So you’re ready to buy a new house. Whether it’s your first one or not, it can be both an exciting and a stressful time. There are so many things to think of when buying a house from legal to financial and logistics. Working with a Realtor Vancouver professional makes your life a lot easier and they’ll manage everything just like a project. Once you’ve agreed who you’re going to work with, then the first step is the Buyer Representation Agreement.
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What is a Buyer Representation Agreement?
- A contract detailing an exclusive relationship
- No legal obligation
This document is essentially a contract that both you and your Realtor Vancouver professional sign to ensure an exclusive relationship. This means that they are the only Realtor Vancouver professional you can work with for the time stated on the contract, usually six months. It’s designed to protect both you and the agent. You get the confidence that they’ll prioritize your interests and they’ll be reassured that they’ll be paid. Over the years, too many agents have searched properties for potential buyers without ever being paid for their efforts.
It’s worth nothing though that in most countries, including Canada, you don’t legally have to sign the agreement. You also don’t actually have to buy a home during the term of the contract. Naturally, there’s a commission clause, though, so make sure you’re happy with those terms. Moreover, there’s often something called a holdover clause. This clause means that you could owe commission for a period of time even after the contract has ended.
Why Enter into a Buyer Representation Agreement?
- Gives assurance of duties and commitment
- Ensures the success of your project
We’re all human and we need motivation to get us going. Signing such an agreement gives your Realtor Vancouver professional confidence that you’re serious. They’ll therefore want to invest their time and effort into your project. Also, without the agreement, they might still show you properties but they’re under no obligation to keep your view confidential from the seller. Essentially, they don’t have your best interest at heart and you might find your timeline drifting with no progress. On the flip side, with the agreement in place, a Realtor Vancouver agent has a professional duty to manage your project and do the best they can for you.
Key Things to Look for in a Buyer Agreement with your Realtor Vancouver professional
As you might expect, the agreement includes details of what kind of property you’re looking for and in which part of town. Furthermore, you’ll see more legal-style clauses as mentioned below:
- Termination Clause and Contract Time Frame
- Expected duties from your Realtor Vancouver professional
- Compensation
- Exclusivity
Termination Clause and Contract Time Frame
Like any legal document, you can expect to see details on how to break the contract. This also includes how long the contract is valid for. Everything is always negotiable, but the usual six-month timeline gives you a good chunk of time to find a home. Having said that, some Realtor Vancouver professionals will agree to 30 days or up to a year. Therefore, have a think about your personal timelines and what you feel would work for you. Also, pay close attention to the termination process and any potential termination fees.
Expected Duties from your Realtor Vancouver Professional
Any good contract lists out responsibilities and expectations. For example, they’ll be responsible for showing you properties as well as supporting you with legal and financial documents. Some might also include the offer and negotiation phase as well as any inspection tasks and how to deal when things go wrong.
Compensation
Clearly, such a document will include details of commission fees. It’s important that you’re happy with your Realtor Vancouver professional’s approach. Of course you can negotiate these fees. However, remember that you want to motivate your agents so finding a happy balance is important.
Exclusivity
The main purpose of the agreement is to establish a relationship between you and the agent such that no one else is involved. For you, this means that you can’t work with other Realtor Vancouver professionals. However, you might decide together that you want to have the flexibility to work with other agents. Some agents might not agree with this but, either way, you can always ask the question. Nevertheless, remember again how much an agent can have in mind your best interest if they know you’re also working with other competitors.
Final Recommendation for Reviewing your Buyer Representation Agreement with your Realtor Vancouver Professional
It’s easy to feel overwhelmed when taking the first steps of buying a house. However, once you’ve chosen a Realtor Vancouver professional that you feel you can trust then it doesn’t have be a complex process. Also, remember that 6 months goes by very quickly. Again though, if that feels too long then test things out with only 30 days. Either way, be as open and honest with your Realtor Vancouver professional as you can. You’ll then find that you’ve quickly established a strong relationship. Everything else should follow easily after that and the keys to your new home will be with you in no time at all.
