BUYER AGENCY AGREEMENT EXPLAINED

When it comes to just about every kind of contract, signing on the dotted line makes us all a little bit nervous.

When selling a home, most people are aware they sign a Listing Agreement with a REALTOR®. There is, however, an agreement that REALTORS® are now asking their home-buying clients to sign. It’s an agreement that works in favour of buyers, guaranteeing the very best in real estate service.

The Real Estate Council of Ontario (RECO), a public agency formed to protect consumers and regulate the industry, introduced guiding principles mandating that REALTORS® ask their clients to sign a Written Representation Agreement at the earliest possible time.

When choosing representation, homebuyers have the option to sign either a Buyer Representation Agreement or a Buyer Customer Service Agreement.

The Buyer Representation Agreement signifies that for a designated period of time, the buyer has engaged a specific REALTOR® firm to work exclusively on his or her behalf at finding a property. The agreement confirms the REALTOR®’s commitment to make his or her best efforts for the buyer.

By comparison, signing the Buyer Customer Service Agreement the buyer acknowledges the Broker has provided him/her with written information explaining agency relationships including Seller Representation, Sub-Agency, Buyer Representation, Multiple Representation and Customer Service.

For more information on this important subject, call your local REALTOR®. The term REALTOR® is designated to those who have chosen to belong to local, provincial and national real estate associations, agreeing to adhere to a strict code of professional standards that ensures the highest levels of service and integrity. In Toronto, local REALTORS® belong to the Toronto Real Estate Board, Canada’s largest real estate board, serving more than 24,000 Members.

1)  If I sign the Buyer Agency Agreement, how long am I under contract with the agent?

-  There is an "expiration date" on the agreement. Warning:  Be sure you are comfortable with the time period because it's legally binding once you sign.  You could be signing for six months or even ONE year. If you are not satisfied with your agent's services, the agreement cannot be cancelled.  When signing, you can instruct the agent that you are giving him/her only one month.

Extend the agreement if you are happy with the service.

2)  Before I choose an agent to represent me, what are the questions do I ask? 

You can ask these questions:

* Do you work full time or part-time real estate agent?

* How many years of experience do you have?

* What can I find in your website?

* Are you available anytime to show me homes?

* How are you compensated?

* What is the best way to contact you? pager? cell? via email? office 24 hr. available?

3)  Can a Buyer's Agent tell me if I'm paying the right price for a home?

Yes.  The agent can do a research for previous sales  to determine the value in the neighbourhood.  Based on the report, the agent can recommend the price you should pay.