Kelly ( Kailash ) Awasthy Sales Representative

1. The Buyer Representation Agreement Who Represents the Purchaser? Kelly (Kailash) Awasthy Sales Representative

2. Kelly Awasthy Sales Representative DID YOU KNOW? Ontario Law requires the PURCHASER’S AGENT to represent the SELLER when NEGOTIATING an OFFER

3. Kelly Awasthy Sales representative Did you know? The PURCHASER’S AGENTMUST negotiate the highest possibleprice for the Owner or the Purchaser’s agent can be sued by the Owner!

4. Kelly Awasthy Sales representative Did you know? Ontario now offers the PURCHASER a better OPTION!

5. Kelly Awasthy Sales representative THE OPTION? A BUYER REPRESENTATION AGREEMENT (B.R.A.)

6. Kelly Awasthy Sales representative What is a B.R.A.? Arelationship by which the purchaser enters an agreement with another party (The Agent) to act on his behalf.

7. Kelly Awasthy Sales representative Costs to the Purchaser? There are no additional costsfor ANYONE! The Seller pays the Agents’ Commissions, as usual!

8. Kelly Awasthy Sales representative How does this affect the Purchaser? • His or her legal status is dramatically affected. • The purchaser’s legal status changes from that of a“Customer” to being the “Client” • The “Client” has “Rights” to which a “Customer” is not entitled.

9. Kelly Awasthy Sales representative What is the REAL difference? To whom the agent owes the duties of “Loyalty, Confidentiality, and FULL DISCLOSURE”! With this Agreement in place, they are OWED by the Agent to the Purchaser, rather than the Seller.

10. Kelly Awasthy Sales representative What does this mean to a Purchaser? FIRST... • The Purchaser’s Agent is no longer obliged to disclose pertinent information about the purchaser to the Seller, which could affect the selling price. • By the time a purchaser is ready to make an offer the agent has often gathered significant information that the purchaser would not want the seller to have. • Information the Agent would have been obligated to disclose!

11. Kelly Awasthy Sales representative AND.... With Buyer Agency (Representation), the Purchaser’s Agent can now disclose to his or her Client (the Purchaser) anything about the Owner the Agent learns that might enhance the Purchaser’s, not the Owners, negotiating position.

12. Kelly Awasthy Sales representative What else? Secondly... • The Purchaser’s Agent is now free (of liability) to negotiate the best possible price for the Purchaser. To use his or her negotiating skills to assist the Purchaser to buy at the lowest possible purchase price. • The Agent can now attempt to save the Purchaser Thousands of Dollars through his or her legal duty of “Loyalty” to the “Client”.

13. Kelly Awasthy Sales representative What are the Purchaser’s obligations? • To be a binding Legal Agreement “Something” must be given in return for “Something” received. • In this case, the only “Something” that the Purchaser gives in return is “LOYALTY” to their Agent.

14. Kelly Awasthy Sales representative What about the Commission? • The commission, as has long been common practice, is paid out by the “Proceeds of the Sale”, as outlined in the listing agreement. • When the lawyer collects the proceeds of the sale, he sets aside the commissions to be sent to the listing brokerage and distributed to the Buyer’s Agent from there. • Since this does not at all affect purchase price, the question of who pays commission becomes irrelevant!

15. Kelly Awasthy Sales representative Why would the Owner agree to this? The net result to the Owner does not change! • The Seller still makes the final decision on what price they will accept for the property. • The Seller still pays the same percentage of commission, and ultimately, still net the same!

16. Kelly Awasthy Sales representative The Advantages of Buyer Agency Buyer Agency allows the agent to act in the Purchaser’s best interests in several areas including the following: • Home selection • Negotiating price • Financing • Closing date • Disclosure

17. Kelly Awasthy Sales representative Home Selection Because of the Agents obligation, under the terms of a B.R.A., to guide the Purchaser, not the Seller, he or she can now draw on the Agent’s knowledge to advise the Purchaser on buying a particular home or of buying in a particular area.

18. Kelly Awasthy Sales representative Negotiate Price • The Seller may be willing to accept thousands less than the Buyer is willing to pay. • For most Sellers, there is a range between what they ask and what they hope to get. • However, in many cases, there is another price: The price the Seller is willing to accept! • With Buyer Agency, the Agent is empowered to negotiate the absolute best price the Seller will accept.

19. Kelly Awasthy Sales representative Clause Selection • Without Buyer agency, the contract, by law, must be written “in the best interests of the Seller.” • However, there are several clauses that should, from time to time, be included, such as a Home Inspection, Termite Inspection, Environmental Inspection that may not be beneficial to the Seller. • With Buyer Agency in place, the contract must be written in the “best interests of the Buyer”!

20. Kelly Awasthy Sales representative Financing There may be certain financing available such asSeller Take Back, that may save the Buyer thousands of dollars that the Seller may not appreciate, however be willing to accept. By having Buyer Agency agreement the Agent can explore these options.

21. Kelly Awasthy Sales representative The Closing Date • In a traditional Offer Negotiation,both Agents work for the Owner and, therefore, try to persuade the Purchaser to accept a closing date suitable to the Seller’s requirements. • With Buyer’s Agency, the Agent is required to negotiate the best closing date for the buyer!

22. Kelly Awasthy Sales representative Disclosure -The Single Greatest Advantage Would it effect your Purchasing or Pricing decision if you knew: • The Seller would accept less due to Financial difficulties • The Seller would accept less due to Marital difficulties • The Seller would accept less than Fair Market value for any other reason • You could purchase a Private for Sale in the area for less money • Future construction plans for the area • Factors which could positively or negatively influence the Future value of the area • Another property might be more desirable • With Buyer’s Agency, your Agent must, and will, disclose any such vital information or advice to which he or she has knowledge or access!

23. Kelly Awasthy Sales representative Why Buyer Agency? The Buyer’s Agent can negotiate a better purchase price and more favourable terms. The “best interests” of both parties, not just the Seller, are being protected.