Contract with a property agent

[moesan]

Hello,

We are planning to buy a pre-construction condo in Toronto. Our realtor what us to sign us this contract - https://drive.google.com/drive/folders/0B46CzeP74Z2fVVY2SU1CMzFoWlE?usp=sharing - before proceeding.


Is it a standard procedure? What are our liability if we sign? What kind of question shall we ask him?


Thank you!


Best,
MS

 

[rolandatremax]

Its a standard real estate agreement to make you the client of that particular real estate brokerage. It would mean you are exclusive to them for looking to buy a home for the period as specified in the agreement (can be up to 6 months).

As long as your relationship with them is good you are fine to sign it. Just be aware it is a legal and binding agreement.

Sincerely,

Roland Archer
Real Estate Sales Representative, Re/Max Land Exchange Ltd. Brokerage
Cell: 519-755-7409
Toll-Free: 1-866-648-1844

 

[anujoshi]

Yes this document is called a "Buyer Representation Agreement" meaning they are exclusively your agent for the time period stated in the contract. Like the previous response, do note that this is a legally binding agreement.

 

[torontosm]

Hello,

We are planning to buy a pre-construction condo in Toronto. Our realtor what us to sign us this contract - https://drive.google.com/drive/folders/0B46CzeP74Z2fVVY2SU1CMzFoWlE?usp=sharing - before proceeding.


Is it a standard procedure? What are our liability if we sign? What kind of question shall we ask him?


Thank you!


Best,
MS

Signing this agreement is indeed standard procedure. However, you should be aware that these terms are not fixed, and can be edited if you would like. For example, the standard contract has a ludicrous clause that states that if the seller's agent never pays your broker the commission he is owed, you have to pay it. This is one that I strike out every time. There are numerous others that make no sense, and that should be removed as well. Make sure you read the entire document carefully before signing.

 

[xpressentry]

Why should the buyer have 1 agent only. If the buyer signs with multiple agents, they will get to see more homes and can make a more informed choice. I think the seller should have this exclusive arrangement.

 

[torontosm]

Why should the buyer have 1 agent only. If the buyer signs with multiple agents, they will get to see more homes and can make a more informed choice. I think the seller should have this exclusive arrangement.

You can see as many homes as you want with one agent. All the homes are listed on MLS and your one agent can arrange viewings. How would having a second or third agent help in any way?

 

[anujoshi]

Why should the buyer have 1 agent only. If the buyer signs with multiple agents, they will get to see more homes and can make a more informed choice. I think the seller should have this exclusive arrangement.

One good Realtor will be able to show you all the homes on the MLS (Multiple Listing Service) which are available that meet your criteria. More agents doesn't mean a better job. Usually it's the opposite - you may get confused on who to deal with about which property, and there are conflicts of interest between the agents, and you may get multiple sources of advice which may not make your decision any easier/better informed. It is usually best to work with 1 single Realtor who is professional and can assist you with all your queries from A to Z, who understands your family's requirements/criteria thoroughly, who is aware of your financial situation, and can provide the best service to you overall in the home buying process.

I am a Realtor. I provide professional, competent service to all my clients. I dedicate my professional time and expertise to giving advice to my clients, searching properties, conducting market research, delivering listings which meet their criteria, and seeing the properties with them. I request that in return they sign with me so I can help them from A to Z. I have not had any issue with my past clients regarding this relationship.

Again, spend time interviewing/talking to multiple Realtors but work with the one you think is the most competent, who understands your needs, and who you think can deliver you the best service.

Good luck.

 

[arunsgirl]

Before you decide to buy any pre-construction condos look at the condition of the housing market.

Read articles in Globe and Mail, BNN, statistics on Orea, Crea and TREB. Look at housing starts and occupancy, that will tell you how many units are being built and how well they are renting. Also, look for a buyers agent and never ever allow yourself to be pushed into a real estate transaction.

Ask the agent to take you to see 20, 30 homes and if they are not interested in doing so, they are in it for themselves not your needs. It is a hot market, transactions happen quickly and people overpay and make costly mistakes. Buying real estate is one of the biggest purchases we make in life.

Make sure you have the help of a person who is there to truly help you make the best decision not just earn some money for themselves.