Buyer Representation Agreements: Schedule “A”

An issue that has arisen recently is the matter of referencing certain matters in a Listing Agreement. RECO said that you should have a Schedule “A”. OREA prepared a Schedule “A” but said that you only need it, if you are offering something extra, or taking something away.

In any event, in order to avoid problems going forward, why not simply include a Schedule “A”?

This is a quote from the RECO Information Guide:

“If you are a buyer, an agent can:

• Assist you with getting pre-approvals for financing so you know how much you can afford

• Make you aware of any tax exemptions you might be eligible for

• Gather and share information about neighbourhoods and homes that meet your requirements, and arrange to show you homes you’d like to see

• Make inquiries about zoning, permitted property use, or other aspects of the home

• Advise you on the best approach in competing offer situations and how to protect your offer information

• Negotiate with sellers to achieve the best results, price, and terms, for you

• Guide you through paperwork and closing the transaction successfully

• Provide referrals to other professionals you’ll need (for example, home inspectors, lawyers, or contractors)”

All of the above points are good. In some cases, they might not all apply. Let’s draft something up, generally, and leave out the casual language. Also, you won’t be including any cartoons.

Proposed Schedule “A” for Standard Buyer Representation Agreements

First, it should start off with either:

1. The Brokerage shall, or
2. The Designated Representative shall.

So, let’s look at the most common situation going forward which would read as follows:

Schedule “A”

The Designated Representative shall observe and comply with the fiduciary duties owed at common law, including disclosure, obedience, competence, confidentiality, accounting and loyalty, shall comply with the Code of Ethics under the Trust in Real Estate Services Act, 2002, including the observance of courteous, honest, and good faith conduct executed with integrity and shall endeavour to provide you with some or all of the following:

• Advise you on market conditions
• Keep you up to date with respect to changing market conditions
• Assist you with getting pre-approvals for financing, if required
• Advise you of any tax incentives and/or exemptions that may be applicable
• Advise you about neighbourhoods and properties that meet your requirements
• Arrange to show you suitable properties
• Determine zoning, permitted property use, and other aspects of the property
• Draft appropriate offers for your consideration, on suitable properties
• Advise you on the best approach in competing offer situations
• Advise you how to protect your offer information
• Negotiate with sellers to achieve the best results, price, and terms, for you
• Provide recommendations and referrals to other professionals, as required
• Arrange and if advisable, attend home inspections and appraisals
• Arrange viewings and further inspections, as required
• Advise you on various other aspects of the transaction
• Assist you with the successful closing of the transaction.

COMMENT

The above Schedule is simply a suggestion for your consideration when it comes to representation, services and assistance. You might add or subtract various points in any given situation.

Also, be aware of the fact that matters related to “Termination” should also be part of your Schedule “A”.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com