Understanding Buyer's Agency

PART 1 – The What

As a home buyer, what can an agent do for me?

A buyer’s agent is experienced in helping you, whether you are a first time buyer or you are on your fifth home. Your agent can help you decide your needs and budget if you are not already clear. Your agent can also help you find properties to view. Knowledge is key in finding the right property for you, and your agent can help you stay well informed about the home and the community. The agent can also guide you towards finance, inspections and other arrangements.

Your Buyer's Agent Works For You

Your buyer's agent has certain obligations, or fiduciary duties that they must fulfill to you, the client:
- Loyalty: The agent must protect your negotiating position at all times and work in your best interest
- Obedience: The agent must carry out all of your lawful instructions.
- Confidentiality: The agent has an obligation to keep information confidential.
- Reasonable care & skill must be exercised in performing all duties.
- Full disclosure of all relevant information that is known by the agent and that may influence your decision or affect the value of the property.
- Full accounting of all money and property placed in the buyer's agent hands while acting on your behalf.

PART 2 – The How

What is a “BBC” About?
The Buyer Brokerage Contract (BBC) is the agreement that establishes your relationship with your agent. It specifies what the duties of the buyer and seller are. The agent is agreeing to guide you through the process and as a buyer you are agreeing to exclusive use of the agent.

The agency disclosure section authorizes the agent to act as a dual agent (a case where an agent works for both you and the seller) and outlines the duties the agent owes to you in a dual agency situation and how your interests are protected.

PART 3 – The What If

What happens if I sign a Buyer Brokerage Contract and then find a home listed through another agent?

Any time you find a property you'd like to view, contact your buyer's agent. The buyer's agent will contact the seller's agent to arrange a showing.

What if I decide to buy a home directly from a builder?

With a buyer agency relationship, there is no obligation to purchase a resale home. Tell your agent you'd like to look at a new property. Your buyer's agent will help you navigate through all the information on new homes and neighborhoods. More importantly, your buyer's agent acts for you and represents your interests when negotiating with a builder. Your agent can help you work with the builder from the planning stage, or help you finalize details for your new home. Your buyer's agent can also assist you through other unique issues that new homes present such as warranties, GST, builder's liens or encumbrances. Buyer's agents also have access to standard contracts and schedules that protect you, the consumer, when buying your new home. Commission is paid per the terms of your Buyer Brokerage Contract.

What if I look at open houses without my buyer's agent present?

Some are ok, some are not. You can view other agent’s open houses without your buyer's agent but as a courtesy you should inform the agent at the open house that you are already represented. If you want to see the property again, your buyer's agent will make arrangements for a showing.

New home builder’s show homes are another story. The builder’s rep will try their best to get your name. Once they register your name, you will not be allowed to work with that builder with your agent. Your agent should also be present when viewing for sale by owner open houses.

Now you have all the info you need to make an informed decision about your buyer’s agent.