Why does Muskoka Estates recommend BRA’s?
A Buyer’s Representation Agreement (BRA) is a contract outlining the ground rules of the relationship between the real estate agent and a prospective buyer. A BRA will typically commit a prospective buyer to working exclusively with a brokerage for a set period of time.
BRAs Ultimately protect and benefit both parties.
How BRAs benefit buyers
Many don’t realize that without a BRA, an agent is by default working on behalf of the listing broker. This means that the seller’s interests automatically come before an unprotected prospective buyer’s. Anything a prospective buyer says to an un-contracted realtor may be passed along to the seller. However with a BRA, the buyer is legally designated as a “client” whose goals an agent is obligated to prioritize.
How BRAs benefit realtors
BRA’s protects the realtor, ensuring they receive a commission for their work if a buyer makes a real estate purchase. With a BRA in effect, a buyer can’t use the realtor’s services and then avoid paying commissions.
BRA Myths
Myth: When a prospective buyer contacts a realtor, without a BRA, the buyer’s interests automatically come first.
Fact: Without a BRA, the prospective buyers’ interests are neither protected nor prioritized. However with a BRA in place, they are.
Myth: Listing information is widely available and BRAs don’t offer any advantage.
Fact: Generally speaking the most desirable properties end up in the hands of those who learn about them and act first. Realtors often hear of listings before they are made public. When they do, their first call will be to their clients rather than to a prospective buyer with whom they have no written agreement. Finding the perfect property for their clients is always an agent’s top priority.
Myth: All BRAs commit prospective buyers to exclusivity to one realtor for a long period of time.
Fact: The agent and the buyer set and agree upon the terms of the BRA.
- The contract can be for any length of time.
- The contract can specify one lake, town, or general area.
- The contract can even specifically focus on one particular property.
While BRAs are mandatory in some Canadian provinces, in Ontario they are not. However, the Muskoka Estates Team believes that BRAs eliminate uncertainty and ensure that everyone’s rights are protected.
Ask yourself
- Do I want an advocate representing me rather than the seller?
- Do I want the peace of mind of knowing that my realtor is legally obligated to protect my interests?
- Do I want to be taken seriously as a buyer?
- Do I want to receive the level of service that I expect and deserve?
- Do I want an experienced specialist on my side?
Here’s what TRESA has to say about BRA’s.
