Flaw in the Law – that must change – Buyers Beware

Owning real estate is humans’ single biggest investment. People put their maximum savings towards a down payment for a home of their dream. Government think that Buyers are protected through Real Estate and Business Brokers Act (REBBA) but that is not true. Buyers are not fully protected in cases where one Realtor is working for both Seller and Buyer. Here is what happens when you are buying.

According to the Real Estate Corporation of Ontario (RECO) that issues licenses to Real Estate Representatives and Brokers (Realtors), you can be a “client” or a “customer”. Client implies that you have signed a “Buyer Representation Agreement” with a Realtor. If you have not signed with anyone and are looking at houses on your own by calling Listing Agents or visiting open houses then you may revise the action plan. Most Buyers do not sign “Buyer Representation Agreement” hoping to save the money but that does not work. If you happened to be in an open house, you really liked the house and you asked the listing agent to prepare an offer for you means you are technically in contract and become his/her “Customer”. “Representation Agreements can be written, oral or implied” (RECO).