BUYER FREQUENTLY ASKED QUESTIONS

Below is a list of frequently asked questions that come up when purchasing a home.

What can an agent do for me?

Assist you with getting pre-approvals for financing so you know how much you can afford
Make you aware of any tax exemptions you might be eligible for
Gather and share information about neighbourhoods and homes that meet your requirements, and arrange to show you homes you’d like to see
Make inquiries about zoning, permitted property use, or other aspects of the home
Advise you on the best approach in competing offer situations and how to protect your offer information
Negotiate with sellers to achieve the best results, price, and terms, for you
Guide you through paperwork and closing the transaction successfully
Provide referrals to other professionals you’ll need (for example, home inspectors, lawyers, or contractors)

What are my responsibilities as a client?

• Be clear about what you want and don’t want and make sure you share all information that might be relevant (for example, you might want zoning that permits your intended use, maybe a home office or another specific use, or you might not want a property where there has been a violent crime);
• Respond to your agent’s questions quickly;
•Understand the terms of your agreement with the brokerage; and,
• Pay the fees you have agreed on, even if an agreement to buy or sell later falls through.

What are the risks of representing yourself?

There are significant risks to representing yourself in a real estate transaction if you do not have the knowledge and expertise required to navigate the transaction on your own. You will be dealing with a seller or buyer who is benefitting from the services, opinions, and advice of an experienced real estate agent.

RECO (Real Estate Council of Ontario) recommends that you seek independent professional advice before you proceed as a self-represented party.
If you choose not to work with a real estate agent, it will be your responsibility to look after your own best interests and protect yourself. This may include things like:
• Making inquiries about zoning, permitted property use, or any other aspect of the property;
• Determining what you believe to be the value of the property you are buying or selling;
• Determining how much you are willing to offer or accept;
• Navigating competing offer situations;
• Deciding what terms you want to include in an offer or agreement of purchase and sale; and,
• Preparing all documents.

What should I look for in a representation agreement?
Your representation agreement should describe the duties owed to you, the services you will receive, your rights and responsibilities, what you will pay, and specific terms of the agreement, including how long the agreement will last and whether you can cancel it.
What is a holdover clause?

Most representation agreements include what is often called a holdover clause. The clause may require you to pay the brokerage fees for a purchase or sale even when the transaction happens after your representation agreement expires. The clause will specify the time the holdover clause is in effect from the date the agreement expires.

A holdover clause is designed to protect the brokerage, and there is no minimum or set time for a holdover period. If your agreement includes a holdover clause, make sure you agree to the length of the holdover period before you sign it.

For example, let’s say you are a seller, and your agreement includes a 60-day holdover clause. This means that even if your agreement has expired, under certain conditions, you might be obligated to pay the brokerage commission if you sell your home during the 60-day holdover period.

Similarly, assume you enter into a buyer agreement that includes a 60-day holdover clause and the agent shows you a home before the expiry of the contract. If you buy the home after the expiry of the agreement, but during the holdover period, you might be obligated to pay the brokerage commission.

How can I file a complaint about a brokerage firm or real estate agent?

Brokerage firms and real estate agents working in Ontario must be registered with RECO (Real Estate Council of Ontario). Ontario brokerages and real estate agents are accountable for their conduct. If you have a concern:

In many cases, your brokerage will be able to mediate or resolve your complaint about a real estate agent or the services provided under your representation agreement. Search for the brokerage in RECO’s Public Register to find the name of the broker of record (the person responsible for ensuring the brokerage complies with the law) and their contact information. Note that the brokerage cannot ask you to sign an agreement that requires you to withdraw a complaint to RECO or prevents you from making one.

To file a complaint with RECO about a brokerage or real estate agent, visit the complaints section of the RECO website. The website explains the complaints process, possible outcomes, and how to file your complaint. RECO will review the issue, determine if it has the authority to deal with it, and what next steps, if any, it will take.

Real Estate Council of Ontario – 3300 Bloor Street West
Suite 1400, West Tower Toronto, ON Canada M8X 2X2
Phone: 416-207-4800
Toll Free: 1-800-245-6910
Consumer inquiries: information@reco.on.ca
www.reco.on.ca

INTERESTED IN BUYING OR SELLING REAL ESTATE IN LONDON OR ITS SURROUNDING AREAS? THE MYLIE GROUP REAL ESTATE TEAM OFFERS EXPERT GUIDANCE AND COMPREHENSIVE SERVICES TO MEET YOUR NEEDS.