs a house in a vacant plot that they have listed, they will be held liable
Indemnification in the Listing Agreement (Clause 7 of Form 200) now includes liability, loss, cost, claim, damage or injury that results from environmental problems or contamination

6. Duties Clients Owe Brokers
Remuneration
Brokers are entitled to commission for the services they provide
Commission is to be paid once the property is sold
In case of an incomplete sale, commission is still to be paid if the reason for the sale not going through is default or negligence on part of the seller/buyer
The broker has a right to take commission from the deposit before they disburse the remaining funds to relevant parties such as the lawyers
The seller must pay the broker any commission that is payable if the Deposit is not sufficient to cover the whole cost
The seller agrees to pay tax on the commission that is payable to the broker