When it comes to purchasing a home, it is important to have a clear understanding of the role of your real estate agent and your legal rights as a buyer. One tool that can help clarify these matters is the OREA Buyer Representation Agreement.
OREA stands for the Ontario Real Estate Association, which is responsible for creating and promoting industry standards and best practices in Ontario`s real estate sector. The OREA Buyer Representation Agreement is a document that outlines the relationship between a buyer and their real estate agent.
In essence, the Buyer Representation Agreement is a contract that sets out the terms and conditions of the relationship between the buyer and their agent. It establishes the scope of the agent`s duties and responsibilities, outlines the buyer`s obligations, and provides a framework for communication and cooperation throughout the home buying process.
One of the key benefits of the Buyer Representation Agreement is that it ensures that the agent is working in the best interests of the buyer. The agreement makes it clear that the agent is representing the buyer, not the seller, and that they are obligated to provide the buyer with honest and impartial advice.
The agreement also establishes the commission that the agent will be paid upon the successful completion of the sale. This commission is typically paid by the seller, but the agreement clarifies how much the agent will receive and how it will be divided between the buyer`s agent and the seller`s agent.
One important aspect of the Buyer Representation Agreement is that it allows the buyer to terminate the relationship if they are not satisfied with their agent`s performance. If the buyer and their agent are not able to resolve their differences, the agreement provides a clear process for ending the relationship and finding a new agent.
It is important to note that the Buyer Representation Agreement is a legally binding document, and it is important that buyers read it carefully before signing. Buyers should also make sure that they fully understand the terms and conditions of the agreement, including the commission structure and their obligations as a buyer.
Overall, the OREA Buyer Representation Agreement is a valuable tool that can help buyers navigate the home buying process with confidence and clarity. By establishing clear expectations and responsibilities, the agreement can help ensure that buyers are well-informed and well-represented throughout the process.