Searching for a home or property is not an easy task as it requires a lot of time, effort, good timing and good fortune. Making the wrong decision can be disastrous. The Buyer Representation Agreement is designed to help protect you when buying a home. It provides a framework for the agent to provide better service, source hot new properties and help you make a more informed decision.
Most people are familiar with the realtor Listing Agreement. When using a realtor Listing Agreement to list your home, the agent is strictly mandated by RECO to follow a code of conduct. You contract with the agent with the understanding and confidence that the agent;
- Is 100% working for you
- Will get you the best deal
- Is working in your best interests
- Will provide advice
- Will keep all information relating to you and your property confidential
- Will disclose anything relevant to the successful sale of your home
- Will disclose any known and relevant information about the buyer.
The same code of conduct, duties, obligations and benefits exist when you have a Buyer Representation Agreement in place when searching for a home. As with the Listing Agreement, the Buyer Representation Agreement exists for your protection. It can be used for specific properties, geographical locations and time period.
Commission paid on the purchase of a home is almost always paid by the seller at closing.
The Buyers Representation Agreement also provides an understanding that the brokerage will be paid for your agent’s time, expertise and service provided at closing, in the event the seller has agreed not to pay.
Public web sites that list homes SOLD and FOR SALE are useful sites to gain an understanding of neighbourhood home prices and sales activity when you are early in your search. When you become more serious about purchasing, then the Buyer Representation Agreement is strongly recommended. The benefit for you is that the agent;
- Is 100% working for you to find that new hot property before someone finds it
- Is working in your best interests ( not just providing honest, courteous service)
- Will provide advice (not just information)
- Will post in the Buyer Registry for all listing agents to see
- Will keep all information and feelings relating to your purchase confidential
- Will disclose anything relevant to the successful purchase of your home
- Will disclose any known and relevant information gained about the seller
- Provide new listings real time so you see good value properties first before they are sold. Public web-sites are typicaly 2-3 days late publishing data.
Not having a Buyer Representation Agreement in essence means that the buyer is working for the sellers agent who is under contract to the seller. Not a good situation for the buyer!