What is a Buyer Rep Agreement?

The Now EMC, your community Newspaper

Diane Hatfield, Ottawa Real Estate Board President

A buyer Representation agreement is a contract between you and your REALTOR®'s real estate company that gives them permission to act on your behalf during the purchase of a property.  It sets out the relationship between you, the Buyer, and the REALTOR®'s who will help you find your new home and represent you throughout the buying process.

The Agreement identifies the parties to the Agreement:  you and any partners you may have who will be buying the property jointly with you; and the real estate brokerage by which your REALTOR®'s is employed.  It also sets out the time period is negotiated between you and your REALTOR®'s. 

Next, the Agreement identifies the type of property you wish to purchase, and the geographic location where you would like your REALTOR® to search on your behalf.  You as the Buyer declare that you have not entered into a Buyer Representation Agreement with any other real estate brokerage to purchase a similar property in the same geographic area.

This Agreement also establishes the fee structure (if any) for your home buying process.  Typically, if the property is on the Multiple Listing Service®

(MLS®), the brokerage representing the buyer is compensated through the listing brokerage. Your REALTOR® will explain all of at he options that exist and help you decide what works best for you. 

Also contained within the Buyer Representation Agreement is a requirement for your REALTOR® to explain the different types of relationships that may occur during the course of a real estate transaction, such as multiple representation (when you wish to purchase a property that is listed by the real estate company you are working with) and to obtain your consent if such a situation arises.

Your REALTOR® will, under the terms of the Agreement, find properties that meet your geographic and other criteria, and will take care of setting up appointments to view those properties, negotiating, and presenting offers on your behalf when applicable.  If you find a property that interests you on your own, you are required by the terms of the Agreement to inform your REALTOR® about that property, so that they may work with you on your behalf to help you view it and, if you choose, make an offer.

The Buyer Representation Agreement exists to protect your rights and those of your REALTOR®.  It ensures that you understand and are informed about your REALTOR®'s obligations to work on your behalf, as well as determining for how long and by what means you will work with your REALTOR® to find a new home. 

http://orebweb2.oreb.ca/form300.pdf