Our Debt Free Family

Commit. Plan. Take action.

  • ABOUT
  • CONTACT
  • FREE FB GROUP
  • FREE DEBT REDUCTION TOOLS
  • GET OUT OF DEBT
  • Privacy Policy

Should You Go Exclusive? The Buyer Agency Agreement

February 20, 2020 | Leave a Comment

Are you looking to buy a home in Ontario? Whether you’re looking to buy in Toronto, Hamilton or Kitchener, it’s a good idea to work with a real estate agent. By working with a local real estate agent who knows the real estate market well, you’re more likely to find your dream home sooner and pay a reasonable price for it.

When working with a real estate agent, you may be asked to sign a buyer agency agreement. The buyer agency agreement is a legal document that outlines the relationship with the brokerage. (In Ontario, it’s the BRA , for “buyer representation agreement,” which may be a funny acronym, but don’t let it fool you—it’s an important legal document.) It includes information such as your desired property type, location, commission and the amount of time of the agreement. It also places fiduciary duty on the brokerage to promote and protect your best interests.

Being an agent can be tough. When your agent helps you look for a home, they won’t get paid unless you buy a home with them. The BRA at least guarantees you won’t go behind your agent’s back and use another agent.

Should you sign a buyer agency agreement? In my experience, it’s usually the newer agents who ask you to sign one. When you do, you’re committed to working exclusively with the real estate brokerage for the length of the agreement. If your agent is a rock star, it shouldn’t be a problem. But what if they’re not a good fit? Unless they let you end the agreement early, you’re stuck working with the same brokerage until the agreement expires. If you buy a home with an agent at another brokerage, your first agent could sue both the second agent and you for breaching the agreement.

When you’re asked to sign a buyer agency agreement, think of yourself like the franchise player on an NBA team. Would Kyle Lowry or LeBron James sign the first contract offer put in front of them? I don’t think so. Take time to think it over. If you do decide to sign an agreement, give your agent a trial run. Start with 30 days and see how it goes (signing any longer than three months is nuts!). You can extend it once your agent proves they’re a rock star. Also, make sure the agreement is limited to a specific geographic area and property type (e.g., houses, townhouses, or condos).

Check with the regulator in the jurisdiction you’re buying in for the rules on buyer agency.

 

Brought to you by Sean Cooper

Filed Under: move

  • Facebook
  • Pinterest
  • RSS
  • Twitter

 


Five Steps To Debt Freedom

Here are five simple guidlines that will help you pay off debt.  

1) Get an emergency fund so you don’t take on debt when something comes up.

2) List your debts. This way you know where you stand.

3) Use the debt snowball. Pay your debts from smallest to largest, or most expensive to least expensive.

4) Avoid new debt. No new credit cards or loans. Period.

5) Go all cash. After everything is paid off, switch to all cash.

Helpful Resources

The Free Checklist for a Strong Financial Plan

U of Tennesse Debt Repayment Plan Basics

Vertex 42's Debt Payoff Calculator

Savingadvice's Helpful Debt Forums

Jackie Becks Debt Blog

Our Most Popular Articles

How Alice and Scott Paid off $200,000 in Student Loans

Learn How Christine Paid off $500,000

Use the Debt Snowball to Create a Payoff Plan

Do Nothing and Save Money with the Paribus App

Thanks To Our Advertisers

Get the tools to start living debt free! Learn more…

Need a title loan in Jacksonville, Florida? Go to 1-800 Loan Mart. Fast and easy applications.

Copyright © 2022 Runway Pro Theme by Viva la Violette