The Real Estate Laws have changed significantly since 1995. Many long-time homeowners and most first time buyers would not be aware of the changes. The most recent changes occurred in March 2006 with what is known as the RECO 2002 update (RECO = Real Estate Council of Ontario).

For example, many home buyers believe that the Agent with whom they are working--sometimes on a daily basis--represents them and their interests.

Without certain disclosures *in writing*, this is definitely not the case.

The Agent, unless specifically disclosed otherwise *in writing*, represents the seller in any transaction for the sale of a home. It is that Agent's fiduciary duty (where their loyalty lies) to protect the Seller's position at all times.

Buyer Representation (formerly known as Buyer Agency), however, is seriously worth considering. Simply put, it allows the Agent with whom you are working to be your representative and to put your interests above all others.

Example 1: You see a house advertised in the newspaper, a home magazine, or the Internet. You contact the Listing Agent (this is who will be advertising the home) and make an appointment to see the house. The Agent is friendly, informative, and tells you what you believe to be everything about the house. The Agent represents the seller, not you.

Example 2: You are working with an Agent, who shows you 25 different homes over 3 weekends. The Agent buys you lunch twice, knows all 4 of your children by name as well as all of your personal likes and dislikes, but does not offer Buyer Representation. You feel comfortable with the Agent, revealing important personal information. Without Buyer Representation, "your" Agent represents, and owes loyalty to, each and every one of those 25 sellers--not you. Any information you reveal to the Agent *must* be relayed to the sellers (such as how high you're willing to go beyond your initial offer!!!)

"Okay," many buyers say, "so the Agent represents the seller and not me. Is that a big deal?" Maybe not, but it is important to understand that if the Agent represents the seller, they cannot reveal certain things to you, the buyer:

• The reason for selling (unless the seller specifically authorizes it)
• Any concessions, in price or otherwise, that the seller may be willing to give up.
• Any conversations that the seller and the Agent may have had.
• Any information that could be detrimental to the seller, or give you, the buyer, an advantage. This would include a CMA (Comparable Market Analysis) that could put the seller at a disadvantage.

Buyer Representation turns the tables. If a Buyer Representation agreement is struck between you and an Agent, it is you, rather than the seller, who has the representation from the Agent with whom you are working.

If you are represented by a Buyer's Agent, some of the potential benefits include:

• The Agent can develop a CMA (Comparable Market Analysis), revealing at what price similar properties in the area have been listed for and sold for.
• The Agent can reveal to you any information about the seller that the Agent has been able to ascertain. This may include reasons for selling, potential concessions, or other information that may be to your advantage.
• Information about property value trends that may influence your decision about a certain area can be relayed to you.

All that's required is for you and your agent of choice to sign a Buyer Representation Agreement which now legally binds the agent as *your* representative. It serves as written proof that your agent is working for you and can't divulge your information to the seller or their agent.

And best of all, there's no cost to you the Buyer because when you buy a home with this agent, they are still paid by the seller!

If you have any questions on Buyer Representation or the benefits to the Buyer, please call me and I'll be happy to take the time to explain them.

Steven Fundarek - 905-619-9500

The Ontario Real Estate Association and Toronto Real Estate Board have written a "plain language" version of the Buyer Representation Agreement in PDF format (I.e. You need the free Adobe Reader from Adobe . 

If you want to receive a FREE no-obligation copy of  it, just fill in the following request and I'll send it  to you.

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