In all important transactions and agreements, we depend on written contracts to make things fair, to protect us from questionable practices and to ensure certain conditions are met by everyone involved.
However, sometimes contracts are intentionally written to be confusing. “Fine print” can sometimes be used as a weapon against those who don’t read their contracts thoroughly. For all these reasons, the average person is easily intimidated by contracts.
In real estate, there is a very important document which many people are reluctant to sign, called a buyer representation agreement.
However, unlike many contracts we’re forced to deal with, the buyer representation agreement is NOT one of those documents written to work against you.
In fact, it is designed first and foremost to protect both the buyer and realtor.
The buyer representation agreement guarantees that the realtor will work in your best interest as a home buyer. (It also guarantees that the realtor will receive their commission!)
Both buyers and realtors put a lot of time and energy into the home buying or selling process — shouldn’t they all be guaranteed the best return on those investments?
The buyer representation agreement guarantees that all parties are treated fairly and get what they deserve.
Specifically, the buyer representation agreement defines the home buyer as a client of the real estate agent, rather than just a customer.
These two words seem interchangeable, but there are important differences:
A real estate agent owes a client – someone who has signed a buyer representation agreement — the best service possible, including full disclosure and confidentiality.
As part of the buyer representation agreement, your real estate agent MUST disclose any information that would affect the value of a property.
They are also forbidden from sharing pertinent information with anyone else, like how much you are willing to pay for a property.
However, to a realtor, the average customer (someone who isn’t prepared to sign a buyer’s representation agreement) is still just “browsing around.” They may not be serious about buying into the Ontario, Canada real estate market.
Such an individual could waste the realtor’s time and effort. What if they show this “customer” various properties, only to have that customer decide to use another realtor, or not use one at all?
On the other hand, a client who has shown their commitment to the process by signing an exclusive buyer representation agreement is worth that realtor’s time and effort.
Of course, a realtor and client can mutually agree to terminate a contract, or for the contract’s term to simply end before any suitable properties are found.
However, the buyer representation agreement still gives the realtor much more confidence that their new client is committed to their home buying search. This in turn ensures that the realtor will give you his or her best possible service.
As a document that inspires confidence both for the realtor in the client and for the client in the realtor, you can see that the buyer representation agreement really isn’t something to be intimidated by.
If you’re buying a home or considering doing so in the near future, keep this information about buyer representative agreements in mind.
And if you are looking for a certified agent in the Ontario, Canada real estate market, visit our SearsRealEstate.ca website to learn how using one of our agents can get you thousands of dollars in FREE Sears Gift Cards!
