Collecting on the Buyer Representation Agreements

Question:

I showed at least 20 properties and made 3 offers on properties with a Client under a BRA.

They purchased a property through another agent (listing agent) the week I was out of town.

When I touched base with client upon returning from 1 week away they said their situation has changed and are no longer looking for homes. What are my rights?

Answer:

You have two choices:

  1. Arbitration with the other Agent,
  2. Small Claims Court with the Buyer.

Look at the BRA, do you have:

  • the right person on the BRA (who holds title on the new property)?
  • the correct geographical area?
  • the right property description?

Did you explain the BRA properly? How long did it take for you to explain the document? Did you leave it with them to read etc. prior to signature?

You do appreciate that they will say that you never, ever explained it and they never appreciated that they had signed one.

All of these factors will determine whether you have a successful case. The key issue is “informed consent”.

Agents lose in Court all the time on BRA’s and they also win all the time with BRA’s. The difference is in the presentation of the case and the thoroughness of the explanation in the first place.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

Leave a Reply

Your email address will not be published.