If you`re looking to buy a home in Ontario, chances are you`ll come across something called a Buyer Representation Agreement (BRA) form. This document is a legal agreement between you, the buyer, and your real estate agent, outlining the terms of your relationship.
Essentially, the BRA ensures that your agent will work exclusively for you and have your best interests at heart throughout the home-buying process. It also lays out the commission structure for your agent – typically a percentage of the final sale price – and any other fees or expenses that may be involved.
Though not mandatory in Ontario, signing a BRA is becoming more and more common as buyers seek assurance that their agent is truly on their side. Plus, it can help avoid any miscommunications or misunderstandings down the line.
But before you sign on the dotted line, it`s important to understand the terms of the BRA and what you`re committing to. Here are some key things to keep in mind:
– Length of agreement: The BRA will specify how long you and your agent will be working together, typically anywhere from 30 to 120 days. Make sure you`re comfortable with the timeframe and that it aligns with your home-buying goals.
– Scope of representation: The BRA should outline exactly what services your agent will provide, such as searching for properties, arranging viewings, and negotiating on your behalf. It`s important to clarify any areas where you may need additional support or guidance.
– Commission structure: As mentioned, the BRA will outline how your agent will be compensated for their services. This is typically a percentage of the final sale price, but make sure you understand if there are any additional fees or expenses you`ll be responsible for.
– Termination clause: The BRA should also include a clause that outlines how either you or your agent can terminate the agreement if things aren`t working out. Make sure you understand the process for ending the agreement and any potential consequences.
Overall, a Buyer Representation Agreement can provide peace of mind and clarity for both you and your agent as you navigate the home-buying process. Just make sure you read and understand all the terms before signing on the dotted line.