What is a Buyer Agency Agreement? - sherilleonhomes

If you haven’t bought or sold real estate in a while, you’ll find a few changes to the process. When you start working with a real estate agent, you’ll be asked to sign an agency agreement. A lot of people aren’t sure what this means. I will simplify the process.

The term “agency” refers to the people who the real estate professional represents in a transaction. Many people don’t realize that historically all real estate agents have legally worked on the seller’s behalf. Yes, even when your agent showed you homes and negotiated the final price for you, his/her legal duties were to the seller, not the buyer. This has changed.

Starting on January 1, 2000, all licensed real estate brokers and salespeople must have a written agency contract to establish who they are working for - the buyer or the seller. Buyers will be asked to sign a buyer agency agreement and sellers will be asked to sign a listing agreement.

People often balk at signing documents with which they are not familiar, and rightly so. You need to know that these agency agreements protect you as the buyer. By signing an agreement, you know that your real estate agent is working in your best interests. If, as the buyer, you refuse to sign an agreement, the agent’s fiduciary duties are to the seller. The agent is then obliged to disclose to the seller any information that would assist him or her in the sale, including, perhaps, how much you - the buyer - are willing to pay.

As a buyer should you choose to have Keller Williams Portfolio Realty represent you and not the seller. Basically this means we agree to represent you and you alone in buying your new home. As buyer agents we still get paid through a share of the selling commission so, there is no need to worry about extra costs. It is included as part of the Purchase Price.

Under the rules of the real estate industry’s governing body, the Real Estate Council of Ontario (RECO), real estate professionals must have agency agreements with clients.

When a buyer sits down with me for the first time to discuss their criteria and market conditions, I always include in my buyers’ package a Buyer Agency Agreement and Working with a Realtor form. I explain each form so there are no surprises and there is full transparency between the client and myself.  My goal is to alwayscwork as a team with my clients.

I am always happy to send out my buyers’ package ahead of time. Email or call me on 416 419 4893.