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If you have decided that you have the means and
the desire to own a home and would like to proceed
with making it happen, now is the time to start
investigating the Real Estate market with a qualified
and knowledgeable REALTOR®. Specifically,
you will want to know where you should be in the
buying process before contacting a Sales Representative,
who the REALTOR® is working for, and what
to expect from a REALTOR®.
Before contacting a REALTOR®, meaning a licensed
real estate professional who is a member of the
federal, provincial, and local real estate associations,
you should have already:
• barring unforeseen circumstances, made
a commitment to buy a home;
• in consultation with your preferred lending
institution, determined the amount you can afford
to pay for a home … also known as being 'pre-approved';
and
• written down the features in a home that
you 'must have' as well as those features that
would be 'nice to have'.
Now it is time to begin shopping for a REALTOR®.
Quite often, new buyers will seek the services
of someone who has been referred to them by a
friend or associate. However you choose a Sales
Representative or Broker, you should feel confident
that you can trust the person and be comfortable
working with him or her.
Once you have selected a REALTOR® with whom
you are going to work, you need to establish how
that person will represent you. This may seem
like an unusual requirement but the REALTOR®
may actually be working for the Vendor, also called
the 'homeowner', and it is important to understand
'agency relationships' or the responsibilities
of each agent in a real estate transaction. Because
relationships between Buyers, Sellers and REALTORS®
can often be more complex than would appear on
the surface, you should receive a copy of the
Ontario Real Estate Association (OREA) Agency
Brochure when you first meet your REALTOR®.
When reviewing the brochure keep in mind that
the information is presented from the Brokerage's
perspective, as opposed to individual Sales Representatives.
In other words, if a Royal LePage ProAlliance
Sales Representative were to bring an offer on
a home that is listed with a different Royal LePage
ProAlliance Sales Representative, the Brokerage
is still working for both parties. This is a common
occurrence in this area given the sheer size and
success of some of the local companies.
If you choose to sign a 'Buyers Representation
Agreement', the Brokerage of the Salesperson you
employ is working for you. In the event you wish
to make an offer on one of the listings held by
the REALTOR® with whom you are working, or
a listing held by the same Brokerage, both you
and the seller will be briefed on 'Multiple Representation'.
This will also be explained in more detail in
the OREA brochure.
You will also be briefed on the specific agency
relationships in play prior to an offer presentation
through a separate document known as the 'Confirmation
of Co-Operation and Representation'. In years
past, both Sales Reps worked for the homeowner
because they paid the commission.
This is no longer the case. While the homeowner
pays the commission, under a Buyer's Agency Agreement,
the Buyer's Agent is legally bound to represent
the Buyer's best interest or to do what is best
for his/her Buyer client.
In conclusion, the agency relationships between
Buyers, Sellers, and REALTORS® can initially
seem confusing. It is important to understand
how you are best protected from the minute you
enter an agency relationship. In other words,
who is looking after your best interests?
David
Weir BA, CD is a Broker with Royal LePage ProAlliance
Realty in Trenton. He has been the top-producing
office REALTOR® since 2001 and his sales in
this area have ranked him in the top 1% of Royal
LePage REALTORS® nationwide from 2005 - 2008.
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