In Ontario, prior to 1996, the "policy of agency" (who an agent represents) was that both the listing agent and the selling agent represented the seller (who paid the commission). Today, the listing agent represents the seller, and the buyer's agent represents the buyer. Buyers have a choice! Sellers generally still pay the commission and it is paid to the brokerage of the listing agent. That brokerage in turn pays half of the received commission to the brokerage of the Buyer's agent. The individual agent is then paid on whatever level has been agreed upon in their office contract.
Agents can elect to represent either seller or buyer, or both if the situation arises wherein the listing is one that is listed by the buyer's agent's office. That's called a dual agency. In such a case, the agent pledges fairness and honesty.
Benefit to the Buyer:
Total commitment to the Buyer
Maximum effort on their behalf
Exposure to the entire market
Confidentiality
Disclosure and loyalty
Track record of successful negotiations
Privacy for the Buyer
Strongest possible protection of the Buyer's interests.
Mortgage financing assistance
Buyers will save money. I will be protecting their interests.
Benefit to me as their agent:
Buyer loyalty
More qualified Buyer
More educated (to the marketplace) Buyer
Ability to offer more services
Will the Buyer need to sign an agreement?
Yes, for a specific period of time. I extend much effort, time, expertise, loyalty and education to be singularly informed on behalf of my buyers.
When appointments to view properties are made, I must disclose for whom I am representing.
What about new homes and new condos?
Yes, I represent the Buyer as well. I include new homes and condos in my showings of homes. Unlike some areas of the country where builders do not cooperate with realtors, builders seek our assistance since we sell most of their product.
The site salesperson represents the builder, so a Buyer should have representation.
The policy in Toronto is to have the realtor present when viewing the new homes or condo. It is tempting when you see a sales office to go in. In order to have Buyer representation, nothing must be registered or signed without your realtor. If you are just looking, say so, and you may not be asked to register yourself. If asked, state that you are working with a realtor and will return with that realtor if interested in that project.
In the case of new homes, understand that the builder’s advertising may state a price, i.e.starting in the $140s.This price may have been put up at the beginning of the project launch and has appreciated since then. There are many options, and upgrades that are in the model suite, and/or a premium for a specific lot for a house. The price goes up quickly from there.
