Ontario Real Estate Association (OREA) has developed a standard buyer representation agreement (B.R.A.) for buyer clients. Any licensed real estate salesperson in Canada can legally act as a buyer’s salesperson/broker. A buyer’s salesperson performs services for you that a seller’s salesperson can’t, such as showing you reasons NOT to buy a particular property.
A good buyer salesperson will include contingencies in the contract that protect you, rather than the seller as in most standard contracts, and keep confidential any information that could hurt your bargaining position. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting.
Bear in mind that the seller’s salesperson always works for the best interest of his/her seller. Brokerages have to disclose all relevant information they have on property defects to sellers. But brokerages must tell buyers only about material defects that render the property dangerous or unfit for habitation, not necessarily all defects in a property. That’s where a buyer agency comes in handy, being free to talk about anything that can affect the buyer’s interests.
When you decided to buy, the services of a qualified in real estate professional; salesperson acting as your buyer representative, is of utmost importance. The ideal buyer’s salesperson will have a good working knowledge of the local real estate market conditions, can advise you about current government programs that benefit consumers, provide you with insight into market trends, current market values of similar properties, add conditions and clauses in agreement of purchase and sale to protect you interest, offer information about the amenities of specific neighbourhood and have the support of a reputed real estate company.
Buyer Representation Agreement -Who Pays Commission?
The seller usually pays all commission to the listing brokerage who, in turn, forwards the appropriate portion to the buyer’s brokerage. Alternatively, the buyer’s brokerage can be paid directly by the buyer and, therefore, this amount does not form part of the sale proceeds. In most transactions, the commission to the buyer’s brokerage is paid via the listing brokerage from the proceeds of the sale. Smart buyers should not start their home search without signing a Buyer Representation Agreement (B.R.A.).