Dear Big Tuna

Dear Big Tuna: A friend of mine is looking to buy and he had to sign a buyer representation agreement before the agent would show him anything. Why would he have to do this? If you could clarify this, it would be appreciated. Thanks in advance, Tim.

Hi Tim! First of all, you never HAVE to sign anything! Now that we have that out of the way…

A Buyer Representation Agreement or BRA is a document that is a clear and concise agreement that protects the Consumer and Realtor. Many clients are apprehensive to sign a BRA as they are often viewed as the same type of contract as cell phone or cable contracts. These types of contracts are often intimidating to read and many people prefer not to enter into any additional contracts, especially if they are early in the buying process.

However, as a Realtor, it is my job to explain how a BRA protects both the client and myself. When your friend was shown a BRA, it should have been discussed with him that you get to choose the duration of the contract, the type of homes that qualify and the areas in which it would apply. For example: 90-day duration for a Single Family home/condo in Aurora and Newmarket. Everything is in writing so there are no misunderstandings.

How does it protect Realtors? Well it ensures we are compensated for our hard work.

As you may know, Realtors put in countless hours of unpaid work with no certainty on when or if we may have a listing or purchase. A BRA is an agreement that offers some protection to the agent that efforts will be compensated should there be a successful purchase. A very important section that you will want to pay attention to is the “carry over clause.” This clause, added by the agent, specifies the timeframe that he or she will be compensated should you buy a home that they showed under contract after the contract expires. In short, if you buy a home they showed you during that period by yourself or another agent, the agent you signed the BRA with could be entitled to a portion of the commissions owed. Not unlike a short term employment contract that clearly outlines what is expected of an employee to get paid. A BRA is our employment agreement with you, our boss!

A BRA is nothing to be worried about. It should actually provide some clarity and comfort. Also, if at anytime you are unhappy with your service, it is your right to cancel the contract.

Who is Big Tuna, The Renovating Realtor?
Julien Laurion AKA Big Tuna, is a local Real Estate Sale Representative with 
RE/MAX Hallmark York Group Realty in Aurora. 
I am a real estate agent who has expertise in both Real Estate and Renovations and have been 
involved in this community for over 20 years. 
If you have a question for my monthly article or if you are considering buying, selling or leasing a home please feel free to call or email me directly at (416) 402-5530 or julien@bigtuna.ca or by alternatively by visiting my website www.bigtuna.ca or Facebook page @bigtunarealty