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 3) - The MANDATE

May 31, 2015 - Updated: May 31, 2015

 

Buyer Customer Service Agreement (Part 3) - The Mandate

 

We will review the “ Mandate” provisions 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.

 

 

“for the purpose of locating a real property meeting the following general description:

 

Property Type (Use):..................................................................................................................................

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

Geographic Location:.........................................................................................................................................................................................................................................................................

 

In consideration of the Brokerage providing customer service to the Buyer for the purchase or lease of a real property of the general description indicated above, the Buyer acknowledges and agrees to the terms as stated in this Agreement.

 

This non-exclusive Buyer Customer Service Agreement:

 

commences at........................a.m./p.m. on the.............................................................day of........................................................., 20.............,

and expires at 11:59 p.m. on the..............................................................day of......................................................., 20..............(Expiry Date).

 

Buyer acknowledges that the time period for this Agreement is negotiable between the Buyer and the Brokerage, however, in accordance with the Real Estate and Business Brokers Act of Ontario (2002),

 

if the time period for this Agreement exceeds six months, the Brokerage must obtain the Buyer’s initials.

 

The Buyer hereby warrants that the Buyer is not a party to a buyer representation agreement with any other registered real estate brokerage for the purchase or lease of a real property of the general description indicated above.”

 

 

 

REVIEW

 

“for the purpose of locating a real property meeting the following general description:

 

This is the commencement of the mandate. The task at hand is the “locating” of a property.

 

 

Property Type (Use):..................................................................................................................................

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

 

The type and use of the property are described. It might be for example a “single family residential” property or it could be a “commercial gas station”.

 

Geographic Location:.........................................................................................................................................................................................................................................................................

 

 

Where? Assuming there is nothing more important in real estate than Location, location, location, then, just where is this property to be found!

 

It will be important to assess the attributes and experience of the individual at the Brokerage providing service. Does this person have the knowledge in that particular geographical area (assuming that is of importance) or the type of property to be purchased?

 

 

 

In consideration of the Brokerage providing customer service to the Buyer for the purchase or lease of a real property of the general description indicated above, the Buyer acknowledges and agrees to the terms as stated in this Agreement.

 

This is the acknowledgement that there is contract. Consideration is identified, This agreement will be binding on both parties.

 

So, what’s the deal? It is to provide “customer service”. What’s that? It is whatever services happens to be spelled out in this agreement. If you are a consumer, you had better be sure that all the services you want or expect, are in fact covered off here.

 

This non-exclusive Buyer Customer Service Agreement:

 

commences at........................a.m./p.m. on the.............................................................day of........................................................., 20.............,

and expires at 11:59 p.m. on the..............................................................day of......................................................., 20..............(Expiry Date).

 

 

You will notice that there is a commencement time followed by an expiry date. It is not as important as agency, since that precludes a second agency agreement. But, the customer service level does not preclude other similar customer service agreements, all overlapping one another. This agreement is “non-exclusive”.

 

 

 

Buyer acknowledges that the time period for this Agreement is negotiable between the Buyer and the Brokerage, however, in accordance with the Real Estate and Business Brokers Act of Ontario (2002),

 

 

This agreement could be for any time period, a few hours, a day, a month or even longer.

 

if the time period for this Agreement exceeds six months, the Brokerage must obtain the Buyer’s initials.

 

 

Please note here that this provision appears in BOLD print. For agreements that extend beyond six (6) months, the Buyer must initial the date.

 

The Buyer hereby warrants that the Buyer is not a party to a buyer representation agreement with any other registered real estate brokerage for the purchase or lease of a real property of the general description indicated above.”

 

 

This is a warranty. The Buyer is saying that there is no agency appointment or representation agreement in force. That document would preclude this level of service agreement. A consumer could sign many customer service agreements with different Brokerages, all covering the same matters.

 

 

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: buyer customer service agreement code of ethics rebba not agent 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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