The Buyer Representation Agreement

Most business arrangements are based from word of mouth agreements. Although it nice to have that trust with an individual or company, many negative issues may arise if there is no binding contract.

Signing a Buyer Representation Agreement binds the contract committing you to work with the brokerage when you’re in the market to buy a home. In the unlikely event you have a dispute, it is always better to have a signed contract if you need to take legal action. Being a client of the brokerage, rather than a customer, is another advantage of signing the contact. As a client, the brokerage and its employees must follow your lawful instructions, protect any confidential information and promote your best interests in the transaction.

If you prefer to work with a brokerage as a client and sign a Customer Service Agreement, the brokerage will help you complete the transaction but they are not required to owe you a fiduciary duty.

Be sure to read the documents provided to you by the brokerage of your choice. This is help you understand your relationship with the salesperson and the brokerage’s obligations.

Source: The truth about a Buyer Representation Agreement: Ask Joe https://www.thestar.com/life/homes/opinion/2019/03/09/the-truth-about-a-buyer-representation-agreement.html

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