Why sign a brokerage contract to purchase with a real estate broker?

Buying a home: why is it important to be accompanied by a real estate broker?

Finding the home of your dreams is not a task to be taken lightly! Because of his experience and knowledge, a real estate broker can help you considerably in your search. As a bonus, this professional gives you access to many other advantages!

Prohibition on entering into a verbal agreement

Before June 10, 2022, it was possible for a buyer to be represented by a real estate broker by entering into a simple verbal agreement with the broker. As of June 10, 2022, the buyer will have to enter into a written brokerage purchase agreement with his or her real estate broker in order to benefit from this representation.

Without a written brokerage contract, the real estate broker will not be able to represent the buyer and defend his interests. This means that the broker will not be able to :

  • advise the buyer according to his needs and criteria ;
  • Advise the buyer on the price to offer on a property;
  • present a promise to purchase on his behalf;
  • negotiate the price and conditions of the transaction for the buyer.

The broker will only be able to offer guidance. In real estate jargon, you will hear the words: "offer fair treatment to the buyer".

What is fair treatment?

When a broker finds himself in a situation where he must offer fair treatment to the buyer, he must inform the buyer objectively. In particular, he must demonstrate the accuracy of the information presented to the buyer who is not represented by a broker and he must also advise the buyer of any unfavourable elements concerning the property. However, he cannot represent the buyer or defend his interests.

Prohibition on dual representation

You have signed a purchase brokerage contract with your broker and you wish to present a promise to purchase on a property that he has the mandate to sell? In order to protect your interests as a buyer, your real estate broker must terminate the brokerage contract you signed with him, at no cost to you. He will also have to recommend that you be represented by another real estate broker in the transaction. If you choose to represent yourself, he or she must offer you fair treatment as explained above.

The advantages of the brokerage contract

  • The real estate broker's obligations are clearly defined in the contract.
  • The buyer's needs are well targeted by the broker since they are described in the contract.
  • The buyer has access to more properties since the broker can solicit owners whose property is not on the market.
  • The broker can advise the buyer according to his needs and criteria.
  • The broker can advise the buyer on the price to offer.
  • The broker can present a promise to purchase on behalf of the buyer.
  • The broker can negotiate the purchase price on behalf of the buyer and all other terms of the transaction.
  • The broker will need to protect the buyer's personal and other strategic information.

He knows the inventory of available homes

A broker is always on the lookout for new homes that are posted on sales sites. Better yet, he or she is sometimes informed even before they are posted, which allows you to be the first visitors. So he has a front row seat!

When you tell him about your needs, he already has several houses for sale in mind. However, he will also do an exhaustive search in order to show you all the properties that might interest you.

He has a large network

When you deal with a broker, you have access to his vast network of contacts in the real estate field. Whether it's a competent notary, an experienced financial advisor or a reputable building inspector, he or she will give you the benefit of all of his or her contacts, as needed. 

It takes care of the management of the visits

It may seem simple to plan visits to properties that interest you. However, it requires organization and time! By dealing with a broker, you cross this task off your list.

He is also the one who, during the visit, highlights the positive aspects of the property, as well as the more negative points. He is not at his first visit and can guide you efficiently!

He knows the legal procedures

Offers to purchase and counter-offers are legal documents that have real legal value. Signing a promise to purchase commits you to acquiring the property: it is not a trivial signature! This is why the presence of a broker who knows the procedures is reassuring.

He is comfortable asking questions

Your inexperience in real estate may be causing you to lose sight of some important aspects. A broker looks for answers to questions that deserve your attention, and leaves nothing to chance. 

It offers you protections

Signing a brokerage contract allows you to benefit from the protections offered by the Real Estate Brokerage Act. In fact, since June 10, 2022, amendments to the Act have come into effect to further protect buyers during a transaction.

At RE/MAX, you will also be covered by the Tranquilli-T program, which gives you access, among other things, to free legal assistance in case of a dispute.S

He can offer you complete support

Did you know that without the signature of a brokerage contract, a broker cannot offer you complete support? This legal document allows him to work 100% in your interest, without having to be impartial. For example :

  • He can advise you strategically on the price to offer to sellers.
  • He has the right to solicit for you owners whose homes are not on the market, giving you access to a larger pool of homes.
  • They can present a promise to purchase, negotiate price and terms on your behalf.
  • They have a duty to protect your personal and strategic information.

Buying a house is a big investment and some people choose not to sign a brokerage contract with a real estate broker. However, he is certainly an ally of choice! 

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