Why Sign a Buyer Representation Agreement?
You’re likely familiar with the idea of signing a Listing Agreement when you sell a home with a real estate agent and their brokerage, but what about a Buyer Representation Agreement?
Essentially, a Buyer Representation Agreement is a document designed to protect Buyers by ensuring, in ink, that their best interests must be looked after by their agent. It almost creates a ‘bubble of protection’ for a consumer by establishing a formal relationship with a specific REALTOR® who will represent their client during their property search and when negotiating their home’s purchase. That’s why it’s really important that you use a REALTOR® you trust and feel confident will do the best possible job for you.
The Real Estate Council of Ontario (RECO), which is a public agency that was created to protect consumers and regulate the industry, introduced guiding principles in what’s referred to as the “Real Estate and Business Brokers Act” in 2002 that require REALTORS® to ask their clients to sign a written representation agreement at ‘the earliest possible opportunity’.
To expand, the Buyer Representation Agreement (the BRA) is entered into between a REALTOR® (more specifically the brokerage) and a potential purchaser to establish in writing that the REALTOR® is working exclusively for you for a certain amount of time. It creates protection for Buyers by formalizing the ‘fiduciary duties’ your agent is now bound to uphold including loyalty, obedience, full disclosure, care and diligence, and duty to use skill. It protects your information and also allows your REALTOR® to share his/her expert opinions, giving you full advantage of their knowledge and expertise.
Once a BRA is signed it also enables your REALTOR® to enter your search criteria into a Buyer Registry System that notifies other agents with upcoming listings that you could be a match. Essentially, it gives your future home a helping hand in finding you.
Signing our Buyer Representation Agreement means that you are choosing to work with us. It establishes a mutual commitment to achieving your real estate goals and, in complete transparency, ensures good faith for everyone. We consider it a great honour to be chosen to represent our clients, and are so confident in our services that we offer a service guarantee: if a client ever feels like we aren’t living up to our commitment, they can cancel their Agreement with us.
If you have any questions about the BRA or would like to discuss how we might be able to help you achieve your real estate goals, feel free to contact us.