Why you need to enter into a Buyer Representation Agreement

Have you ever wondered why the agent showing you a house can't always help you write an offer? Let's dive into the specifics of real estate representation under the new TRESA rules. As a potential buyer, you might find a property you love while touring homes with an agent.

Naturally, you’d think the next step is to have that agent help you write an offer. However, there's a crucial distinction to understand. If this agent isn't the listing agent or your designated buyer agent, they cannot write the offer for you. The listing agent, who represents the seller, can show you the house.

But unless you agree to dual agency, where the agent represents both you and the seller, you'll need separate representation to proceed with an offer. Some listing agents won't even show the property to you unless you sign a representation agreement with them, with the seller's permission. Gone are the days of just calling your realtor friend to show you a house quickly. The rules now clearly state they need to enter into an agreement with you, or they can't help you.

 

This agreement can be short-term and property-specific, but it must be signed. These rules were implemented because the public often believed they had representation when they didn’t. TRESA clarified this to eliminate any guesswork, and regulators are conducting audits to ensure compliance. If an agent refuses to show you a property without this agreement, they’re not trying to be difficult—they’re following the law. Entering into a formal buyer representation agreement ensures that your chosen agent is legally bound to act in your best interest, guiding you through the process with your needs as the priority.

 

These measures, implemented by TRESA, aim to protect buyers and sellers alike, ensuring clarity and fairness in every transaction. So, remember, if the agent showing you the house isn't the listing agent or your buyer agent, they can’t help you write an offer. To ensure seamless and dedicated representation, formalize your relationship with a buyer representation agreement. For a private tour contact us directly at 519-624-9222 Thank you for watching.

 

Let us help you with your real estate and mortgage needs. We serve the Cambridge, Kitchener, Waterloo, Guelph and Brantford areas. Check out our website at http://www.maximumresults.ca