Engagement

Buyer Agency—covers both Tenant’s and Buyers.

Buyer Agent: The Ontario Real Estate Association has developed a standard buyer agency agreement that brokers can use with clients. Any licensed real estate salesperson in Canada can legally act as a buyer's salesperson/broker. A buyer's salesperson performs services that the listing agent or seller's salesperson can not for example not providing reasons not to buy or lease a particular property.

A professional and knowledgeable real estate salesperson or broker will provide contingencies clauses in the contract that protects the Buyer. Rather than the seller who will adhere to standard contracts. The Buyer Agent has a responsibility to keep information confidential that protects the Buyers bargaining position. The key factors in a relation with a Buyer are good faith, full disclosure, competence, obedience, and accountability. The buyer and the buyer brokerage will enter into a signed buyer agency agreement that details their relationship.

Keep in mind that the seller's salesperson or broker always works for the best interest of the seller.  Brokerages must 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 becomes an essential factor. The Buyer Agent is 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 to purchase or agreement to lease  protecting the  buyer’s interest, offer information about zoning, truck swing, accessibility to major highways will be taken into account the agreement to purchase or lease. The buyer agent will always recommend that the Buyer review all documents presented to review by independent legal and tax advisors.

The seller or landlord usually pays all commission to the listing brokerage who, in turn, forwards the appropriate portion to the buyer’s brokerage. There may be situations where 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 or lease.

The Buyer Agreement is key component and is a requirement by Ontario and Canadian Real Estate Regulatory Bodies. At one point time a registrant will require the Buyer Engagement or Buyer Representation executed for the Brokerage files and providing the ability of the Registrant to properly represent the Buyer in all factors of a Real Estate Transaction.