I specialize in real estate on the Bruce Peninsula: Homes, Waterfront, Cottages, Vacant Land, Acreages, and Commercial properties from Owen Sound to North Bruce Peninsula, including Sauble Beach, South Bruce Peninsula, Wiarton and along the shoreline. Google+

The Buyer's Representation Agreement


 

 If a Realtor you contact to see a property does not discuss the Buyer Representation Agreement with you, you should ask why.

Does this Protect me the buyer?

YES,Absolutely

Does this protect me the Real Estate Sales Representative? 

YES, Absolutely 

Buying a Cottage, or Home or investment property can be one of the largest investments we all make in our lifetimes, don't you want your interests to be represented?

Did you know all realtors work on behalf of the seller of a home and not the buyer? This is true, unless you are working with a rRealtor under a Buyer Representation Agreement.

By law, all realtors—even the one showing the home or cottage, listening to your dreams and your financial details—work in the best interest of the seller.  That is unless a savvy home buyer signs a Buyer Representation Agreement with a realtor who will work exclusively on their behalf during a home purchase. Without it, under the law of the agency, realtors must pass on any information that may influence the home-buying negotiations to the sellers of the home that their customers are bidding on; even how much they would pay for the home or any of their motivations!


Canadians now have two choices: customer relationship or client relationship.

A customer service agreement is a disclosure form that states that the realtor is NOT working for you as a buyer, but is providing customer service (fair and honest treatment, factual information about the property that is not visibly evident and to answer any questions you ask about the condition of the property) to you.

With customer status you are virtually "unrepresented" and in a "buyer beware" situation.  Sounds scary, doesn't it?

 

On the other hand, Buyer Representation Agreements state that the realtor is working for you and that you are bound to that realtor for the term of the agreement with a holdover period. In this case, your realtor is bound to you with these fiduciary duties: loyalty, obedience, full disclosure, duty to use skill, care and diligence, duty to account for all monies and to protect your information. An important fact for me is that it also allows the realtor to share his/her expert opinions, giving you full advantage of their knowledge and expertise. Furthermore, it then becomes their duty to answer questions that you may not even know to ask and their accountability is then much higher.

There is nothing in the Buyer Representation Agreement that states that you have to buy anything. It only states that if you do that you will use this particular brokerage and that they will be compensated for the service provided.


The best part is that there is no special fee to the client. Instead the realtor gets paid via commission that comes from the seller’s listing agent, just the way it has always been. Yes, that’s right, all that hard work for FREE!

How do you become a client? It’s easy—homebuyers sign an exclusive Buyer’s Representation Agreement with a realtor. Usually, the buyer agrees to work with the realtor for a specified period of time and the realtor agrees to represent the buyer’s interests to the fullest. That’s it!

Why not protect your interests?

Hire the person with the most knowledge to work on your behalf and to do it at no extra cost!
 

If you are not asked to be represented, I would ask Why?

The document should not be slipped into a stack of paperwork during an offer on a particular property, it's a little late in most cases.  This should be discussed at the first opportune time, and I would say that is when we are going to look at properties, so that you understand that I am working for you!

If you have any questions, please call me, and I would be happy to discuss further with you!

 

Please see below for further explanation of the agreement.