The Buyer Representation Agreement (BRA)
A CLEAR EXPLANATION OF IT
There is a perception out there that once you sign the dreaded Buyer's Representation Agreement (BRA) that you are forever bound to this agent until he finds you an home and that is simply just not the case. Many people are reluctant to sign one because of this rumour circulating around out there. I will take you through the many variables listed below which you can choose when signing this agreement. It's best to give this a read through and to properly understand how this can benefit you the buyer or watch the video above.
Now to you when I say "Client" or "Customer" I would bet that most would think that they are pretty much the same thing, but to a Realtor they are two completely different things. These two words have a distinct and important difference in how seriously you will be taken as a Buyer and the type and level of service you are setting yourself up to be receiving.
Now I have to veer off a little from the buying side of things to better educate you on the differences these words have. So let's say you are listing your home for sale with a Realtor and in doing this you are required to enter into a written contract. This is there to protect you, the Real Estate Agent and their brokerage, due to the time and expenses incurred by them as they will not be paid until the closing of the home. The real benefit here is for the homeowner, after you have entered the contract the Real Estate Agent now has a fiduciary responsibility to get the highest price possible and to protect your interests above all else. Now you - the home owner are a "Client" and will now be able to enjoy and experience the full priveleges of a close working relationship with your Realtor where your interest are first and foremost.
This will now enable your Realtor to market yourhome, network it to other realtors, negotiate the sale contract and help guide you the Seller to a successful closing. This also better protects the agent from any homeowners who wish you use and benefit from the Realtor's services without fair compensation for their work.
Now Buyers have worked with Realtors too but there were instances of abuse to the Buyer agents and increased customer awareness, Buyers are now asked to enter into a BRA.
Now without this contract signed this makes the Buyer's Sales Representative extremely vulnerable to work without getting paid as their expenses and time spent to set up showings to see certain properties, transportation costs and also the time spent viewing the properties as well could all be for not if the Buyers are simply just using the agent as they already have a friend who's an agent but they don't want to bother him until they are ready to purchase a property. Not very fair is it? This is why there is a BRA now in place as the Buyers soon realized at the negotiating table their Realtor was actually eorking for the Seller and not them. They did not have a true advocate to represent their interests with a contract and the only way to protect the interests was to create a binding agreement that protects both parties.
Good Realtors didn't want to get burned again so the BRA was created. It does serve as protection for the realtor but it generates many more benefits for the Buyer. It's main advantage is that it releases the agent from a fiduciary responsibility to the Seller and now enables the Buyer agent to pursue the Buyer's goals without any agenda as the Buyer is now a "Client" also.
But this still makes some Buyers reluctant to sign this as they don't want to be tied down to one agent. Some think that getting a few agents working for them will get them a better deal but that is simply not the case. If you do not come across as a serious buyer and with the strength on the communication network in the Real Estate industry, you will in some way be found out and not taken seriously by any Realtor.
Many Buyer's also believe that you must enter into a contract for a long period of time and this too is also false. You can sign this agreement for only one property, one day, one weekend, a month......etc. You get to choose and most agents are just happy that you are willing to sign and will then really get to work for you. The contract can also stipulate the agreement by one city, town or general area (GTA) or type of property such as commercial or residential.
Without a contract the Buyer is not a "Client" and is simply just a "Customer" and when a good listing comes on the market who do you think a realtor is going to take to see it first? The uncommited Buyer (Customer) or the contracted Buyer (Client) Just step back and look at who do you think the agent is going to work harder for and put their best efforts forth in finding their next home for them?
In reality the Buyer has no protection without a contract and anything that may have been said to the uncontracted Realtor may be passed along to the Seller without penalty.
WHY IS IT LIKE THIS, HOW IS THIS POSSIBLE YOU SAY?
It's simple, any Realtor who works for the Buyer without a contract automatically becomes a sub-agent for the listing broker and is therefore working on behalf of the Seller. Are you surprised? It's all there in the Listing Agreement and the Buyer Agreement.
It's the contract that makes the difference whether you are looked at as a Client or a Customer in a real estate transaction. Well now you know the differnce and you should have a better understanding of why we have these forms and their importance is not to just protect us but it's there to better protect you as well.
JUST KEEP THESE THINGS IN MIND AS THE BOTTOM LINE
Do you want an advocate representing you and not the Seller?
Do you want to work with a Realtor who'll protect your interests?
Do you want to be taken seriously as a Buyer?
Do you want to receive the level of service you expect and deserve to have from a Realtor?
I'M ALWAYS HERE TO HELP, HOPE THIS GAVE YOU A BETTER EXPLANATION ON WHY WE HAVE THESE FORMS IN PLACE