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 7C CUSTOMER SERVICE

April 12, 2015 - Updated: April 12, 2015

 

Buyer Representation Agreement Explained (Ontario) Part 7C CUSTOMER SERVICE

 

Here is the portion of the paragraph dealing with multiple representation and Customer Service:

 

MULTIPLE REPRESENTATION AND CUSTOMER SERVICE:

 

The Buyer understands and agrees that the Brokerage also provides representation and customer service to other buyers and sellers. If the Brokerage represents or provides customer service to more than one seller or buyer for the same trade, the Brokerage shall, in writing, at the earliest practicable opportunity and before any offer is made, inform all sellers and buyers of the nature of the Brokerage's relationship to each seller and buyer.

 

Part 7C review

 

I will break up the paragraph and offer my commentary in “italics” as usual.

 

3. REPRESENTATION:

 

MULTIPLE REPRESENTATION AND CUSTOMER SERVICE:

 

This is just the capitalized sub-title.

 

The Buyer understands and agrees that the Brokerage also provides representation and customer service to other buyers and sellers.

 

This is a statement to the effect that the Brokerage has various service arrangements with others. In some cases, it will be agency and those consumers are called CLIENTS. In other cases, it will not be agency, just short of it, and those consumers will be referred to as CUSTOMERS.

 

Buyers of sellers can both select either service level.

 

If the Brokerage represents or provides customer service to more than one seller or buyer for the same trade,

 

Previously we dealt with agency and the disclosure of two Clients, to one another. Then, we dealt with one agency agreement and one non-agency agreement and this agreement called for that disclosure as well.

 

Here, we are talking about two customers, whether they be buyers (two competing with one another for the same property), sellers (two competing with one another for the same buyers in respect to the sale of their properties), or a buyer and a seller (both of whom have selected the customer service level), ALL of course, in competition concerning the same “trade” in real estate.

 

You will appreciate that if both a seller and a buyer have selected customer service, neither have agency agreement and certainly neither would fall in under this Buyer Representation Agreement. So, why are we talking about that here? I don’t know. It’s a mystery to me.

 

the Brokerage shall, in writing, at the earliest practicable opportunity and before any offer is made,

 

The brokerage must make this disclosure and ensure that everyone knows these relationships before the Offer.

 

inform all sellers and buyers of the nature of the Brokerage's relationship to each seller and buyer.

 

There is a specific FORM for this which is the Confirmation of Representation and Co-operation.

 

You will appreciate that sometime this can be impossible. Consider a large brokerage ABC which employs over 500 agents, and a hot property going to a bidding war. The listing brokerage XYZ, hosts the presentations. There might be over 20 bids. Two sales representatives from the first brokerage could submit bids on the same property and be unknown to one another. There is no requirement that the Offers be first registered or even made known to Brokerage ABC. Who would know? And, further, this is not much of a transgression.

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: buyer representation agreement bra ontario agency explanation customer service 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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