Personal Trades

Personal Trades FAQ

Q1: What is the policy on personal trades at Greater Calgary Real Estate?

A1: To avoid any real or perceived conflicts of interest, real estate professionals at Greater Calgary Real Estate must process all personal trades (whether buying or selling) through the brokerage. This applies to primary residences, vacation properties, and commercial real estate transactions. The brokerage will charge the usual fees on these personal trades.

Q2: Do I need to disclose any personal involvement in a transaction?

A2: Yes, if you are personally involved in a transaction, or if you are representing someone you are closely associated with (such as a family member, spouse, or business partner), you must disclose this in writing to the client or customer. The disclosure ensures transparency and upholds ethical standards.

Q3: Can I represent a client while also pursuing my own personal real estate interests?

A3: No, real estate professionals cannot simultaneously represent a client and pursue their own interests in a transaction. In these situations, you must either:

• Refer the client to another agent within the brokerage,
  
  

• Seek assistance from an agent outside the brokerage, or
  
  

• Transition the client to a customer status, if applicable.
  
  

This ensures that clients receive fair and unbiased representation, and that conflicts of interest are properly handled.

Q4: What is required for me to proceed with a personal trade if I am representing a family member or business partner?

A4: When involved in a personal trade, such as representing a family member or business partner, you must:

• Obtain informed consent from all parties involved,
  
  

• Provide full disclosures of any potential conflicts of interest, and
  
  

• Use the REALTOR® Disclosure Statement to a Represented Person form (available on WebForms) to outline all relevant information as required by the Real Estate Act Rules, section 62(1) or REALTOR® Disclosure Statement to an Unrepresented Person (common law and designated agency)

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Once all parties have agreed in writing, the transaction can proceed with both parties being represented by the brokerage.

Q5: What happens if I choose not to take a commission on my personal trade?

A5: If you negotiate a lower purchase price or opt out of taking a commission on your personal trade, this must be reflected in the terms of the offer and the commission agreement between brokerages. Additionally, some brokerages may require you to sign an internal acknowledgment form. This form will confirm:

• You are not taking a commission on the transaction,
  
  

• The commission will be adjusted or not paid, as agreed.
  
  

Even if you are not receiving a commission, a transaction fee may still apply, as is standard practice within the brokerage.

Q6: Do I need to submit a Personal Interest Form?

A6: Yes, before delivering your offer, you must submit a Personal Interest Form (REALTOR® Disclosure Statement to a Represented Person) via WebForms. This ensures that your involvement in the transaction is documented and that all relevant disclosures have been made.

Q7: Are there any specific policies the listing brokerage may have for personal trades?

A7: Yes, the listing brokerage may have its own policies regarding commissions and personal trades. The listing agent should adjust the commission details on their ESRA (Electronic Service Record Agreement) accordingly to reflect any agreed-upon changes related to the commission or commission adjustments.

Q8: How does Greater Calgary Real Estate ensure transparency and ethical representation in personal trades?

A8: At Greater Calgary Real Estate, we are committed to maintaining transparency and ethical representation in all personal trades. In any situation where an agent is personally involved, we ensure that:

• All conflicts of interest are disclosed in writing to all relevant parties,
  
  

• The appropriate forms are submitted to document the disclosure,
  
  

• Clients are given the option to be represented by another agent to maintain impartiality.
  
  

We also make every effort to protect the rights of customers involved in a transaction, ensuring that they receive the highest level of professionalism and service.

Key Takeaways

• Disclosure is Mandatory: Always disclose any personal involvement in a transaction and get written consent from all parties involved.
  
  

• Transaction Fees May Apply: Even if commissions are not taken, transaction fees may still apply as part of the brokerage's policy.
  
  

• Use Required Forms: Make sure to use the REALTOR® Disclosure Statement to a Represented Person form for any personal trade or potential conflict.
  
  

• Ethical Representation: Our brokerage ensures that clients receive fair, unbiased representation, even when family or business partners are involved.
  
  

If you have further questions about personal trades, please contact the broker or conveyancing department for detailed guidance.