TINA GLASIER
CONTACT INFORMATION
HomeLife Benchmark Realty

Phone -
604-512-3333


         
"Working with a Real Estate Agent"

Buyers and sellers will be presented with this brochure at the earliest contact with a real estate agent. Industry regulations have now made it mandatory for agents to explain at the beginning of the client relationship the options of agency representation you have, and to disclose the capacity in which the agent will be working with you: i.e. as a buyer's agent, a seller's agent, or as a dual agent. The agent will then ask you to sign a statement acknowledging that this disclosure of agency representation has taken place. He or she will keep the signed statement and give you the brochure for future reference.

Signing the disclosure statement in the Working with a Real Estate Agent brochure does not bind you to any obligation to that real estate agent. It merely confirms that you have discussed your agency representation options with the agent. You will have a contractual arrangement with your agent when you sign the listing agreement (as a seller) or the exclusive buyers' agency agreement (as a buyer).

LISTING RELATED DOCUMENTS

MLS Listing Contract

The Multiple Listing Service Listing Contract outlines the terms of the listing contract, including the length of time for the listing, the price, the commission to be paid, all the parties to the listing, the address and the legal description of the property to be sold, how the seller is to be paid, the preferred possession date, the financial obligations, and other information regarding the property.

The listing agreement is the seller's agreement with the listing agency, not the salesperson individually. If the salesperson leaves that company, it is up to the seller and the listing company to decide whether or not the listing will go with the salesperson, or whether it will stay with the original company and be assigned to another salesperson.

The standard MLS Listing Contract explains that the seller is liable to pay a commission if the listing agent or a cooperating agent brings an offer which meets all of the stated terms and conditions of the seller. Even if the seller introduced (during the listing period) the person who eventually buys the property, a commission is owed to the listing agency.

As with other services, there is GST (but not yet PST) payable on commission, so when you are calculating your proceeds, take that into consideration.

Data Input Form

The Data Input Form is the sheet the Realtor fills out with all of the information and comments about the property.

Exclusive Listing Contract

The Exclusive Listing Contract is used when a property is not going to be on the Multiple Listing Service and is publicized by methods such as advertising and For Sale sign.

At times, the seller will prefer an exclusive listing for the belief that there will be fewer "lookers," rather than buyers. Actually that is not the case. An exclusive listing is often overlooked by Realtors working with buyers, because the first place they look is in the MLS on the computer. The more people who know about a property, the greater the chance of a larger number of serious buyers viewing the property and making offers until the acceptable price and terms are reached.

Listing Amendment

A Listing Amendment form is used whenever a change is made to the original MLS or Listing Contract. This may involve extending the date, changing the price, altering wording on the print-out, correcting measurements, etc. If the amendment involves changes in listing date or price then it must be signed by all owners, as on the original listing contract, as well as by the manager of the listing agency.

Listing Cancellation

From time to time a listing is cancelled for various reasons. The Listing Cancellation form used in most areas has a preprinted clause which states that if the property sells within 60 days of cancellation, or before the natural expiry of the listing (whichever comes first), the seller is liable for commission.

The reason behind this clause is that, at times a seller may be told by a buyer to cancel the listing so that the seller will not be liable for the commission and the buyer will pay less. This dishonest approach tries to cheat the Realtor out of a commission, even through the Realtor may have spent hundreds of dollars on advertising and hours at open house and other showings trying to sell the house.

If the seller is very dissatisfied with the service of Realtor, the seller should speak to the manager of the listing agency and outline his/her concerns. The listing agency will make every effort to achieve satisfactory results.

Hold Action Form

At times, it is necessary to stop the marketing of a property for awhile because of illness or other personal circumstances of the seller. By definition, when your home is listed on MLS, all Realtors have an opportunity to find a buyer for your property. The Hold Action Form communicates your wishes to all Realtors who have access to MLS that you wish to delay the sale of your home.

