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Know your rights when buying

There’s been a revolution in real estate in recent years. Unfortunately, many customers are still in the dark about it. Ellen Roseman writing in Moneyville talks about working exclusively with a real estate agent to buy property and buyer agency agreements agreements.

Here's an example of her answers to frequently asked questions about a buyer’s relationship with a realtor:

Q: I was shocked to hear I had to sign a three-month exclusive contract with a real estate agent in order to submit an offer or even to look at property. This was supposed to cover the time and expenses in finding the right home. Do I have to sign?

A: No, you don’t have to sign an exclusive contract with a real estate agent when buying a home. It’s your choice.

The law requires buyers to sign a document, called Working with a Realtor, at the earliest practical opportunity. It’s better to have a conversation about it when you start looking at homes together, rather than in the hectic time before you submit an offer.

Having an exclusive contract, known as a buyer representation agreement (BRA), is just one of the ways you can work with a realtor. If you prefer not to sign, look for someone who won’t insist on exclusivity.

You can negotiate the contract terms, such as signing for a shorter period than three months (even a month or 10 days). You can limit the contract to a specific property, street or neighbourhood, if the agent agrees.

See article by Ellen Roseman in moneyville.ca

April 21, 2011 in Buying Toronto Real Estate | Permalink

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Comments

You're absolutely right that the buyer is under no obligation to sign a Buyer Representation Agreement (BRA). However, many, if not most, brokerages require one when an offer is registered, which is why REALTORS will ask you to sign one at that time. It's also important to understand that a BRA ensures that you're going to get the kind of service you want and should expect from an agent and specifies that in writing. If you'd like more info on signing a BRA, check out our website under "Buying".

Posted by: WeSellForestHill.com | Jan 16, 2013 10:40:11 PM

Very helpful tips for individuals who are planning to buy new home.

Having an exclusive contract, known as a buyer representation agreement (BRA)

Posted by: Angel | Aug 31, 2012 2:39:45 AM

I just like the Singapore Property Agent...really awesome guys. Responsive & resourceful in helping us to find our dream home.

Posted by: Singapore Property Agent | Aug 23, 2011 11:56:33 PM

Many realtors will ask you to sign an agreement like that. If you trust your realtor there should be no problem in doing so.

Posted by: Carmen Brodeur | Jun 19, 2011 8:35:57 PM

Nice guide.. I'm Really enjoying all your post. And Yes your right we investors must have to know the rights, this business involved a lot of money and effort with this guide investors will become more knowledgeable before they go to a contract.

Markus
Queensland Properties Investments

Posted by: Investment Properties Queensland | Jun 14, 2011 11:14:18 PM

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