PURCHASING YOUR HOME Your home is probably the biggest purchase you will ever make. The experience of searching for and buying your home need not be intimidating. Careful planning and a good relationship with your Agent can make it exciting . . . . and fun! Pat and Elspeth know the Greater Toronto area intimately. They are knowledgeable about school districts, specific neighbhourhoods and the community service systems. They will provide you with an excellent introduction to each community and they may in fact make your venture a whole lot of fun! The experience of buying a home and moving to a specific area should include the benefits of a qualified Agent. When you have the help of a professional who understands the area and the local market, how can you not make an educated and sound decision? Understanding Buyer Agency Until January 1, 1995, real estate Agents typically represented the Seller. While it may have appeared that the Agent was working with the Buyer in showing homes and presenting an offer, he was in fact working for the Seller. This relationship of both Agents working for the Seller was known as sub-agency and no longer exists. Buyers can now hire a real estate Agent to represent them in their home purchase, and they can do so at no additional cost! Today, the Listing Broker will represent the Seller, and a Buyer can enter into an Agency Agreement with an Agent. It should be clarified that “Agent” refers to the Broker and a sales representative acts on behalf of the Broker. Thus, we have Dual Agency relationship (both sales representatives act on behalf of the same broker but have separate clients); and Buyer Broker Agency (the sales representative acts on behalf of the Buyer but is compensated by the Listing Broker). Buyer Broker Agency can also work in that the Buyer’s Agent is compensated directly by the Buyer. In this situation the amount of information that is disclosed between parties is limited. Upon meeting with your sales representative it is common practice to complete Buyer Agency forms that will confirm the relationship between a Buyer and Agent. This written representation agreement (either Listing Agreement for Sellers or Agency Agreement for Buyers) will ensure that clients are properly represented. The Agent agrees to:
The Buyer agrees to:
What happens if a Buyer will not sign a Buyer Agency Agreement? Can an Agent still represent the Buyer? A Buyer that does not sign a Buyer Agency Agreement is in fact a customer. While Agents owe clients the highest level of fiduciary duties (competence, diligence, full disclosure, obedience, loyalty, confidentiality and complete accounting) and endeavour to protect and promote the best interests of their clients, a customer will be dealt with fairly, honestly and with integrity and not mislead the customer about a property or transaction. The Agent should exercise reasonable care and skill to ensure that answers given or information provided is complete and accurate. The customer loses the benefit of confidentiality and loyalty by not completing the Buyer Agency Agreement. Elspeth and Pat will ensure that they work conscientiously for their clients until the perfect home is found and purchased. Client loyalty is rewarded with Pat and Elspeth’s diligent efforts. Things BUYERS should DO and KNOW Before You Start
The Offer Process
Costs
An Important Note about Your Deposit The deposit is usually 5% to 10% of the purchase price. A cheque is made payable to the listing broker and held in trust in an interest bearing account until closing. The cheque must be certified at the time of offer presentation. It is important to note, that when house hunting cash funds should be readily available in order to proceed with an offer presentation. |
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