The definition of what is meant by “negotiations” in this context is the subject of much debate. The seller obviously wants the negotiations to be defined more completely than the broker wants in order to reduce the number of buyers subject to the queue. Regardless of the outcome of the negotiations, the listing agreement should be formulated in such a way that the broker is required at the beginning of the queue to provide the seller with a list of names to which the queue applies, thus avoiding unnecessary potential litigation. If the buyer consents to the transactional brokerage, he fills out a transactional brokerage form before drafting an offer. When an industry member is engaged in the brokerage of transactions, the rules of the Real Estate Act maintain an obligation to keep motivation and price confidential. This is not a change from previous practices. However, any other information kept confidential before and during the transactional mediation must remain confidential. The exceptions to the obligation of confidentiality are the same as for individual representation. In other words, the industry member must continue to disclose to the other party information that must be disclosed under the law or information that a customer authorizes. Under the existing rule, the transactional brokerage relationship (“TB”) is only available to a licensee who offers uniform obligations to both the buyer and seller in a transaction.
This regardless of the fact that the other party already has an existing brokerage relationship with another Real Estate AGENT®! In other words, if you work with a buyer in a transaction as a TB (a very common scenario) and the seller is represented by their own agent or TB (even more frequently), rule E-40 states that as the buyer`s TB, you have identical (uniform) obligations to both the buyer and the seller. Think of the outrageous implications of the current rule! Alberta consumers are always free to choose the type(s) of services they wish to order from a member of the Alberta industry. Buyers` brokerage contracts are not designed as a tool to force a consumer`s hand; rather, the opposite is true. The buyer`s brokerage contracts create clarity. The consumer knows exactly what to expect from their industry representative, and for this reason, there is an increased level of confidence that the industry member will promote and protect the buyer`s interests. .