‘The salesperson works for me, right!?’
Your salesperson will work on your behalf to find you a house and will negotiate for it on the best terms possible for you if you retain the salesperson by signing a Buyer Brokerage Agreement.
Buyer Agency
If you sign a Buyer Brokerage Agreement then your agent is called the Selling Agent or the Cooperating salesperson in the transaction. They work exclusively to represent and protect their Buyer’s best interests. Selling or Co-op agents do not owe their allegiance to the Seller so they can fight on their Buyer’s behalf to get the house on the best terms for the buyer. The Seller’s interests are protected by the listing agent of the property.
Who Pays The Salesperson?
In the case of Buyer Brokerage, the Cooperating Agent can either be compensated directly by the purchaser or be compensated through the Listing Brokerage from the proceeds of the sale. Buyers are usually only responsible to directly compensate the Selling Agent if they purchase a property which has not been listed for sale. Buyer Brokerage Agreements clearly detail any responsibility for payment of commissions. Buyers should discuss the type of agency relationship they desire to have as well as Realtor compensation with their Realtor. Please read, review, and ask questions of your salesperson until you completely understand.
Where Do I Go from Here?
After reviewing and understanding the forms it will be necessary for you to choose and authorize the appropriate representation. This should to be done before you can look at homes. Representation agreements are now required by law in Ontario if you purchase a property through a registered real estate sales representative.
