Brian Madigan LL.B., Broker
BRMadigan@iSourceRealEstate.com

RE/MAX West Realty Inc.,
Brokerage
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 


Phone: 416-745-2300
Toll Free: 1-888-507-0817

 

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Buyer Customer Service Agreement (Part 16) - DECLARATION of INSURANCE

June 2, 2015 - Updated: June 2, 2015

 

Buyer Customer Service Agreement - Declaration of Insurance

 

We will review the “Declaration of Insurance” provision in the Customer Service agreement in detail. My comments will appear in “italics”. I will first set out the section in full as it appears in the document, then I will break it apart for detailed review.

 

 

“DECLARATION OF INSURANCE

 

The broker/salesperson..................................................................................................................................................................................

(Name of Broker/Salesperson)

 

hereby declares that he/she is insured as required by the Real Estate and Business Brokers Act (REBBA) and Regulations.

......................................................................................................................................................................................

(Signature(s) of Broker/Salesperson)”

 

REVIEW

 

DECLARATION OF INSURANCE

 

The broker/salesperson..................................................................................................................................................................................

(Name of Broker/Salesperson)

 

The only circumstance here is the statement by the individual broker or sales representative. The Brokerage is not signing, nor is it confirming that it also carries insurance.

 

hereby declares that he/she is insured as required by the Real Estate and Business Brokers Act (REBBA) and Regulations.

............................................................

 

...........................................................

(Signature(s) of Broker/Salesperson)”

 

There is room for two brokers or sale representatives to sign. The interesting question, of course, is that this is not true “evidence of insurance”. It’s just a statement. If it’s wrong, it’s wrong. Assume a former agent, no longer covered by insurance who falsifies this statement. There is no insurance.

 

The proper due diligence step would be to check the RECO website and confirm the status of the person’s registration.

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: buyer customer service contract insurance declaration evidence ontario law
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Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

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