Buyer’s Rep should Sign Commission Agreement and CCR with Builder


I am a Buyer’s representative and I have a buyer purchasing a new build condo. The builder is cooperating. What form do I use to ensure I get paid?


You could use a “Commission Agreement for a Property Not Listed”. In most cases, the builder will have its own forms.

The Real Estate Council of Ontario (RECO) will still expect you to have a Confirmation of Cooperation Representation even with a builder. Actually, it is even more important since your relationship could easily fall into several categories.

If you have a Buyer Representation Agreement (BRA), then the buyer can say you were their agent in the deal. Basically, if this is no longer the case, then the Confirmation of Cooperation and Representation (CCR) would come to your rescue.

You could also spell that out in another document. Also, the builder may not sign, leaving you to decide what type of document you might choose instead of the CCR to say that you are no longer the agent for the Buyer, or you are acting with restrictions and/or limitations, but you are still being paid.

The key issues are:

  1. Compensation, and
  2. Representation.

Compensation is easy, any kind of a commission agreement with the builder will do the trick.

The more difficult issue is your relationship with the Buyer. This may have changed. You offered “agency” and the Buyer selected agency in the “Working with a Realtor” (WWR) Form. This was selected by the Client and reduced to writing in the BRA. Now, of course, things have changed. The Buyer is dealing direct with the builder. You are no longer there, representing them, in any way. But, you are still being paid.

So, specify whatever limitations and/or restrictions now apply!

Does your Client properly understand the new deal? They might now be a Customer!

Brian Madigan LL.B., Broker

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