Seek representation by a real estate broker or not

Buying a home Is one of the most important transactions in a person’s life. Among the many questions to ask and decisions to make, determining the method of proceeding is one of the first things to done by the buyer.

When it comes to buying a property, here are the options available to the buyer:

• Seek representation by his own real estate broker by signing a brokerage contract to purchase
• Do business with the seller's broker and be treated fairly (the buyer is not represented in this case)
• Deal with a collaborating real estate broker without a signed brokerage contract to purchase and be treated fairly (again the buyer is not represented in this case)

Seek representation by his own broker WITH A BROKERAGE CONTRACT TO PURCHASE.

In this context, the real estate broker can:

• Protect, defend and promote the buyer's interests
• Advise the buyer based on his needs and criteria on the price, the comparable homes sold, the conditions and the drafting of clauses
• Assist the buyer during building inspection
• Present and negotiate the terms of a promise to purchase on behalf of the buyer to obtain a lower price or better terms based on the buyer's criteria
• Protect the buyer’s personal and other strategic information

OR

Deal with the seller's broker or a collaborating broker WITHOUT A BROKERAGE CONTRACT and be treated fairly

In a nutshell, fair treatment = no written brokerage contract = no representation = no advice based on the buyer's needs and criteria

In this context, the real estate broker's role is more limited:

• He cannot advise the buyer on the price, the comparable homes sold, the conditions, and the drafting of the clauses in the promise to purchase, except for the usual inspection and financing clauses 
• He cannot negotiate on behalf of the buyer to obtain a lower price, or better terms based on the buyer's criteria
• However, he may show the property to buyers
• He must objectively inform the unrepresented buyer of all factors that may adversely affect the transaction

Whether or not a brokerage contract to purchase is signed, if the buyer decides to enlist the services of a real estate broker, he will be dealing with an intermediary who is duly authorized and supervised by the OACIQ. Under its public protection mission, the OACIQ enforces the Real Estate Brokerage Act, which regulates real estate brokerage activities and provides protection mechanisms during a real estate transaction carried out through a real estate broker.

Before embarking on this adventure, take a look at the “Check a broker’s record” section to see if the real estate broker holds a valid licence or has ever been the subject of a disciplinary decision or a licence suspension notice.

For any questions about a real estate transaction involving a real estate broker, contact the Info OACIQ agents who contribute their knowledge to the protection of the public.