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I don't mean to be flippant with my headline, but perhaps I have your attention. Too often I hear of people who thought they could do the job themselves in buying or selling a condominium home. Too often they're calling me after things go sideways, but it's too late for me to help them. Sometimes I even feel guilty because I write columns that some people feel have informed them enough to go it alone. Please hear my plea: don't do it!
Let's start with the selling side of a real estate transaction. Particularly in a strong market some sellers want to save the cost of brokerage fees and sell "FSBO", or For Sale by Owner. While some accomplish this, there are numerous cautions they should consider. The most commonly heard is that the property is not exposed to the MLS marketplace, which might have obtained a higher price. But even if the sellers allow a Realtor at their expense to represent the buyers, they themselves carry responsibility for their representation of their property.
The point is that there's no one between the sellers and the buying side. There's no one with a professional duty to confirm the facts, to take measurements, to ensure that required disclosures are made, or to share the civil liability in event the buyer wants compensation for an issue that arises after the sale is complete….or if for some reason it fails to complete. As we say in real estate, when things go bad, they seem to really bad really quickly.
From the buyer's side, some people like to shop show homes and resale homes without a Realtor, perhaps then buying a "FSBO" with no Agent for either buyer or seller, or accepting "customer" (non-represented status) with the Agent representing the home seller. These people have also put themselves in the position of having no one with professional responsibility and fiduciary duty to protect their interests. In short, if a major disappointment occurs, they have only themselves to blame, and perhaps have some hard-to-prove claim against the sellers and/or their Agent.
For both sides there tremendous value in having a qualified Agent--and even a specialist Realtor--working to protect their interests. That professional naturally incurs responsibility to do a good job. That professional is also civilly accountable if a good job is not done for the client, and can be sued by a truly aggrieved home seller or buyer. And while a Realtor is personally liable for a major oversite, it's also good to know that Realtors carry professional liability insurance, also known as errors and omissions insurance, through the Alberta Real Estate Insurance Exchange ("AREIX").
Beyond that, consumers in Alberta have protection against bad real estate operators through the Real Estate Assurance Fund, administered by the province's industry regulating body, the Real Estate Council of Alberta ("RECA"). For those who obtain a judgment of fraud or breach of trust against a real estate Agent who served them, the Fund pays up to $35,000 to compensate for any loss by an applicant, and up to $350,000 for all claims against a licensed real estate practitioner.
Whether you're buying or selling a home, perhaps a condominium home, you deserve a professional at your side, preferably a specialist in the field. If anything goes wrong, as sometimes it does, that person can be held accountable on your behalf. And they'll have an insurance policy to help pay the bill to you to set things right if you were truly wronged.
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