The compensation that a real estate Agent receives is typically derived out of the seller’s proceeds. In other words, there is no direct cost for a buyer to use an agent in a traditional agent/buyer relationship but in fact the cost is integral to the transaction. Recently legislation requires Agents to enter into mandatory Buyer Agency Agreements in Alberta. A Buyer Agency Agreement is much like a Sellers Listing Agreement in that it clearly specifies the responsibilities, obligations and costs of each party (The real estate agent and the Buyer). In organized real estate boards an MLS system allows members to work together to sell one another’s listings spelling out the compensation offered for the cooperating (Buyers) real estate agent from the Seller. If this is the case and the fees satisfy the arrangement you have as a Buyer with your Agent, then you may not obligated to pay any direct fees. However if there are no, or lesser fees offered from the Seller, then the Buyer could be obligated to pay the fees or make up the difference. The benefit of this arrangement is that the Buyer’s real estate Agent can scour the entire market for properties that may even be listed by owner (outside of the MLS) or not even currently for sale. This reduces any potential conflicts of interest in that the Buyer’s real estate Agent maintains a clearer fiduciary obligation to uphold the Buyers best interests as reimbursement is more clearly delineated from the Buyer to the Agent.These Buyer Agency Agreements may also have terms to compensate the real estate Agent for additional services outside the normal scope of his duties. As well, they would have a limiting term (often six months). With a Buyer Agency Agreement the Buyer can be more certain of the services that they will obtain from their real estate agent. In return the real estate Agent is prone to provide these Buyers under Agreement a higher priority of their time and attention because they have more certainty of being paid for their efforts. If the Buyer purchases a property from another Agent, or directly from the Seller during the term of his agreement he can expect to be responsible for fees owed to the Buyer Agent that he is contracted with.
The Sano Stante Real Estate Group has been helping Buyers find and settle Calgary’s best real estate for over three decades. If often costs less, to hire the best. For confident, reliable and competent real estate service, why not call the best first.