Buyer Agent
The Ontario Real Estate Association has developed a standard buyer agency agreement that brokers can use with clients. Any Licensed real estate sales person / broker in Canada can legally act as a buyer's agent/broker. A buyer's agent/broker performs services for buyers that a seller's agent/broker can't, such as showing reasons to buyer to walkaway and not to place offer on a particular property.
A good buyer broker/salesperson will always include conditions in the contract that protect the interest of buyer, rather than the seller as in most standard contracts,and keep confidential any information that could hurt your bargaining position. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting. The buyer and the brokerage will enter into a signed buyer agency agreement that details their relationship.
Bear in mind that the seller agent (e.g. the agent whose name is on the lawn sign) always works for the best interest of his/her seller. Brokers have to disclose all relevant information they have on property defects to sellers. But brokers 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 agent comes in handy, being free to talk about anything that can affect the buyer's interests.
When you have decided to buy, the services of a qualified real estate professional, who will act as your buyer agent/broker, is of utmost importance. The ideal buyer's agent/broker 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 of sale and purchase to protect you interest, offer information about the amenities of specific neighbourhood and have the support of a reputed real estate company.
The seller usually pays all commission to the listing brokerage who, in turn, forwards the appropriate portion to the buyer’s brokerage. Alternatively, 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. |