What is a buyer representation agreement?

When you are buying a home in Ottawa, you and your agent will be going through a TON of paperwork.

Each form has 10s to even 100s of tiny notes and subsections - it can get confusing! In our new series, we are going to be going through some of the most common forms used in the Ottawa Real Estate world.

Today we’re covering Form 300 in OREA forms - The Buyer Representation Agreement.

This agreement is a contract between a buyer and real estate company that allows real estate companies permission to act on a buyer’s behalf to purchase a property. 

The first section of this agreement identifies who is involved in this transaction - aka the buyer and the real estate brokerage. Next, you’ll agree on the area you are interested in buying a property in. Then, the buyer must agree that they have not already signed this contract with another brokerage. 

From here, the form breaks down a variety of definitions that are relevant to the buyer and real estate brokerage about terms of sale. 

Then, there is a section for commission. This details how much the brokerage is taking from the sale in order to pay for their work. 

The representation section confirms that the salesperson and/or their brokerage have explained all aspects of the real estate relationship and transaction so that they buyer is well informed. 

The referral of properties section explains that the buyer is committing to work with that brokerage, and should mention any properties they find that catch their attention. The buyer is still responsible for paying commission even if they decide to put their own offer in on another property, while they are working with that agent. 

The indemnification section releases the salesperson and brokerage from having to be qualified to determine the physical condition of the property. 

The finders fee section acknowledges that brokerages receive a finders fee, reward, or referral incentive and the buyer is okay with them receiving this and aware of it. 

Consumer reports notes that buyers may have a credit or personal information report taken. 

Use and distribution notes that salespeople can use a buyer’s personal information. 

Conflict or discrepancy states that if something is added to the agreement then those provisions override what is currently in this form. 

Successors and assigns allows heirs or executors into the agreement. 

Electronic communication states that the agreement can be used electronically and still be binding.