Buyer Representation Agreement Explained (Ontario) Part 4 Representation
The following representation is the next provision which appears in the agreement. It is in BOLD typeface to indicate its importance:
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 seems like a simple statement but it’s not. The buyer is confirming that there are no other contracts which will conflict with this one. The statement is expressed as a “warranty”. It is not a condition. It doesn’t not prevent the entry into the agreement in the first place. If there is a breach, there will be damages.
The reference is “other real estate brokerage”. Naturally, that leaves out the existing brokerage, meaning naturally, that two sales professionals from one particular brokerage would not be covered by this disclaimer. If you are a real estate sales professional with a large brokerage which dominates your area, then you will probably wish to make further inquiries.
The transaction can be one of purchase or lease. There’s a considerable difference there. You may have initially sought the assistance of person to help with a rental but now you may find that you are “locked” into the same person for a purchase. The six month rental may have involved $2,000.00 per month, but a one million dollar purchase is quite something else.
When it comes to the description, we are talking both about “type and “geographical location”.
Brian Madigan LL.B., Broker