Under the TRESA legislation, services to be provided are to be spelled out. That seems fine, According to OREA, for Buyers, it’s all in the Buyer Representation Agreement (BRA). According to RECO, that’s not quite good enough! OREA says, if you want more than put it in Schedule “A”.
So, let’s have a look at the BRA, and figure out, what’s in there already.
Buyer Representation Agreement (BRA)
Designated representation agreement
Designated Representative provides: representation and services
Brokerage just provides services
Buyer gives the Brokerage the exclusive and irrevocable authority to act as the Buyer’s agent
purpose of locating a real property (type, use, geographical location)
Buyer’s Agent’s Duties and Obligations
Will advise Buyer of the amount offered for commission by Listing agent
The Brokerage agrees to represent the Buyer in an endeavor to obtain the acceptance of an Agreement on terms satisfactory to the Buyer
Declaration of insurance as required by TRESA
Buyer’s Duties and Obligations
Buyer warrants no other BRA for this same property
Acknowledges that commission from Listing agent or Seller will not make Buyer’s agent either agent or sub-agent of Seller
If Buyer enters agreement during currency of BRA, Buyer will pay a commission as stated
If there is a deficiency, Buyer will pay the deficiency
If there is no payment at all, Buyer will pay full amount
Buyer agrees to pay commission during holdover period
Any property, introduced during the currency from any source
Provided reduction for amount paid to another Brokerage (if BRA)
Commission is payable even if transaction not completed
Provided non-completion is Buyer’s default or neglect
Commission payable on date set for completion
Commission plus applicable taxes
Agreement applies in respect to purchase of one property
If Buyer leases, the BRA continues to apply with respect to purchase
Brokerage has provided information with respect to agency relationships, including
Seller Representation,
Sub-Agency,
Buyer Representation,
Multiple Representation and
Self-Represented Party assistance.
Brokerage: shall assist the Buyer in locating a real property
represent the Buyer in an endeavour to procure the acceptance of an agreement
The Buyer acknowledges that the Buyer may not be shown or offered all properties that may be of interest
The Buyer hereby agrees that the terms of any buyer’s offer or agreement to purchase will not be disclosed to any other buyer.
The Buyer acknowledges that the Brokerage may be entering BRA’s with other buyers for similar properties
Buyer appoints Brokerage for the purpose of giving and receiving notices
Secure Buyer’s consent for multiple representation
Perform impartially while under multiple representation
- Equally protect the interests of both
- Exercise full disclosure to both
- Not disclose price Seller will accept
- Not disclose the price the Buyer will offer
- Not disclose motivation or personal information about either
- Not disclose the price Buyer should offer or Seller should accept
- Not disclose particulars of any competing offer to Buyer unless Seller directs
- factual market information about comparable properties shall be disclosed to both
- factual information about potential uses of the property shall be disclosed to both
- not deliver or receive notices on behalf of either party
- comply with TRESA in respect to Self-represented parties
- comply with TRESA in respect to Designated Representative parties
Buyer agrees to act in good faith and work exclusively with Brokerage
Buyer agrees to advise Brokerage immediately of any property of interest during currency of BRA
Buyer shall submit Offers through the Brokerage
If the Buyer arranges Agreement during the currency or during holdover period (that came to Buyer’s attention during currency), then Buyer shall pay commission within 5 days of written demand
Buyer agrees that the Brokerage and representatives of the Brokerage will not be liable for any defects, whether latent or patent, to the land or improvements
All information supplied by the seller or the listing brokerage may not have been verified and is not warranted by the Brokerage as being accurate and will be relied on by the Buyer at the Buyer’s own risk.
The Buyer acknowledges having been advised to make their own enquiries to confirm the condition of the property.
The Buyer acknowledges and consents that the Brokerage may be receiving a finder’s fee, reward and/or referral incentive, in addition to the commission
The Buyer is hereby notified that a consumer report containing credit and/or personal information may be referred to in connection with this transaction.
The Buyer consents to the collection, use and disclosure of personal information by the Brokerage for such purposes that relate to the real estate services provided by the Brokerage to the Buyer including,
locating, assessing and qualifying properties for the Buyer;
advertising on behalf of the Buyer;
providing information as needed to third parties retained by the Buyer to assist in a transaction (e.g., financial institutions, building inspectors, etc.);
and such other use of the Buyer’s information as is consistent with the services provided by the Brokerage in connection with the purchase or prospective purchase of the property.
The Buyer agrees that the sale and related information regarding any property purchased by the Buyer through the Brokerage may be retained and disclosed by the Brokerage and/or real estate board(s) (if the property is an MLS® Listing)
for reporting, appraisal and statistical purposes and for such other use of the information as the Brokerage and/or board deems appropriate in connection with the listing, marketing and selling of real estate, including conducting comparative market analyses.
The Buyer acknowledges that the information, personal or otherwise (“information”), provided to the real estate board or association may be stored on databases located outside of Canada, in which case the information would be subject to the laws of the jurisdiction in which the information is located.
Electronic communication and electronic signatures are authorized.
COMMENT
You will notice that most of the issues and matters raised in the BRA actually deal with the Buyer agreeing to pay commissions and accepting various restrictions and limitations.
Having said that, what more can really be said about the role of a Buyer’s agent. They will obviously try to do their best to find a suitable property otherwise they will not be paid.
Brian Madigan LL.B., Broker