Buyer representation agreement becoming mandatory July 1st

[mazdavirgin]

“Effective July 1, 2014, Real Estate Council of Alberta (RECA) will require industry members who establish a client relationship when trading in residential real estate, property management or when dealing in mortgages to enter into a written service agreement with that client”


Example contract: http://www.reca.ca/industry/forms/PDF/Exclusive-Buyer-Representation-Agreement-Feb-3.pdf

So any bets on how it will be before someone gets burned bad by one of these things? Read through the forms and there are some nasty surprises waiting for people in there... Mostly it reads somewhat like a fitness gym contract with all sorts of fun gotcha's and penalties. Pretty all around shaddy move.

[lasimmon]

Real estate agents? Shady? You don't say..

[Brent.ff]

Some beauts:

"You must pay us even if you don’t complete the purchase, unless you have a legal reason for not completing it. "


"If you change your mind about looking for a property, you must tell us in writing. You must reimburse us for our reasonable expenses up to the time you tell us. "


Are people actually paying for a realtor, other then the commission? Curious how many of the good realtors will actually put a dollar amount on these.... Think you'd see a lot of people stop dealing with realtors if you're getting charged on top of the commission.

[LOLzilla]

The ship has holes and they are attempting to patch it. Not a big surprise. :rofl:

[Weapon_R]

Strike out the terms that you don't agree with prior to signing the contract. If a realtor doesn't agree, find a new realtor.

Otherwise, good luck when you decide to remove your listing and you get a bill for "reasonable expenses." I've seen a realtor try and pass off a $3500 bill for expenses.

[rage2]

Originally posted by Brent.ff
Some beauts:

"You must pay us even if you don’t complete the purchase, unless you have a legal reason for not completing it. "


"If you change your mind about looking for a property, you must tell us in writing. You must reimburse us for our reasonable expenses up to the time you tell us. "


Are people actually paying for a realtor, other then the commission? Curious how many of the good realtors will actually put a dollar amount on these.... Think you'd see a lot of people stop dealing with realtors if you're getting charged on top of the commission.
I thought that was your Coles Notes. Can't believe that's the wording they used.

[blitz]

I love this one:

"7.8 If you change your mind about looking for a property, you must tell us in writing. You must reimburse us for our reasonable expenses up to the time you tell us. "

So if you change your mind about buying, it's better to run out the contract wasting their time letting them show you properties instead of just ending the contract.

[Xtrema]

I see what they are trying to push. Buying agents can waste many upon many hrs serving a client with nothing to show for it. Some are just picky clients and others just lost out on bidding wars.

It's counter productive as they want you to use their service but keep making access worse.

[cam_wmh]

If an agent ever pushed something like this, they'd push me out the door to a new agent.

I had a mediocre -- er sub-par Realtor myself. Kinda wish she had done this, as I have a Realtor friend that would've been better to give the work to.
She wasn't even above average in simple administration.
(faxing documents was a challenge & her mortgage broker was incompetent)

I found the condo, I reviewed the condo docs (inc: using a condo doc review company), and did the other above & beyond diligence. (met owners, board member, toured the whole complex).

There really needs to be a "rate your realtor" site, similar to "rate your doctor".

/rant

[Tik-Tok]

Originally posted by Xtrema
I see what they are trying to push. Buying agents can waste many upon many hrs serving a client with nothing to show for it. Some are just picky clients and others just lost out on bidding wars.

It's counter productive as they want you to use their service but keep making access worse.

:werd:

This is the sort of thing that should have been in place 20+ years ago. Now with all the internet access to listings, anyone who is on the fence about actually using a realtor, is never going to use one.

I wouldn't have any problems signing this, so long as the contract duration is reasonable for the market conditions (ie 1 month right now, but 3+ months if the market was slow)

[Xtrema]

Originally posted by blitz
I love this one:

"7.8 If you change your mind about looking for a property, you must tell us in writing. You must reimburse us for our reasonable expenses up to the time you tell us. "

So if you change your mind about buying, it's better to run out the contract wasting their time letting them show you properties instead of just ending the contract.

I really doubt any realtors will write in any fees unless the bigger brokages start charging.

In the end, this is for helping noob or part time realtors.

[Inzane]

Everyone wants their cake and to eat it too.

I haven't had to use a realtor very often but when i did I only remember paying commission.

Now we're expected to pay for their gas, etc. to show us around looking at properties... :dunno:

Following July 1st, perhaps Revenue Canada should take a closer look at realtor tax returns to see what they're claiming for expenses.

[FraserB]

I thought the buyer typically didn't pay any realtor fees and it was handled by the seller?

