Who Does It Benefit and Why Should I Sign One?
In Ontario all real estate agents are governed by the Real Estate and Business Brokers Act 2002, which became law in March, 2006. This law stipulates that as soon as possible after the first point of contact with a Buyer, a determination must be established as to whether the Buyer will be represented by the Agent as a “customer” or a “client” and there is a distinct difference between the two. That is why this determination must be made as quickly as possible as the Agent must be governed by the law as to how the Buyer is represented.
Many Buyers are reluctant to sign an agreement with their agent… and I believe the reason for that is … it is not being fully and clearly explained to them. Here is a simplified explanation of how it benefits the Buyer.
- Before the Inception of the Buyer Representation Agreement, the buying agent owed his/her Fiduciary responsibility to the Seller, even though they were representing the Buyer.
- The Buyer Representation Agreement releases your agent from working on behalf of the Seller, and owes all their Fiduciary responsibility to you, as a client
- As my client, I can provide information I otherwise would not be able to provide, with the exception of anything of a confidential nature
- As my client, I can now offer advice, wheras before I could not.
- YOU are in control of how long you wish to have this Agreement in place.
- The Agreement can be a concise as ONE PROPERTY, or it can be for ONE DAY, or ONE WEEK, ONE MONTH ETC.,
- Without a Buyer Representation Agreement I simply provide the paperwork for you to submit an offer, without benefit of offering strategies or advice on how to proceed.
After viewing this video you will know whether you want to be a “client” or a “customer.”