When it comes to real estate, there are unsurprisingly a few fallacies floating around. Curious what's true and what's myth? I'm debunking 2 of the most common Ontarian real estate misunderstandings! Whether buying or selling in the Niagara Region, these are a couple of the debunked real estate myths you should be aware of.
Your Buyer Representation Agreement Provides Cancellation Protection = MYTH
Many buyers have the misconception that their Buyer's Representation Agreement protects them in the event they are unhappy and want to cancel. However, according to Canadian law, both the client and the agent have contractual obligations to one another. For example, it's the agent's responsibility to help you either buy or sell a home. Contrarily, it's the client's responsibility to pay the agent the commission that was initially agreed upon by both parties if the transaction happens within the defined time period.
Your Realtor is Working ONLY on Your Behalf = MYTH
Although this is sometimes, even often the case, Realtors and brokers are legally allowed to represent both the seller and the buyer. While this overlapping (or multiple-representation) can get tricky due to sellers and buyers feeling it's unethical, it's actually quite common in Niagara and even more common in small or rural towns. This is because more remote regions only have one or two agents to work the area. The good news is here in Ontario, agents and brokers must get consent from both parties before entering into a multiple representation agreement. They have to declare fiduciary responsibility and get sellers as well as buyers to sign Form 320.
Ontario has some specific rules and regulations, which is why being informed is an important aspect of responsible buying and selling. Now that you know about the above debunked real estate myths, you're one step closer to buy and sell property like a pro. Stay tuned for more Real Estate debunking articles.