What You Absolutely Need To Know When Buying Real Estate Print

WHAT YOU ABSOLUTELY NEED TO KNOW WHEN BUYING REAL ESTATE



Buying property is no small matter. Aside from being the largest financial transaction you may ever undertake, it’s probably also the most complex. If you are serious about buyer, there are many good reasons to work with a qualified Real Estate Professional as your representative.


When a property is listed for sale on MLS, it creates an Agreement that means that all Realtors are working for the Seller, unless a Buyer Representation Agreement exists.  This means that all Realtors are working for the Seller, until you ask a Realtor to work for you. In order to ensure you receive the type of service you expect and deserve, you need to have someone dedicated to YOU.



WE FOCUS ON BUYER REPRESENTATION



When engaging our services, as Realtors, to work for you, you will be asked to sign a Buyer Representation Agreement. With this Agreement, We commit to you and to representing your best interests throughout the process. At the same time, you are committing to working with us.
Having one person working for you and looking after your needs is always preferred over using multiple Agents. It not only allows us to build a relationship, but allows us to better understand you and exactly what your needs are. This can save time and aggravation for everyone involved. Working with multiple Agents creates unnecessary duplication of effort which will likely diminish the type of service you will receive. As Buyers Representatives we will do our utmost to protect you in the transaction and will advise you of every possible option available; to get you the best possible deal.

Without a Buyer Representation Agreement, you are seen as “playing the field” and there’s a good chance you won’t receive the highest level and quality of service you deserve and expect. You see, in spite of the highly competitive environment in Real Estate, Realtors talk to each other and if you are out there, chatting with multiple Agents, you are already damaging your level of confidentiality.  Most Agents won’t commit their full time and services to you if you won’t commit to them- and they are not required to keep things confidential unless you have signed an Agreement with them.

In your Buyer Representation Agreement, there are certain elements that must be determined by you and your Realtor. Included for clarification of understanding and the benefit and protection of both parties, these include:

Time Period – This is the length of time for which the Agreement will be in effect. Although there are no standards for time period, generally when buying a cottage three months is the minimum time frame you should consider with six months or longer being more typical.

Property Type – This refers to the type of property you’re hoping to buy. Generally this will be home, cottage or vacant land. In any case the description is usually fairly general with the term “Residential” commonly being used.

Geographic Location –
This specifies that the Agreement is valid in a specific area or for a specific property. A good Realtor will never deal outside their area of expertise.

Commission – This is possibly the most confusing part of the Agreement. As a Buyer, you typically do not have to pay any commission as it generally comes out of the Seller’s proceeds of the sale- however, there are instances where you may have to pay commission to your Agent and we can discuss how paying your agent directly may be beneficial to you. 

Holdover Period – This is a specific period of time, usually at least 90 days, that means that if, once the Agreement has expired, you enter in to an agreement to purchase a property within that holdover period (either privately or through another Realtor or salesperson) and that property was introduced to you by the Realtor you originally had the Representation Agreement with, you may be liable to pay them the full amount of commission.

You should also know:

When you enter in to a Buyer Representation Agreement, the Realtor is governed by a strict Code of Ethics and legal contractual obligations to ensure all parties are treated fairly and with the highest possible level of service. This is also deemed to be a “Fiduciary Relationship” and accordingly, there are fiduciary duties that a Realtor owes to you, his or her client. These duties are:

Accountability – Your Realtor must maintain accurate record keeping and they must be prepared to provide details of all funds held in trust and all monies handled on your behalf.

Confidentiality – Your Realtor must not use any information they get from you in a way that may harm or negatively affect you with regard to the transaction.

Competence – Your Realtor must maintain a sufficient level of knowledge and skill in order to carry out the required duties as well as exercise a degree of care and professionalism that could be expected from the average person in that field.

Good Faith/Full Disclosure – Your Realtor is required to disclose any direct or indirect personal interest they may have regarding a transaction and must not let any personal interest conflict with the performance of their duties. Your Realtor must also disclose any known relevant and material information that may affect the value or desirability of a property.

Loyalty – Your Realtor must, at all times, place your interests above all else except the law and is obligated to act solely in your best interests.

Obedience – Your Realtor must follow your lawful instructions regarding a transaction whether the Agent agrees with them or not


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When you sign a Buyer Representation Agreement, it is a legally binding contract between the two parties and both are bound by it until its completion or expiration. We always allow you to cancel the agreement, at anytime, if you are not satisfied with our service. A good Agent is not afraid to offer you that guarantee.



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