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How much are closing costs in Edmonton Alberta

Are you ready to purchase your new home? Often, buyers find themselves overwhelmed with the cost of purchasing a home and should be aware of these extra home costs to ensure you won't be struggling at the last moment to find more cash to complete your purchase.

When a home is sold, the buyer incurs various closing costs in addition to the property sale price. Although most of the expenses of the house are paid for by the seller, usually including real estate commissions, the buyers pay a variety of fees such as mortgage origination charges, appraisal fees, title insurance, lawyer, home insurance, homeowner association fees (HOA) and property tax adjustments. Depending on the buyer and the home purchased, there may be additional fees including CHMC Fees, which can be added to your mortgage amount and other costs. agreed upon and not covered by the seller costs. Avoid extra closings costs due to a delayed closing

Don't forget your moving and utility hook-up costs. As a rule of thumb, one to two per cent of the cost of your home will cover all closing costs. If you have questions or would like to know more about purchasing a home, email us.

If you are waiting to purchase a home - Keep up to date on the proposed HST tax which will be an additional cost when purchasing a home in Edmonton.

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How to Write the Right Real Estate Offer

The hardest part of buying a home is house-hunting to find the right property. Once you have found a property you like, the next step in to write an offer. Purchase agreements in Edmonton are standard Alberta real estate contracts and consist of the same clauses. What makes the difference is what you add to the agreement and negotiations skills.

First, we need to add the most important criteria which include:

  • Seller Names
  • Buyer Names
  • Property Address
  • Legal Description
  • General Terms of the Agreement
  • Deposits
  • Chattles
  • A Representation & Warranty Clause
  • Conditions & Terms
  • Closing Procedure Process
  • Additional Attachments id required
  • A Remedy Clause
  • Notice & Document Clause
  • Offer Price
  • Signatures & Dates

Sellers Names: Ensure the property title matches the names exactly as set out on the title. If there is only one person on tile who is married, have a dower consent form validated by a notary or real estate lawyer.

Buyer Names: Offers must be written with the legal name of a buyer and persons obtaining the mortgage or if in the name of a company, additional documentation will be required.

Legal Description: This is the legal address of the property. For Single-family homes, it contains a Lot, Block and Plan number. If it is a condominium, there may be an additional legal address for a storage unit or parking stall.

General Terms of the Agreement: usually include a surplus of items and how they factor into the sale of the property from who is responsible for providing a real property report, determining non-resident status for income tax purposes, who will be holding the deposits, any known defects in the property and other terms.

Representation & Warranty Clause: To ensure the person signing has a legal right to sell the property along with any chattels and the physical property is not situated on a utility right-of-way or encroaching on the neighbours.

Conditions: Are items that say " When I receive _________, I will proceed with the sale of the property." These items are satisfactory financing, satisfactory property inspection and satisfactory review of condominium documents. The Seller may also add conditions such as review of contract from lawyer, final probate or finding another property.

Terms: Are items that either the buyer, seller or both have to agree upon to complete the sale. These items can range from picking up dog faeces in the backyard, to having the property professional clean prior to moving into repairing items found in your inspection.

Closing Procedure Process: Sets out the terms in how the title will be cleared of the existing mortgage caveats or liens against the property as well as who will be responsible for any closing delays. Read more on possible closing delays

Additional Attachments can include a huge list of items, but the most common attachments will be either an addendum, amendment to the original offer, a subject to sale form or disclosure statements

Offer Price: This Will be determined on a set of factors from the current market value, supply and demand, absorption rate, economic factors, property condition and location, how much the buyer & seller are willing to agree upon and the negotiation skills of your Realtor. Ask your Edmonton Realtor for a Buyers Comparative Market Analysis to determine fair market value prior to making an offer.

Need help in writing the right offer? Give us a call at 780-237-7074 and for a small fee, we will help.

