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FREQUENTLY ASKED QUESTIONS
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At this page we will answer frequently asked questions about real estate and related topics. If you have a question, please do not hesitate to send us an e-mail.
GENERAL
I do understand that a real estate transaction requires legal documents, but is anyone going to explain the mumbo jumbo to me? |
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ANSWERS
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| Are there any consumer protection programs when dealing with someone who sells real estate? When you deal with a registered real estate broker or salesperson in Ontario, you can enter the marketplace with a new level of confidence thanks to consumer protection programs administered by the Real Estate Council of Ontario (RECO).
Since January 2000, all registered brokers and salespersons have been required to adhere to a Code of Ethics. The rules of the Code of Ethics define the conduct expected of them and the principles upon which they must do business in Ontario.
The Code of Ethics covers areas such as confidentiality, written representation agreements, financial disclosure and advertising.
You may want to review the Code of Ethics to get a better understanding of what you should — and should not — reasonably expect of your registered real estate broker or salesperson. Click here to view the Code of Ethics.
Perhaps one of the most important things to remember is that RECO’s consumer protection safeguards apply only when dealing with a registered broker or salesperson. Therefore, the first thing you may wish to do when buying or selling a home is to ensure that the individual working with you is registered. You can do this by using RECO's online search. In order to trade in real estate in the province of Ontario, the individual must be registered under the Act (unless the Act specifically exempts them).
 How are real estate agents paid?Real estate agents work on commission, not salary, and get paid only after your home search is over, the contract negotiated and the transaction complete. Under the typical arrangement, the seller pays the commission to the real estate agent, and the agent's services are free to the buyer. Most listing brokers get sellers to pay 5% of the sales price. For more expensive homes, say over $500,000 sellers can sometimes negotiate a lower commission rate.
Because most real estate transactions involve two brokers -- one that produces the buyer and one that helps the seller -- the commission is divided, usually 50-50, between the two brokerage offices. Then, within each office, the salesperson who handled the transaction gets a share.
What does 'dual agency' mean?It is called a Dual Agency when an agent, brokerage or company is representing both the buyer and seller. Although legal, dual agency nevertheless comes with an inherent conflict of interest as the agent attempts to fairly represent two opposing clients and collect the full commission.
Buyers: Consider working with a buyer's agent who represents you exclusively (not both you and the seller) and is more likely to work with your best interests at heart. He or she will split the total 5% commission with the listing agent.
Sellers: Consider working with a seller's agent who represents you exclusively (not both you and the buyer) and that way always work with only your best interests at heart.
Buyers and sellers: As a rule, we do not represent both the seller and the buyer. If we are representing the seller of a property, we will inform prospective buyers, including our own clients who are interested in that particular property, that we are unable to act as their representative as well regarding the purchase of the property of our selling client.
Is it possible to sell a house without a real estate broker or agent?Usually, yes. This is called a FSBO (pronounced "fizzbo") -- For Sale By Owner. You must, however, be aware of the legal rules that govern real estate transfers, such as who must sign the papers, who can conduct the actual transaction and what to do if and when "encumbrances" arise which slow down the transfer of ownership. You also need to be aware of any mandated disclosures as to the physical condition of your house.
If you want to do it by yourself, be sure you have the time, energy and ability to handle all the details -- from setting a realistic price to negotiating offers and closing the deal. Also, be aware that 'do-it-yourself' sales are very often not successful (no sale at all) or not satisfactory (much lower sales prices than comparable homes sold). FSBO's can not post advertisements on the MLS and a majority of buyer's agents are reluctant or not willing at all to show FSBO's to their clients.
Can I have more than one real estate sales representative working for me?No, unless you and the real estate agents involved have reached a formal agreement to do so.
Can I request more than one real estate sales representative to send me home listings?Yes you can, but it is not very fair to the agents involved and could hurt your interests. Setting up a good home search requires a lot of work and if you have no intention to buy your home with a particular agent, you should not ask him of her to invest valuable time. You might say that you will do business with the agent who provides you with the listing of the home you want to buy, but nine out of ten times two or more different agents will send you exactly the same listings. Our advice: do your home work and select one Realtor to work for you. Provide him or her with detailed instructions what you are looking for. You will notice that he or she will go that extra mile for you when you show are committed. Last but not least: by dealing with several agents, you may risk the fact that you run into a home you would like to buy but that is offered for sale by one of the agents you provided with your personal information as a prospective buyer. Guess what happens with you at the negotiation table....
I went to an Open House and the real estate agent representing the seller promised me a special deal if I would use his or her services to present an Offer to Purchase.Instead of giving 50% commission to the co-operative broker, the listing agent would collect 100% of the commission in such a deal. You don't have to be a rocket scientist to understand that by promising you one or two thousand dollars, that agent will still be much better off. However, ask yourself two questions. Is that agent really representing the best interests of his or her clients? Whe don't think so. To us it seems like he or she is much more looking at the commission instead of getting the best deal for the seller. Question number two. Is that agent really representing YOUR best interests? We don't think so. Very likely you are paying your own "discount", to say the least. Doing business with an agent representing the seller is not very smart to begin with. Doing business with an agent representing the seller, who is putting his own interests above those of his or her client, should tell you something about how that agent will care about your interests ....
I do understand that a real estate transaction requires legal documents, but is anyone going to explain the mumbo jumbo to me? Before you put your signature on the dotted line, we discuss each and every item in the documents you are signing. We even present you with copies of important forms that offers clause-by-clause plain language explanations of the legal terminology used throughout them. Understanding what you are signing is essential to having a successful transaction.
I completed a Form at your website requesting home listings but I never received a response. We always reply within 24 hours by sending listings of homes that meet your requirements or, if no listings are available, with a message requesting to revise your criteria. If you did not receive our reply, please first check whether or not your e-mail settings are blocking our messages. Our mail containing listings will be sent from our mailbox ending with @trebnet.com, all other mail from @househuntingintoronto.com.
I would like to receive listings, but I prefer not to provide contact information. The contact information you provide us with will only be used to contact you in a way as indicated by yourself. We do not send Spam messages and we do not engage in tele-marketing or 'cold calling'. Your e-mail address and other contact information will never be never be sold, traded, bartered, or transferred to anyone, in any way. If you still do not trust us with your contact information, please do not request us to send you listings. If you provide us with fake or not complete information, we will not respond and delete your request immediately.
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CONTACT INFORMATION
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Rick McGuigan
Toronto real estate sales representative
Coldwell Banker Case Realty
Phone: 416-696-5100
Pager: 416-461-0925
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