Oakville Real Estate News

What Is A Buyer Representation Agreement?


Blog by Joette Fielding | May 22nd, 2014


Buyer Representation AgreementYour real estate professional may ask you to sign a representation agreement, a document that defines the nature of the relationship between you and the brokerage, including the broker or salesperson. It should protect the interest of all parties.

Before you sign:

 Clarify your needs and expectations

 Ask what your broker or salesperson expects from you

 Discuss what services they will provide

 Clarify fees and costs

 Check that the timeframe of the agreement is appropriate for your needs

 Confirm that the geographic area covered by the agreement is appropriate based on the brokerage’s expertise

 Ensure you understand the agreement

 

Don’t sign it if you don’t understand it

Never sign an agreement unless you know what all the clauses mean and how long it will be in effect. Ask questions. And feel free to seek legal advice.

Keep a copy

Once you’ve signed an agreement, make sure you get your own copy. Keep your copy on file in case you need it later.

Multiple representation

Multiple representation means that a brokerage is representing more than one interested party. This could be the seller and the buyer of a property, or two buyers interested in the same property. Your broker or salesperson must disclose in writing when a multiple representation situation arises.

Before agreeing, ask questions and make sure you are comfortable with how it may affect the services provided to you.

Holdover clause

Buyer representation agreements typically include a “holdover clause”. Generally, it means that within “X” days after the agreement expires (the “holdover period”) if you buy a home that was introduced to you during the term of the agreement, you would be responsible for paying commission to your brokerage. The length of the holdover period is negotiable.

 

Content courtesy of http://www.reco.on.ca


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