Over the last couple of weeks I have received calls from a couple of our agents about buyers that have approached them to purchase properties they had personally listed for sale. You would assume that this is great and 99.9% of the time, it usually is. Even though they pre-approved and covered all the bases, unexpectedly, just after closing they were notified by another agent that these Buyer clients had also signed a Buyer Representation Agreement with this other Realtor as well. They followed up and the buyers claim that they didn’t understand what they were signing and or don’t remember signing anything like this.
My concerns are as follows:
- Do Buyer Clients understand the benefits of Buyer Agency and how it’s main purpose is to protect their best interests and negotiate the best terms and price?
- Do Buyer Clients understand that by signing this form, they have to be 100% loyal to their agent for the term of the agreement
- Do Buyer Clients understand that these are mandatory forms that our governing bodies require us to have signed?
- If clients are signing more than one Buyer Representation Agreement with different agents, do they understand the implications of potentially being responsible for 2 commissions? Are agents explaining this to them?
- Are agents registering their Buyer Representation Agreements on the Buyer Registry System (BRS) on TorontoMLS?
This brings me to The Buyer Registry System and it will work if we apply it. Once a Buyer Representation Agreement is signed, it is advised that you register the buyer in the system. Just as importantly, before working with a buyer client, Realtors should cross reference the client with the BRS system to make sure that they are not interfering and or wasting their time with another agents client. This is actually a great system that mirrors our present Multiple Listing Service (MLS). You only see one For Sale sign on the front lawn and only one Brokerage may list a property for sale on the MLS. Why should it be any different for Buyer Clients?
Let’s help each other by leading by example. It’s time we continously educate the public on how the real estate business works as well as explaining the benefits and advantages of Buyer Representation.
RE/MAX Ultimate Realty Inc., Brokerage