Authority

This authorises me (or any of my agents) to provide you with access to any real property that meets your interest or requirements. These properties may be currently listed For Sale or have expired some time ago; or even have Sold some time ago: in which case some contact with the new owner may be required to find out if they are interested in Resale.

 

Commission

Generally in the Chatham/Kent Area the typical Commission for Listing/Selling a property is about 6%. In most instances when there is a Listing Broker and a Selling Broker the commission split is 50/50 or 3% to each. When one agent acts specifically for a certain client ie buyer or seller; they should be entitled to their full share of the split. However, this Website is unique. Most of the thrill and excitement of buying a house is in the search and discovery itself. Once the dream home has been found; the commission and who gets How Much is of little concern to the buyers. Therefore if you only want to use this Web Site as a searching Method only; and want to deal with another Broker, who may be a long time friend or relative of the family! My fee is only 1% of Sale Price and the Holdover period is 90 days. The Holdover period is applied after the Date that this contract has terminated. It means if you find a home on this Web Site and make an offer to Purchase it within 90 days after this contract has expired; then I am entitled to my 1% commission from the proceeds of the Sale. Please be advised that I would most like to represent you fully and take part in the showings and presentations at the Offer to Purchase.

 

Agency

The Agency Relationship should be explained to you before Listing or Buying a house. When working with a REALTOR, it is important to understand who the REALTOR works for and to whom is the REALTOR legally obligates?

There are different forms of Agency Relationships and following is a description of each: Taken from the Working With a Realtor Agency Relationship Brochure: 

Buyer's Agent
A real estate company acting as a "buyer's agent must do what is best for the buyer.

A written contract, called a buyer agency agreement, establishes buyer agency. It also explains services the company will provide (ie. such as access to this web site); establishes a fee arrangement (commission split) for the REALTOR's services and specifies what obligations a buyer may have.

Typically, buyers will be obliged to work exclusively with that company for a period of time, (except for my 1% commission split for access only).

Confidential information a buyer shares with the buyer's agent must be kept confidential.

Although confidential information about the buyer cannot be disclosed, a seller working with a buyer's agent can expect to be treated fairly and honestly.

Seller's Agent
When a real estate company is an "seller's agent," it must do what is best for the seller of a property.

A written contract, called a listing agreement establishes seller agency. It also explains services the company will provide, establishes a fee arrangement for the REALTOR's services and specifies what obligations a seller may have.

A seller's agent must tell the seller anything known about a buyer. For instance, if seller's agent knows a buyer is willing to offer more for a property that information must be shared with the seller.

Confidential information a seller shares with a seller's agent must be kept confidential from potential buyers and others.

Although confidential information about the seller cannot be discussed, a buyer working with a seller's agent can expect fair and honest service from the seller's agent and disclosure of pertinent information about the property.

Dual Agent
Occasionally a real estate company will be the agent of both the buyer and the seller. The buyer and seller must consent to this arrangement in their listing and buyer agency agreements. under this "dual agency" arrangement, the company must do what is best for both the buyer and the seller

Since the company's loyalty is divided between the buyer and the seller who have conflicting interests, it is absolutely essential that a dual agency relationship be established in a written agency agreement. This agreement specifically describes the rights and duties of everyone involved and any limitations to those rights and duties.

Who's working for you?
It is important that you understand who the REALTOR is working for. For example, both the seller and the buyer may have their own agent which means they each have a REALTOR who is working for them.

Or, some buyers choose to contact the seller's agent directly. Under this arrangement the REALTOR is working for the seller, and must do what is best for the seller, but may provide many valuable services to the buyer.

A REALTOR working with a buyer may even be a "sub-agent" of the seller. Under sub-agency, both the listing agent and the co-operating agent must do what is best for the seller even though the sub-agent may provide many valuable services to the buyer.

If the seller and the buyer have the same agent, this is dual agency and the REALTOR is working for both the seller and the buyer.

Code of Ethics
REALTORS believe it is important that the people they work with understand their agency relationship. That's why agency disclosure is included in a self-imposed Code of Ethics which is administered by the Real Estate Council of Ontario. The Code requires REALTORS to disclose in writing the nature of the services they are providing, and encourages REALTORS to obtain written acknowledgement of that disclosure. The Code also requires REALTORS to enter into a written agency agreement with any sellers or buyers they are representing.

REALTORS are governed by the legal concept of "agency." An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person.

A real estate company may be your agent - if you have clearly established an agency relationship with that REALTOR. But often, you may assume such an obligation exists when it does not.

REALTORS believe it is important that the people they work with understand when an agency relationship exists and when it does not - and understand what it means.

Indemnification

This points out that Brokers and Sales People are not qualified to determine the actual physical condition of the land or buildings therein. In most cases a Home Inspection is recommended; unless it is Newly built and under warranty.

 

Finders Fees

First make sure you look at the Mortgage Calculator which is part of this Web Site. If you cannot arrange a mortgage through a bank or lending institution: private lenders are available; and if I can assist you; I may receive an additional Fee from the Lender.

 

Consumers Report

When you make an Application for a mortgage; the Banks or Lenders are going to check your Credit Rating. This may determine whether you will get the Loan or Not; or How Much your interest rate may be.

 

Conflict or Discrepancy

This form is a standard pre-set form published by OREA (Ontario Real Estate Association). The addition is a feature such as the 1% commission split for search methods only; as described above will supersede the pre-set Form and will form part of the agreement. 

 

Definitions

If you are the buyer this also includes your wife or husband etc. and common law spouse.

 

Electronic Communication

Many people have their digital signature registered and on their computer. If you do, you can email me this agreement and printout a copy for yourself. If you do not you can print a copy, sign it and fax it to me at 519-351-2221. This transmission will constitute a legally binding agreement.