(BCSR vs. BRA)
Question:
Curious about this scenario:
You’re the listing agent and a random lead wants to see the property.
So you sign them up with a Buyer Customer Service Agreement (BCSA), presumably to double-end.
Later on, there is a NEW Buyer Representation Agreement (BRA) with a new agent and the offer. (BRA was signed afterwards)
Does the BRA nullify the BCSA (assuming the Working with a Realtor (WWR) document was explained correctly)?
So, what happens to the co-op commission, if any?
Answer:
The BCSA is non-exclusive. It is important to be aware of the first sentence in the document highlighted in bold right after the heading:
“This is a Non-Exclusive Buyer Customer Service Agreement.”
The expectation is that the BRA which includes fiduciary duties would be preferable. It would be beneficial for the consumer.
Consequently, the BCSA as drafted by OREA is non-exclusive and would be “trumped” by a BRA subsequently signed.
This doesn’t need to be the case. The BCSA could have included a provision by way of an option in favour of the agent to provide “agency” representation to the consumer given certain conditions.
Clearly the cooperating Brokerage would hold the BRA and be entitled to the full commission payable to the Buyer’s side.
Brian Madigan LL.B., Broker