BUYER REPRESENTATION AGREEMENT 

This may look like a fearful document, but it really is not.

You are hiring a Realtor to work with/for you.  It is a commitent by both parties to work together for a specific period of time, with specific goals, while outining the compensation afforded to your Realtor.

The Buyer Representation Agreement sets out your relationship with your Realtor, what you want to accomplish, and outlines the timeframe from the start date to end date.  (If the contract is for a longer period that 6 months, you need to acknowledge this in the Agreement, by initialling the start and finish date.) 

The Agreement sets out the type of property you are looking for, an example would be residential purchase, and the geographic area you are looking to buy, such as Toronto or Vaughan.  The Agreement can encompass more than one area and more than one type of property.

The Realtor and Buyer will establish a commission that the Buyer would pay, in the event the commissions are not paid by the Seller or Listing Brokerage, or any shortfall that is established in the Buyer Representation Agreement.  

An example would be, if you established that 2.5 % of a purchase price is the commission your Realtor is entitled to, and the Seller is paying 2.5% commission, there is no commission payable by you to your Realtor. 

However,  if your Buyer Representation Agreement is for 2.5 % commission, and the Seller is paying 2 % commissions, under the Buyer Representation Agreement you would pay the .5% commissions to your Realtor.  

The Agreement covers in detail the obligations of each party.  

It is best to ask your Realtor for a copy of the Agreement for review, always know what you are signing, and don’t be afraid to ask questions.