Property Disclosure Statement (PDS)

Every residential listing placed on the MLS must be accompanied by this form which is filled out by the seller and signed, as acknowledgement, by the buyer. The seller indicates his knowledge of various aspects of the property, defects of which he is aware, and any upcoming expenses, (as in special assessments in strata-titled properties).

The Realtor is not permitted to fill out the form. After the Buyer signs and dates it, it usually becomes part of the purchase contract.

The form does not cover every aspect of the property. A buyer is still advised to consult an independent inspector if there are questions or concerns that are outstanding or not adequately answered.

PURCHASING-RELATED DOCUMENTS

Exclusive Buyer's Agency Contract

Many listing contracts for properties listed for sale on the Multiple Listing Service stipulate the compensation offered to the agent who obtains a buyer for the property. However, many listing contracts do not provide for the remuneration for the buyer's agent. To ensure that they will be adequately compensated for their service to you, some Realtors may request that you as buyer enter into a written agreement with them. The remuneration to the buyer's agent will still come from the transaction and will be able to be financed as part of your mortgage. Realtors who use buyer's agency contracts feel that this commitment on the part of both Realtor and client enables them to provide better service and offer the buyer a wider selection of properties from which to choose.

The Exclusive Buyer's Agency Contract outlines services you will receive from the Realtor, and the obligations of you as buyer and the Realtor in the buying transaction.

Limited Dual Agency Agreement

This form is used when the agent represents both the buyer and the seller in a single transaction. It is used when the situation involves either one salesperson who represents both the buyer and the seller, or when two salespersons from the same company are involved.

This agreement modifies the prior Listing Contract and the Buyer's Agency Contract and gives the agent the authorization to represent both parties in a limited capacity. It authorizes the agent to maintain both parties' confidences regarding motivation, negotiating positions and personal information (unless either party gives the agent written permission to disclose such information).

Contract of Purchase and Sale

The Contract of Purchase and Sale standard form is the basic contract signed by the parties (the sellers and the buyers). It outlines every aspect of the transaction, including the price, the terms and conditions, the dates, the inclusions and exclusions, the handling of existing tenancies, the deposit and increase (where applicable) and other legal matters as described in the preprinted contract and added as clause. Addendum

The basic blank addendum form is used to write additional clauses on the contract when there is not adequate space to do so on the contract itself.

Amendment to Contract of Purchase and Sale

This form is used to remove conditions (subject removal) when they have been satisfied, as in the situation where a buyer has to find financing by a certain date. When that has been done, the buyer signs this form indicating that this clause is being removed.

OTHER DOCUMENTS

Leases

Usually leases are used more in commercial transactions than in residential ones, but you may be a landlord or a tenant who prefers to use a lease for a specified time period for any number of reasons, including stability of tenure. A commercial lease is very involved and should be drawn up by a specialist in the commercial field and reviewed by a lawyer for each party.

A residential lease is less complex and normally involves little more than a standard rental agreement with an outline of the rules and regulations of the building or complex, or expectations of the owner and tenant above and beyond what the Residential Tenancy Act sets out. If you have any doubts about how to draw a lease or how to interpret specific clauses, consult a lawyer or a realtor.

Mortgages

Mortgages come in a wide variety of formats, depending on the lending institution. Now, many institutions use a simplified form and make reference to the larger form where any deviations from clauses in their standard form may occur. The buyer should check that the document matches the commitment letter they have signed outlining the terms, including the interest rate, the term, the amortization period, the prepayment privilege ("penalty"), the options (if any) for increasing the number of payments or making lump sum payments, the assumability of the mortgage if the property is sold, and the portability of the mortgage if the seller wishes to use it on another property. If you are a seller who is carrying financing for a buyer of your property, make sure that your lawyer reviews the documents before you sign them. If you are a buyer who is asking a seller to carry financing, make sure your own lawyer reviews the documents as well. Many serious issues may arise where the parties are unfamiliar with the law concerning mortgage financing.

 

 


 

 

 

Prepared by the Fraser Valley Real Estate Board


 
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