By signing this agreement, you will be a Bonafide customer. As a client, you have an obligation to retain your real estate agent and real estate broker. Without this signed agreement, your agent has no fiduciary duty to you, which means they don`t necessarily have a duty to keep in mind your best interests when they show you their homes or negotiate with a seller. Each year, RECO hears about consumers who have signed either an RR contract or a list contract and then realized that they had agreed to terms they did not want. That`s why it`s important to read any document your broker invites you to sign, ask your seller to pass you on and show it to a lawyer. I know of another situation where someone signed a buyer`s contract for a lease. Instead of 2.5 percent commission, the real estate agent was entitled to half a month`s rent. A few months after the agent obtained a rental unit, they worked with another agent and bought a house. From personal experience, I know that some agents could take you hostage with a buyer`s agreement, I let the customers come to me and say, “I can`t get out of this agreement, the agent refuses to terminate it.” It should be noted that you do not have to make a purchase. Nowhere in a buyer`s replacement agreement is it said that you must make a purchase as part of the contract details. Learn more about other clauses and agreements that are important to sellers when they sign a list agreement.
Buyer agreements can also be included in a given geographic region. The region can be as large as a province or as small as a quarter. In the end, a buyer`s contract is a contract, so it doesn`t have to be easy to get out of it. What they did not know – because they had not read the lease or had not been properly explained to them – was that they had signed a lease and a buyer`s contract, which meant that the leasing agent was also entitled to the 2.5% commission he received from that purchase. Many buyers may be reluctant to sign a buyer`s replacement agreement because they do not want to be tied to a particular agent and broker for a while, for whatever reason. The good news is that these agreements can be dissociated before the deadline expires, if both parties agree. Simply put, this is a legal document that formalizes your working relationship with a real estate agent to purchase a new property. It describes the services you are entitled to and what your realtor expects of you in return. Signing this agreement is not a legal requirement and you are not required to buy a house or place an offer during the term of the contract.
A BRA may have a period of time, but if it lasts more than six months, you are asked to start the expiration date in addition to your signature on the document. This is to make sure you understand the length of the agreement. In addition, a Holdover clause can bind you to brokerage for a long time, even after the formal run of the BRA. If you are buying a home that was shown to you by the brokerage company when the BRA was in effect, you may still owe a commission to the real estate agent depending on when you make the purchase. The duration of the Holdover clause must be clearly stated and agreed upon by you and the real estate agent. In addition to your agent`s fiduciary duty to protect your interests in a real estate transaction, a buyer`s representation agreement also helps you better understand the role your agent plays in this transaction.