If the seller recommends a price higher than the prevailing market prices of the property, the broker can negotiate with the seller to reduce the price to attract more buyers. If the seller refuses to reduce the list price, the broker can withdraw from the agreement. In the case of multiple representation, i.e. the buyer has signed an ARB, the broker will not reveal that the buyer can or will pay more than the price offered, unless the buyer has written another order. The broker must not disclose the motivation or personal information about the buyer. The broker will not disclose the price that the buyer must offer. If the buyer had not signed bra, all this information can be passed on to the sellers. Content of agreements In order to safeguard the interests of all parties concerned, agreements must be in writing. Indeed, the Code of Ethics of the Real Estate and Business Brokers Act 2002 contains a number of provisions relating specifically to agreements. If you decide not to sign an agreement, the broker is always responsible for sketching out the services provided to you by the broker. If the seller does not conclude the transaction after the broker has fulfilled the above conditions, the seller is obliged to pay the broker, because he has performed the functions assigned to him. However, the terms of the agreement can vary greatly depending on what both parties had agreed in their original agreement.
It`s fair to tell a buyer that their broker needs to show them the property, but if the property they want to see is your listing and they don`t actually have a written agreement with another broker, your fiduciary duty to your seller to market and promote their property is delayed and maybe even compromised, while making sure to first collect a client who naturally brings you into a conflict of interest. This agreement can be exclusive (you owe the agent a commission for each house within the agreed timeframe) OR not exclusive (you only pay the agent for the houses he shows). According to the Ontario Real Estate Business Brokers Act, 2002, “If a broker enters into a buyer representation contract with a buyer and the contract is not in writing, before the buyer makes an offer, the broker must reduce the contract in writing, have it signed on behalf of the broker and file it for signature.” A buyer representation agreement is a contract that the buyer and the agent sign and that makes the business relationship essentially formal. .
