Maybe you have heard about the Buyer Representation Agreement (BRA) and maybe you haven’t. The BRA is to buyers what a Listing Agreement is to sellers. It is a legal document outlining the relationship between the client and the realtor.
The Buyer Representation Agreement is: A contract between a Buyer and a real estate company that gives the realest company permission to act on the Buyer’s behalf in the purchase of a property. Assuming the Buyer is a Client of the real estate company, the Real Estate Council of Ontario (Ontario’s governing body) REBBA Code of Ethics requires that Salespeople have a written Buyer Representation Agreement presented for the signature prior to an offer being presented on behalf of the Buyer.
The BRA protects the Buyer’s interests in the home purchase and is signed before offering. As the agreement protects the buyer it is also the document that ensure the agent is paid for their work. Real estate agents are not paid for their work until their client purchases a home and it closes. The Buyer Representation Agreement also outlines the commission payment. This ensures that the agent is compensated for their work.
This document includes: The timeline of the agreement, the area buyers is looking in, what kind of home the buyer is looking for and the commission. It needs to be signed by both the Buyer Client and the Realtor.
The discussion of payment can be difficult for many business owners but it is an important step. This is one of the important things that the Buyer Representation Agreement can bring up. It also opens a discussion to talk about what you both expect from the relationship. Such as: What is the client’s preferred method of communication? What kind of home are they looking for? How soon do they want to move? What kind of access they will have with the realtor? Timelines for booking showings and more. This helps everyone have a good understanding of what to expect from each other.
This is also a good time to review what the process of buying a home looks like. The clients may be first-time home buyers or they haven’t purchased in a while. I take this chance to review the offer forms with my clients as well as the step-by-step process of buying a house.
All these steps help to ensure that this relationship is beneficial to everyone. Still, not everyone may be happy after some time working together. It is best to try and understand each other and make the changes needed to find the best house for the buyer client. Clear and open communication can help make this a great relationship. The realtor/client relationship is a two way street. Yes, a client can end a relationship with their realtor. Likewise, a realtor can end a relationship with a client.
With open and honest communication both the clients and realtor can have a great, beneficial relationship with each other. And, the plan is, to find a wonderful house for them with the least amount of stress possible.