What about a Prior BRA?

Question:

I am working with Clients and the husband just mentioned that a Realtor gave him a paper not that long time ago and that the husband signed it, not even knowing what it was. My guess is that it was a Buyer Representation Agreement.

They did not go to any showings with this agent, and had not received a copy of the paper signed. Concerns?

Answer:

I would first check the Buyer’s Registry to see if the BRA was registered. If not, then you have limited risk.

But, that doesn’t apply to the Buyer. The husband might owe 2 commissions! The first commission depends upon the enforceability of the original document (BRA).

If he didn’t get a copy, it likely cannot be enforced, if they never saw any properties, again this would make it less likely that it could be enforced.

A cautious step, would be to have the wife only sign your BRA and get a new “husband and wife BRA” once the first one expires. Naturally, that’s problematic because the husband doesn’t know what he signed. What does he think he signed? When does he think it ends? Probably, he has no idea!

It might be wise for the husband to contact the other agent and get a copy of whatever it was that he signed.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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