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 Representation Agreement Explained (Ontario) Part 3 APPOINTMENT

April 7, 2015 - Updated: April 7, 2015

Buyer Representation Agreement Explained (Ontario) Part 3 APPOINTMENT

 

This is the part of the Buyer Representation Agreement dealing with the actual appointment:

 

 

The Buyer hereby gives the Brokerage the exclusive and irrevocable authority to act as the Buyer’s agent

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

and expiring 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.

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

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

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

 

 

COMMENT

 

You will notice several matters:

 

It is “exclusive”, this means quite simply that a consumer cannot appoint two agents at the same time, to do the same thing.

 

It is “irrevocable”. That means that it will continue throughout the entire currency of the agreement. No second thoughts and no termination provisions are included in the standard form.

 

There is a start date and an end date. They use the words commencing and expiring. Now, when you look at the commencing part, it is noteworthy that the “time” starts at midnight in most cases. This is not actually part of the form but a function of the software programs commonly in use.

 

If you meet someone for the first time at 9:30 am and then view a property, this agreement should begin no earlier than 9:30 am. In many cases, the software program will insert a 12:01 am start time. This clearly is not the case. Going forward, this start time could present an issue.

 

The expiry date will be a date you select for the conclusion of your arrangement.

 

The duration of the agreement could be for a few hours or a year or two. Make sure you understand and agree to the correct time period.

 

If you are seeing one property, then there’s no need for an excessive period of time. If you have now selected the person with whom you wish to deal, then give them the authority to act on your behalf.

 

Any agreement which extends beyond six months is unusual and will require the buyer’s initials. Sometimes the sales representative will insert a time period just short of this 6 month period.

 

In commercial transactions, it is not uncommon for a client to work with the same sales professional for several years locating a suitable property.

 

In summary, since there is a holdover period and the agent will be paid a commission anyways, consumers should shorten up this time period. There is absolutely nothing wrong with a 24 hour agreement.

 

So, what’s this agreement about? Look at the deal! It is an agreement between the parties to locate a property which is described in terms of its:

 

1)    Type, and

 

2)    Geographical location.

 

Type. This naturally means that you will want to be quite careful when setting the parameters of the deal. Not all agents necessarily are experienced in the same way. If you are looking for a residential property, then that should be specified. If yo u are looking for a multi-plex in the same area, perhaps you need a different agent.

 

And what about your business? Office leasing or commercial premises probably call for an agent with special expertise.

 

Geographical Location. The next step is the geographical area. Many agents stay within a relative closed geographical area. That is what they know about. That is where they work. They often don’t stray too far.

 

However, consider a buyer wishing to acquire a very upscale property in the west end of Toronto. That same purchaser might be prepared to consider Forest Hill, the Kingsway, Lorne Park, east Oakville or Burlington. There are different agents who work in each of these areas and claim to have special local knowledge and expertise. So, one consideration would be to have five separate contracts with five different agents. Another consideration would be to select one person to facilitate the transaction and co-ordinate matters in all five areas.

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


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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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