When selling a home, most people are aware they sign a Listing Agreement with a REALTOR. There is, however, an agreement that REALTORS are now asking their home-buying clients to sign. It's an agreement that works in favour of the buyers, guaranteeing the very best in real estate service.
The Real Estate Council of Ontario (RECO), a public agency formed to protect consumers and regulate the industry, introduced guiding principles mandating that REALTORS ask their clients to sign a Written Representation Agreement at the earliest possible time.
The Buyer Representation Agreement signifies that for a designated period of time, the buyer has engaged a specific REALTOR firm to work exclusively on his or her behalf at finding a property. The agreement confirms the REALTOR's commitment to make his or her best efforts for the buyer.
- 1) If I Sign the Buyer Agency Agreement, how long am I under contract with the agent?
There is an "expiration date" on the agreement. Warning: Be sure you are comfortable with the time period because it's legally binding once you sign. You could be signing for six months or even ONE year. If you are not satisfied with your agent's services, the agreement cannot be cancelled. When signing, you can instruct the agent that you are giving him/her only one month. Extend the agreement if you are happy with the service.
- 2) Before I choose an agent to represent me, what are the questions do I ask?
You can ask the following questions:
- - Are you a full or part-time real estate agent?
- - How many years experience do you have?
- - What kind of information will I find in your website?
- - Are you available anytime to show me homes?
- - How are you compensated?
- - What is the best way to contact you? (i.e. cell, pager, via email, office 24hr available?)
- 3) Can a Buyer's Agent tell me if I'm paying the right price for a home?
Yes. The agent can do a research for pervious sales to determine the value in the neighbourhood. Based on the report, the agent can recommend the price you should pay.