Buyer Representation Agreement (B.R.A) is an agreement that defines the nature of the relationship between a buyer and the brokerage. When you are buying your home, a real estate broker or salesperson may/will ask you to sign a representation agreement. Just as sellers sign a listing agreement with their selling agent, buyers sign B.RA to protect their interests.
Real Estate Council of Ontario (RECO), which is a public agency formed to protect the interest of the consumers mandates the realtors to sign the agreement to safeguard the interests of the home buyers. B.R.A can be written, verbal or implied. To protect the interest of all the parties, your broker or salesperson is required, by law to have the agreement in writing and provide a copy of the same to you for your signature.
B.R.A clearly specifies what you can expect from your agent. Your agent does not want to leave room for any assumption or misunderstanding. B.R.A also clearly specifies what your obligations are towards the brokerage. Your broker or salesperson wants to provide you with the best service he or she can.
Tip from my side: Read B.R.A very carefully as there is lot of information in it. If you are not clear about any point, don’t hesitate to get clarification from your agent. Discuss all of the services that will be provided and make sure the written agreement is clear to you in all ways.
Don’t sign the B.R.A till you are clear about it. Remember, though your broker or salesperson is not a lawyer and can’t provide legal advice, they are familiar with these agreements and should be able to answer your questions and explain what different clauses mean and how they can affect you. If you still want more clarity over your questions, ask them to provide you with more information. Feel free to seek legal advice at any time.
If you choose not to sign an agreement, the brokerage is still responsible for outlining the services that will be provided to you by the brokerage.
The Code of Ethics clearly states that a broker or salesperson must protect and promote the client’s best interests. The Code also requires that a broker or salesperson deal fairly, honestly and with integrity and provide service to all clients and customers in a very fair and equitable manner.
There is no denying that signing a B.R.A has many benefits. Few of them are as follows
• Signed agreement means that it is a reassurance from the brokerage that best services will be provided and in a professional manner
• Full commitment from your brokerage that your realtor will work with you till you find your dream home.
Disclaimer – All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information