What is "Buyer Agency"
The Ontario Real Estate Association has developed a standard buyer agency agreement that agents can use with clients. Any registered (licensed) real estate salesperson or broker in Ontario can legally act as a buyer's agent/broker. A buyer's agent/broker performs services for you that a seller's agent can't, such as showing you reasons not to buy a particular property.
A good buyer salesperson or broker will include contingencies in the contract that protect you, rather than the seller as in most standard contracts, and keep confidential any information that could hurt your bargaining position. The features of this relationship are good faith, full disclosure, competence, obedience, and accounting. The buyer and the brokerage will enter into a signed Buyer Representation Agreement which details their relationship.
Keep in mind that the seller agent (e.g. the agent whose name is on the lawn sign) always works for the best interest of their seller. Agents must tell buyers about material defects that render the property dangerous or unfit for habitation, but not necessarily all defects in a property. That's where a buyer agent comes in, 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 will have a good working knowledge of the local real estate market conditions, provide you with insight into market trends, current market values of similar properties, add conditions and clauses in Agreement of Purchase and Sale to protect your interests and offer
information specific to neighbourhoods.
The seller usually pays a commission to the listing brokerage who then pays 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 company from the proceeds of the sale.
Questions ? Call me at 905-885-7627 or e-mail lindsay.martin@sympatico.ca