Real Estate Agency Explained
Buyer Agency
Mississauga Real Estate Agency: Buyer Agency
Buyer Agent: The Ontario Real Estate Association has
developed a standard buyer agency agreement that brokers can use
with clients. Any licensed real estate salesperson in Canada can legally act as a buyer's
salesperson/broker. A buyer's salesperson performs services for you that a seller's
salesperson
can't, such as showing you reasons not to buy a particular property.
A good buyer salesperson will include contingencies in the contract that
protect you, rather than the seller as in most standard contracts, and
keep confidential any information that could hurt your bargaining
position. The hallmarks of this relationship are good faith, full
disclosure, competence, obedience, and accounting. The buyer and the
brokerage will enter into a signed buyer agency agreement that details
their relationship.
Bear in mind that the seller's salesperson (salesperson whose
name is on the lawn sign) always works for the best interest of
his/her seller. Brokerages have to disclose
all relevant information they have on property defects to sellers. But
brokerages must tell buyers only about material defects that render the
property dangerous or unfit for habitation, not necessarily all defects
in a property. That's where a buyer agency comes in handy, being free to
talk about anything that can affect the buyer's interests.
When you decided to buy, the services of a qualified in real
estate professional; salesperson acting as your buyer representative, is of
utmost importance. The ideal buyer's salesperson will have a good
working knowledge of the local real estate market conditions, can
advise you about current government programs that benefit consumers,
provide you with insight into market trends, current market values
of similar properties, add conditions and clauses in
agreement of purchase and
sale to protect you interest, offer information about the amenities of
specific neighbourhood and have the support of a reputed real estate
company.
The seller usually pays all commission to
the listing brokerage who, in turn, forwards the appropriate portion to
the buyer’s brokerage. Alternatively, the buyer’s brokerage can be paid
directly by the buyer and, therefore, this amount does not form part of
the sale proceeds. In most transactions, the commission to the buyer’s
brokerage is paid via the listing brokerage from the proceeds of the
sale.
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Seller Agency
Mississauga Real Estate Agency: Seller Agency
When a real estate company is a “seller's agent,” it must do what
is best for the seller of a property. Seller Agency establishes a
relationship in which the brokerage and its salespeople represent
the interests of the seller exclusively. This agreement/contract
sets out what the seller instructs the brokerage to do and what
services are provided under seller agency.
Further, it provides that
representatives of the seller will use their professional
negotiation skills to seek qualified buyers and generally promote
the listed property, while keeping information concerning the seller
confidential and always acting in the seller’s best interests. The
hallmarks of this relationship are good faith, full disclosure,
competence, obedience, and accounting.
The seller has traditionally
paid a commission directly to the brokerage. The listing brokerage then
pays any brokers or salespeople within its employ and, if
applicable, any co-operating brokerages involved in the transaction.
The Seller signs the listing
agreement with the brokerage.
Read Amit's blog post:
buying a home from listing agent myth
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Multiple Representation
Mississauga Real Estate Agency: Multiple
Representation
Occasionally a real estate company will be the agent of both the buyer
and the seller. The same brokerage has an agency relationship with both
the buyer and the seller in a real estate transaction. Multiple
representation also
occurs when different salespeople represent buyer and seller, and are
employed by the same brokerage, including those who work in different
branch offices. The brokerage or its representatives must advise the
seller and the buyer of the dual aspect of representation and must be
impartial when representing both parties. Both buyer and seller must
give their informed consent to this form of representation.
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Toronto
REALTORS® and Multiple Listing Service
REALTOR® is a registered trademark of the Canadian Real Estate
Association.
Toronto Real Estate Board REALTORS® are licensed professionals who must
meet continuing education requirements and abide by a strict code of
ethics.
The MLS® Multiple Listing Service® is a co-operative system used only
by Canada's real estate boards to give maximum exposure of properties
listed for sale. About 90 per cent of all resale homes in Canada go
through MLS®. Toronto Real Estate Board's Multiple Listing Service
Board members can
help you search your dreams in the most effective manner. Toronto Real
Estate Board (more than 30,000 members) share the same database
of properties sold on the Toronto Real Estate Board Multiple Listing
Service (TREB MLS®).
Seller benefits: Real estate salespeople search specific streets, focus on a particular range and
analyze the data to determine a fair listing price. From the search
results of the comparable properties, such as sold price, list price
and average time on the market, the Real estate salespeople can interpret the
information, in light of current trends.
Buyer benefits: Real estate salespeople create a profile that depicts the buyer's
housing needs in terms of basics such as price and location as well as
information on other features of the property. Real estate salespeople then search
specific properties and determine historical data such as previous
selling prices etc. By maintaining a comprehensive list of all active,
sold and expired listings as well as historical data, the MLS system
allows the real estate professional to ensure informed decisions.
In order to reap the maximum benefit of the system and to see the homes
as soon as they are listed one should work with real estate
professional. Your
licensed real estate sales professional can give you a head start by sending you property
listings as soon as they come on the market. Many good properties get
sold much before they are posted on the public real estate board websites. So it
makes sense to work exclusively with a salesperson when you buy or sell
your home.
Contact Amit if you are thinking to buy or sell a resale home
/apartment or new builder apartment in Downtown Mississauga and
West Mississauga.
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