What is involved in our Buyer Representation Service?
If a Realtor you contact to see a property, does not discuss Buyer Representation with you, I would ask... Why?
What is Buyer Representation? We will go into this further.
Does this Protect me the buyer? YES, Absolutely.
Does this protect me the Real Estate Sales Representative/ Broker? YES, Absolutely.
Buying a cottage, home or investment property can be one of the largest investments we all make in our lifetimes. Don't you want to be represented?
Click here to view a copy of the Buyer Representation Agreement. DISCLAIMER: 2020 Forms, Subject to Change.
Did you know all realtors work on behalf of the seller of a home and not the buyer? Unless You are working with a realtor under Buyer Representation.
By law, all realtors—even the one showing the home, listening to your housing 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 their motivation.
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 to you (including 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). With customer status you are virtually "unrepresented" and in a "buyer beware" situation.
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 fiduciary duties (see them listed below).
A clincher 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 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!
We have chosen to run our business in a certain way. We provide the very best service, including all our fiduciary duties, so we do require Buyer representation with our buyers.
QUESTION? We have spoke to many agents in your area about looking at property, and they have never mentioned Buyer Representative?
ANSWER: Why would you want to look at properties and not be represented by your Realtor!
If you have any questions, please call us and we would be happy to discuss further with you.
Clause In Buyer Agreement
2. COMMISSION: The following section establishes the commission structure for the process. It states that the Buyer understands that the real estate company (Salesperson) will be paid a fee by the company that has the property listed. If the Buyer indicates in the commission portion to pay the real estate company a specific amount and the portion offered by the company listing the property is less than what the Buyer has agreed to pay, then the Buyer is responsible for the difference. The Buyer is to be informed of the commission amount being paid by the company with whom the property is listed.
During the search process, the Buyer's representative:
Searches for properties and provides information to the buyer "Sign Up for Emails for New Listings"
Arranges property showings that meet the buyer’s needs
Provides information that the buyer requests about the home or property, community, taxes, utilities and zoning, or refers the buyer to appropriate information sources
Discloses any material facts about the property of which the Industry Member has knowledge.
During the offering process, the Buyer's representative:
Prepares a competitive market analysis of the property for the buyer
Counsels the buyer on what price to offer to the seller
Shows what other buyers have paid for properties in the area
Assists in writing an offer with the buyer’s interest in mind
Negotiates the best price and terms for the buyer
Keeps the price capabilities and objectives of the buyer confidential.
During the closing process, the Buyer's agent:
Monitors all dates, events, and requirements (fulfillment of conditions) for the buyer
Attends the pre-closing viewing with the buyer.
You are entitled to the following services and duties:
Loyalty—the buyer’s representative must put your interests above their own
Obedience—the buyer’s representative must follow your lawful instructions
Reasonable skill and care—your buyer’s representative must negotiate the best deal for you
Disclosure—the buyer’s representative must disclose all information to you
Confidentiality—conversations and information between you and your buyer’s agent must be kept confidential, even after the transaction has been completed.
What a Royal LePage Exchange agent does for you
There are many good reasons to work with a qualified real estate professional. In a formalized agency relationship, you can expect your Royal LePage Exchange's buyer's representative to:
Provide you with the highest standard of care and extreme loyalty to you as the client.
Understand your specific needs and wants, and locate appropriate properties.
Assist you in determining how much you can afford.
Help you get pre-approved for your mortgage.
Preview and/or accompany you in viewing properties.