[max_boost]

Slippery slope? Does a realtor keep track on average how many properties they show before their client buys? When I bought my current place in Crescent I looked at maybe 5-6 homes. I searched on MLS and just called up my agent on what I wanted to check out. I know some friends who looked at anywhere from 50-100 homes. It was mind boggling to me but making a purchase of that magnitude you want to get it right. I always figured it was just a cost of doing business from the buying side. There must be some angry realtors out there? haha

[RedDawn]

Originally posted by Xtrema
I see what they are trying to push. Buying agents can waste many upon many hrs serving a client with nothing to show for it. Some are just picky clients and others just lost out on bidding wars.

It's counter productive as they want you to use their service but keep making access worse.

Yeah, but the "my clients could waste hours of my time while they're looking with nothing to show for it" was the excuse that they used to justify making ~$10,000 when a deal finally goes through - the one deal that goes through pays for all my failed ones.

This new agreement buries that argument. It'll be funny to see the next excuse these con artists use to justify their high fees. :rofl:

[unclerj]

I don't think this is too big of an issue unless the fees that are written in are ridiculous. I suspect that most realtors are going to waive them.

Also, I think the following clause is really to protect the realtor from having clients go directly to the buyer on a property that the realtor showed the prospective purchaser:

7.3 You must pay our fee if:
(b) in the _____ days after this agreement ends, you enter into a legally binding contract to buy a property we introduced to you
during the term of this agreement. You must pay us even if you don’t complete the purchase, unless you have a legal reason for not
completing it.

I have no issue with that one. Either use a realtor or do the work yourself. But don't waste someone's time and then dick them around on the commission. If you don't want to pay them, don't hire them in the first place.

[Env-Consultant]

Originally posted by cam_wmh
There really needs to be a rate your realtor site, similar to rate your doctor.

http://www.rate-my-agent.com/

[mr2mike]

Originally posted by Env-Consultant


http://www.rate-my-agent.com/

You and cam_wmh pay Rage2 for sponsorship account? :rofl:

[project240]

Originally posted by max_boost
I know some friends who looked at anywhere from 50-100 homes. It was mind boggling to me but making a purchase of that magnitude you want to get it right.

Ding ding ding.

You probably don't see this very much in a sellers market like Calgary, but I know it happens a lot in some markets like the one I'm in. Some clients "waste" days upon days upon days looking at places and then never buy. Fuel and meals with these clients does add up... Especially if you happen to be "lucky" enough to get a couple clients like this at once. A realtor can easily spend 2 months plus several thousand dollars in expenses.

And sure, if you are selling 1million$+ properties then 1 sale makes up for most of it, but when you're showing sub $300k properties, your commission after everything is maybe $2500.

[Xtrema]

Originally posted by RedDawn


Yeah, but the "my clients could waste hours of my time while they're looking with nothing to show for it" was the excuse that they used to justify making ~$10,000 when a deal finally goes through - the one deal that goes through pays for all my failed ones.

This new agreement buries that argument. It'll be funny to see the next excuse these con artists use to justify their high fees. :rofl:

Need some insider insight. Are all these 2% reality and fixed fee MLS posting and Comfree set up changing the landscape and putting the pressure on where they have to switch to buyer pays instead of seller pays?

As with any industry and any jobs, a lot of agents are underpaid and a lot are overpaid. And there are a lot of difficult customers as well and will do anything to screw you over.

I have many friends and acquaintances in the game. Not everyone make it big like Jordan. And if your customer base revolves around Asian/South Asian community, it's even tougher.

I think we are all just jealous at seeing how little work realtors do for their commission but forget that not every single one has steady income unless they have steady flow of sellers coming to them. Representing buyers in general sucks.

[mr2mike]

If you talk to a good agent, they're working around the clock.
Taking calls and making deals after hours while most people in other jobs would be winding down.

Talking calls while out for dinner with the family, out at a party's and events. Its all in how much you really love your job and want to work.

[TomcoPDR]

Imagine if they implement this in the dating world. Don't close a deal? You get ur fees, time, expenses reimbursed from the person wasting ur time.

[Buster]

bump.

Going through the process for the first time since the new "mandatory" regulations came into place.

What a gong show.

I'm basically refusing to sign it.

It even has us sign off on our privacy rights.

Realtors are trash.

EDIT: ^^^^ Ignore my rather odious generalization. I was a little hot.

[rage2]

You know, there's a guy on here, his name is Jordan. I'm pretty sure he's a realtor, and from reading reviews from beyonders, he's not trash.

Why don't you try giving him a call and stop wasting your own time?

[FraserB]

Talk with Jordan. I never signed one of these when I was working with him.

[gwill]

Realtors contracts aren't meant to protect the consumer they are only there to protect the realtors. I've been toying with the idea of posting my results from a law suit I filed against a realtor, it's brokerage, and an appraiser and its brokerage.

They can get away with a lot even when there is negligence involved all thanks to their paperwork.

My recommendations for anyone who buys is to make the mls listing a part of the agreement when you go to buy. Make the realtor and owner responsible for what they advertise.

