Posted May 28th 2020
Buyer Representation Agreement: Authority for Purchase or Lease
OREA Form 300
This form is a contract between a Buyer and The Baird Team that gives Royal LePage Baird Real Estate permission to act on the Buyer’s behalf in the purchase of a property. Assuming the Buyer is a Client of Royal LePage Baird Real Estate, 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 signature prior to an offer being presented on behalf of the Buyer. The section at the top of the form identifies the parties involved in the Agreement and sets the time frame for which the contract is valid. The REBBA Code of Ethics requires the Buyer’s initials on this Form if the Agreement is to extend beyond six months. The Baird Team’s philosophy with Buyer Representation Agreements is this: we will never force a Buyer into a contract with us. We let our service and work ethic speak volumes to our Buyers to show our value. Once we find our buyers the perfect home that they would like to make an offer on, that is when we have our Buyers sign the Buyer Representation Agreement for that home specifically. We do not believe in locking in Buyers into long contracts that they feel pressured in working with us.
Working With A Realtor
OREA Form 810
This form is required under Section 10 of the Code of Ethics to fulfill the requirements of Information before agreements. The first section of this form highlights that a contract for real estate services is with the Royal LePage Baird Real Estate. The Baird Team is employed by Royal LePage Baird Real Estate as representatives to provide the services of the brokerage. Royal LePage Baird Real Estate falls under the responsibility of the Broker of Record. Also important to note that the consumer is entitled to know the different types of service relationships that are available.
The first type of relationship is a client relationship. It is important to note that this is the highest level of relationship between The Baird Team and a consumer. There are duties which the law states are mandatory to a client called fiduciary duties. The “client” arrangement is created through a representation agreement. Clients can be Sellers or Buyers. For Buyers, the representation agreements would come in the form of a Buyer Representation Agreement. While in a client relationship, Royal LePage Baird Real Estate and The Baird Team must protect the interests of the client and not disclose confidential information to others. In a customer relationship, The Baird Team is still required to treat the customer with honesty, fairness and integrity but the services will be on a restricted level. It is possible that our brokerage and team will be representing more than one client on a transaction or where there is more than one offer on a property. Where Royal LePage Baird Real Estate represents more than one client on a transaction, this is called multiple representation.
Confirmation of Co-operation and Representation
OREA Form 320
This form is used to indicate to all parties involved the specific types of relationships that exist in their real estate transaction. The Form is used to set up an arrangement between brokerages and is acknowledged by the parties. Typically the Seller is represented by the Listing Brokerage and the Buyer is represented by the Co-operating Brokerage. In situations where The Baird Team is representing the Buyer, Royal LePage Baird Real Estate would be the Co-Operating brokerage. Sometimes, the Buyer and Seller are both represented by the Royal LePage Baird Real Estate during the transation, in which case, this is called Multiple Representation. There are certain requirements that the Real Estate and Business Brokers Act, 2002 requires and including getting the consent of all the parties. There is a section on the form to confirm that in multiple representation circumstances, there is certain information that will remain confidential. There is also a place for disclosure when Royal LePage Baird Real Estate is representing more than Buyer in the same transaction.
Agreement of Purchase and Sale
OREA Form 100
The Agreement of Purchase and Sale is the document used to state the Buyer’s desire to purchase the property, and to negotiate the terms of the sale. It is often referred to as an “Offer”. This document also allows the Buyer an opportunity to set out in detail all of the terms and conditions they wish to be part of their Offer when buying the Seller’s property. Common examples of a Buyer’s conditions include arranging financing (a mortgage) for the property to be purchased, completing a home inspection, arranging for fire insurance or ensuring they can sell their current home before purchasing. After the Offer is prepared and signed by the Buyer, it is presented to the Seller for consideration and possible acceptance. The Seller, in turn, may want to make changes to the Offer for the Buyer’s consideration. This process can continue back and forth several times in an effort to reach an agreement. The Baird Team and Royal LePage Baird Real Estate are here to protect the Buyers interests.