Understanding a Buyer Representation Agreement
You’re ready to sign a Buyer Representation Agreement with an agent? Well, there are some things that you should check about the agreement before you sign on the dotted line.
Term: First of all, you should look at the term in the agreement, and make sure that the term that you’re committing to that agent is a time period that you’re comfortable with.
Location: You should also look at the geographical location. Does it make sense? You want to make sure that you’re committing to work with that agent in a geographical location where he is an expert in. It doesn’t make sense to hire a Guelph agent to buy a property out in Scarborough.
Property Type: The other thing you need to look at is the property type. You want to make sure that if you’re looking for a residential property, it states that in the agreement. You don’t want to be committed to working with a residential agent for a different commercial purchase that you’re planning on doing.
Commision: Another thing to look at is the commission. You want to make sure that the commission the agent’s asking for is a common commission that’s paid out to a buyer’s representative in your marketplace. And you should ask the agent that if you purchase a property where the commission is less than what they’re asking for in the agreement, how they’re going to handle that situation.
Cancelation: Lastly, if it’s your first time working with that realtor, it may be good idea for you to ask them if they’re willing to put a cancellation clause in the agreement. Just in case things don’t work out. I do think it’s a great idea for you to sign a Buyer’s Representation Agreement and to work with a realtor whose looking out for your best interest. You just have to make sure that you understand all the details of the contract before you sign.