"A HEAD for Business, a HEART for People"

 

 This Form is a contract between a Buyer and a real estate company that gives the real estate company permission to act on the Buyer's behalf in the purchase of a property. Assuming the Buyer is a Client of the real estate company, the Real Estate Council of Ontario (Ontario's governing body) REBBA Code of Ethics requires that Salespeople have a written Buyer Representation Agreement presented for signature prior to an offer being presented on behalf of the Buyer.

 

 

 

 

 

 The first section identifies the parties involved in the Agreement, and the the Buyer is only using one REALTOR® to represent them in their purchase, hence the wording "Exclusive Buyer Representation Agreement".

 

 

 Then a time-frame for the Agreement is established. REBBA Code of Ethics requires the Buyer's initials on this Form if the Agreement is to extend beyond six-months.

 

 

 

 

 Here the property type is specified (Residential, Commercial etc.) as well as the area agreed upon by both the Buyer and the Real Estate company for which the Agreement is valid. It is almost always the area in which the Buyer wishes to purchase a property.

 

 

Here, the Buyer affirms that he has not signed a similar contract with any other real estate company.

 

Furthermore, this section defines who will be referred to as the Buyer and Seller  for the remainder of the document.  

 

 

 

 Generally, in a real estate purchase, the Buyer does not pay commission, rather it is paid to the Buyer's Representative via the Seller.

 

Working with a REALTOR® to purchase a home is therefore the best deal going. The Buyer gets all the service and expertise for NO COST!!

 

Nevertheless, the Buyer needs to be made aware of the commission structure, and the preceding section established the commission structure for the purchase process.

 

It states that, upon completion of a successful negotiation for a property purchase,  the Buyer understands that the real estate company (Salesperson) will be paid a fee by the company that has the property listed.

 

If the Buyer indicates in the commission portion of this document to pay the real estate company a specific amount, and the portion being paid by the company listing the property is LESS than what the Buyer has agreed to pay, then the Buyer is responsible for the difference. The Buyer is to be informed of the commission amount being paid by the company with whom the property is listed.

 

 

  

 see above. This is part of the previous explanation, but appears on the following page of the Agreement.

 

 

 

 

 

 This section confirms that the Salesperson has explained the different types of relationships that can occur during a real estate transaction.

 

 

Your REALTOR® does a lot of "behind the scenes" work in trying to find you your next home, and deserves compensation for their efforts.

 

This section requires the Buyer to commit to work with the Real Estate Company for the length of the contract and states that they must inform their Salesperson if they become aware of a property of interest to them. If they do not inform the Salesperson of a property of interest that they subsequently purchase on their own, the set commission will still be owed to the Salesperson.

 

 

 This asserts that the Salesperson cannot and is not to be held liable for the condition of the property. It is the responsibility of the Buyer to educate themselves on the condition of the property.

 

 

 This provides consent for the Salesperson to accept any finders fee that a mortgage company may offer to them. It also states that this fee would be collected by the Salesperson in addition to the stated commission. It should be noted that a specific consent will be required at the time a finder's fee arises.

 

 

 This states that the Buyer understands that credit checks and personal information about them may be used in the process of them purchasing a property.

 

 

 This section gives the Salesperson the right under the Privacy Act to use your personal information provided to them by you, the Buyer, in order to assist in making the transaction happen!!

 

It also assures the Buyer that this information will not be distributed to third parties (i.e pool or moving companies to solicit your business).

 

  

 

 If there are other Schedules (additional information) added to the Agreement by the parties involved that contain something that contradicts what is in the pre-set text of this Form, the added information supersedes what is on the Form.

 

 

 

 This Agreement, if necessary, may be sent via electronic means and still be binding on all parties.

 

 At the bottom of each page that does not contain a signature, the initials of the parties involved are required to indicate that they understand and agree to the conditions contained on that page.

 

 

 This states that the company representing the Buyer will assist the Buyer in locating a property with a general description as indicated above and endeavour to obtain the acceptance of an offer for the Buyer.

 

The Salesperson acting on behalf of the company representing the Buyer must then sign.

Here the Buyer must sign to indicate that they have read, understand and agree to the information provided above.

 

This establishes an "Employment Contract" between you, the Buyer, and the real estate company you have selected to find your next home. 

 

 

 

 

 This last section is signed by your REALTOR® stating that they carry insurance as required by the Real Estate and Business Brokers Act (REBBA).