[Buster]

Originally posted by rage2
You know, there's a guy on here, his name is Jordan. I'm pretty sure he's a realtor, and from reading reviews from beyonders, he's not trash.

Why don't you try giving him a call and stop wasting your own time?

I was pissed when I wrote that.

I think I will call Jordan.

[Buster]

Originally posted by gwill
Realtors contracts aren't meant to protect the consumer they are only there to protect the realtors. I've been toying with the idea of posting my results from a law suit I filed against a realtor, it's brokerage, and an appraiser and its brokerage.

They can get away with a lot even when there is negligence involved all thanks to their paperwork.

My recommendations for anyone who buys is to make the mls listing a part of the agreement when you go to buy. Make the realtor and owner responsible for what they advertise.

This particular realtor is prominent in my area. I found a house I wanted to deal on, went to see it a few times at open houses, etc. Did all my own due diligence, to the extent that I could.

Called up the realtor, and told him I wanted to give him a listing for my house, and oh by the way, did he want to write up the offer for the house I found. We've spoken on and off about it over a few months, but he's never been involved in any capacity for a search or any of the usual "buyer realtor" efforts.

And then as we are putting an offer in, he introduces a ridiculous exclusive BRA, with a 3 month term, and 3 month holdover. Tons of crazy terms where I have reimburse him for costs, and have to pay his fees if a seller renegs or doesn't offer the full 1.5%. He refused to move to a non-exclusive or to modify the agreement. We literally had the offer ready to go, and he won't submit it.

So he's giving up on a potential paycheck on the buy side, and my listing, all because he thinks he deserves to have me locked into him, after I brought him the purchase deal on a platter.

Ridiculous.

[speedog]

Originally posted by Buster
bump.

Going through the process for the first time since the new "mandatory" regulations came into place.

What a gong show.

I'm basically refusing to sign it.

It even has us sign off on our privacy rights.

Realtors are trash.
That's a pretty broad paintbrush you're using there, would be an offence to my Dad who's been in the commercial side of things for about 30 years.

[89coupe]

I have all my clients sign an exclusive representation agreement. But I never charge them a dime.

My payday comes when I sell them their home, or represent them in a purchase of a home.

Any other costs I take on myself, if the deal goes south well I swallow the costs and move on.

Not all Realtors are bad, many are doing their best to represent you in the best way possible and to help you get the best deal possible.

[JordanLotoski]

Originally posted by FraserB
Talk with Jordan. I never signed one of these when I was working with him.



You sure did:nut:

I actually have all my buyers sign it at the time of writing an offer. It is mandatory, but I feel like if I Cannot keep my buyers happy and well serviced they can move on. It's yet to happen.

Once my buyers find a home they want to write on the buyers agreement is signed. The commission always stated "paid only by sellers" so my buyers know they at any point are not on the hook for any money.

Hope your loving the new home Fraser.

[Buster]

Originally posted by speedog

That's a pretty broad paintbrush you're using there, would be an offence to my Dad who's been in the commercial side of things for about 30 years.

I edited my post to reflect a mea culpa.

[Buster]

Originally posted by JordanLotoski




You sure did:nut:

I actually have all my buyers sign it at the time of writing an offer. It is mandatory, but I feel like if I Cannot keep my buyers happy and well serviced they can move on. It's yet to happen.

Once my buyers find a home they want to write on the buyers agreement is signed. The commission always stated "paid only by sellers" so my buyers know they at any point are not on the hook for any money.

Hope your loving the new home Fraser.

I don't think I would, in practice, be opposed to signing one, if the intent was to protect the agent from an unscrupulous buyer trying to end-around a commission. So, like any agreement, the devil is in the details.

In this particular case, I brought the listing to the realtor, and expressed no intention of engaging him in a broad search for our new dream home. I didn't really even need him to go see the house. I was more interested in his listing services, and was throwing him a bone on the write-up of the purchase deal.

In those circumstances, I felt it inappropriate to have a broad agreement:

- 6 months duration including holdover
- a "make whole" clause in in case the seller's agent doesn't pay the full 1.5%
- a bunch of loose clauses in terms of reimbursing on costs

etc etc, you get the idea.

I was a bit incredulous when we spoke, given the original nature of the deal.

For the record, I offered a number of different variations which would protect him from me trying to do something dubious with this deal...but his requested exclusivity agreement stretched far, far past the nature of this individual transaction.

[FraserB]

Originally posted by JordanLotoski




You sure did:nut:

I actually have all my buyers sign it at the time of writing an offer. It is mandatory, but I feel like if I Cannot keep my buyers happy and well serviced they can move on. It's yet to happen.

Once my buyers find a home they want to write on the buyers agreement is signed. The commission always stated "paid only by sellers" so my buyers know they at any point are not on the hook for any money.

Hope your loving the new home Fraser.

Ha-ha, must have forgotten about it. New home is great thanks:D

[Buster]

I had a rather refreshing conversation with Jordan.