Living Room by Tom Merton
Plain Language Buyer Representation Agreement
Download the Form: Plain-Language-Buyer-Representation-Agreement.pdf
Forms are intended for general purposes and common situations only. Pre-set sections on Forms may not be readily understood due to their complexity.
Please note that the following does not constitute a comprehensive explanation of the definitions and ramifications of any part of any Form. This is a basic overview only and is not intended to take the place of the complete text and legal implications of any part of any Form.
It is absolutely essential to bear in mind that a Form does not apply to every situation, and great caution should be exercised due to this fact.
Professional advice is strongly recommended in order to guarantee full comprehension of all Forms. Relying solely on the outline provided here is not recommended.
Be advised that each Real Estate transaction is unique, and as such, the Toronto Real Estate Board is not responsible for, and cannot be held liable for, any agreements, misunderstandings, or misconceptions arising from the descriptions set out here.
The Buyer Representation Agreement is a contract in which the Buyer grants a real estate agency permission to purchase a property on the Buyer's behalf. If the Buyer is the real estate agency's Client, then the Salespeople involved are required (by the REBBA Code of Ethics) to provide a Buyer Representation Agreement to sign before they present an offer from the Buyer.
The top portion of the Form describes the length of time during which the contract is valid, and lists the parties involved. The Real Estate Council of Ontario (REBBA) Code of Ethics demands that the Buyer initial this Form if the Agreement lasts longer than six months.
Geographic Location: This part of the Form designates the geographic area in which the Buyer and the real estate agency agree that the Agreement is valid.
1. DEFINITIONS AND INTERPRETATIONS:
This part of the Form sets out which parties will be referred to as the Seller and the Buyer for the purposes of this agreement.
This part of the document sets out how commissions will be arranged. The Buyer acknowledges that the real estate agency representing him or her will receive a fee from the Listing Company. The Buyer must be informed of the amount of this commission and must match it.
This part of the document certifies that Buyer has been made aware of the various kinds of agency relationships possible in a transaction.
4. REFERRAL OF PROPERTIES:
This part of the document states that the Buyer must agree to co-operate with the real estate agency for the duration of their contract, and that the Buyer must make their Salesperson aware of any properties that interest them. If the Buyer buys a property without making his or her interest known to the Salesperson, then he or she is still responsible for paying the Salesperson's agreed-upon commission
The Buyer is responsible for knowing the condition of the property, and Salespeople cannot be considered legally responsible for that condition.
6. FINDER'S FEE:
Consent is given for the Salesperson to receive finder's fees offered by a mortgage company. The finder's fee is paid in addition to the commission, and specific consent must be given as to when the finder's fee is to be paid.
7. CONSUMER REPORTS:
The Buyer should be aware that some of his or her personal information, as well as the results of credit checks, may be used during the purchasing process.
8. USE AND DISTRIBUTION OF INFORMATION:
This part of the document grants Salespeople the authority to use personal information that the Buyer has given them for the purpose of assisting the transaction. Third parties such as moving companies will not receive this information.
9. CONFLICT OR DISCREPANCY:
Any extra information (schedules) attached to this contract that specifically contradicts a part of the text takes precedence over that text.
10. ELECTRONIC COMMUNICATION:
This contract is binding even when distributed electronically.
State here whether an extra document or specific Form has been attached to this Agreement.
This part of the document ensures that the Buyer will be assisted by his or her agency in his or her search for a property fitting the description set out here, and that the agency will work to secure a lease or purchase terms that the Buyer finds acceptable.
The Salesperson signs this statement, declaring that her or she carries insurance in accordance with the Real Estate and Business Brokers Act (REBBA).