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A Step by Step Guide to Buying a Home in Edmonton

Step 1: Learn about Homeownership

There are many benefits to owning your home including personal freedom and financial equity building. Every year you live in your home, you gain a higher return on your investment. In 2005, the benchmark for a single-family home in Edmonton was less than $200,000. By the middle of 2007 at the end of our real estate boom, the average price for a house was over $400,0000. Today, we live in a city where house prices are extremely affordable and is a great time to make a real estate investment.

Step 2: Are You Financially Ready

A mortgage calculator will help give you an idea of how much you can afford, but until you have spoken with a mortgage broker and have submitted the proper paperwork, it is only an estimation. Get your mortgage pre-approval before you contact an Edmonton REALTOR®. Sometimes you may think you will be approved, but there is something in your credit that you are not aware of or your debt ration is too high to qualified at this time.

Step 3: Find the best Edmonton REALTOR® for you

Take the time to research to interview a few real estate agents who you feel will best represent you. There are several questions you may want to ask before hiring the right one. After selecting your agent, you will want to schedule a sit-down or virtual meeting. This is an important step to understand how your agent will be working for you and you must be aware of where you stand.

Step 4: Start Your House Hunting

This is the time when the excitement starts to happen and you already know how much you can afford. A licenced agent can simplify this step by adding you to "autoprosecting" with your desired homebuying criteria, saving you time. Once you have found some potential properties, it's time to physically start house hunting. Call your Edmonton REALTOR® and ask them to set up the showings.

Step 5: Writing the Offer

Once you have found the right home, the next step is to write an offer. Your Edmonton REALTOR® will explain the alberta real estate purchase agreement and help you with writing for the best offer a favourable outcome. The main items in an offer to purchase are:

  • Terms: Items that are agreed to and will be upheld, otherwise, there is a breach of contract. In addition to the standard terms that will be reviewed with you when preparing the offer, you can add in whatever else you need to, however, these are open for negotiation.
  • Conditions: Items in the contract that must be fulfilled in order for the transaction to even proceed forward. Typical conditions are subject to satisfactory home inspection, satisfactory financing approval, and satisfactory review of condominium documents. The buyer or seller is then given a few days to fulfil the conditions (usually 7 to 10). This is what it is meant by a property status that is listed as pending.
  • Deposits: In order to write an offer, you will need some available money for a deposit. In Edmonton a $5000 initial deposit is common. In the event a buyer is unable to satisfy all conditions, this initial deposit is fully refunded back to the buyer.
  • Possession: The possession date is the closing date on when the property title has been transferred into your name. The possession date in Edmonton is usually 30 -45 days, However, once conditions have been removed you can physically be in your new home within a week. If the property is tenant occupied, expect 3 to 6 months for possession. Closing dates for foreclosed properties are normally determined by the bank or a judge. 
  • Price: The amount offered for a property is determined by several factors including the sellers and buyers motivation, property condition, location and future resale value. The offer should never be based on what the seller is asking. To ensure that you will not be paying higher than market value, ask your Realtor to complete a Buyers CMA for you.

Step 6: Submitting Offer

Once everything has been agreed upon by the buyer and the seller and all signitures and initials are on the contract, you are now in a pending posistion. This means your offer has been accepted upon your fullfilling the contigencies. Send your offer to your financial institution for the approval. (A pre-approval does not mean the bank has already granted you a mortgage) It needs to go through the system again.

Step 6: Property Inspection

Always have a property inspection especially on character homes and new builds. There is no such thing as a perfect house and a property inspection can save you thousands and thousands of dollars. 

Step 6: Addendums & Amendments

This is the time where you and your Edmonton REALTOR® make any adjustments reguarding the original offer to satisfy your concerns. For example, if the furnace is on its last days, you may want to ask the seller to replace it before you remove your conditions.

Step 6: Condition Removal (The waiver)

Once conditions have been satisfied, there is a final document to be signed called a "waiver". Once signed, you have officially purchased your home. Congratulations!


Other Things You Need To Know

With large real estate companies like our Remax Elite office, we have a conveyancing department that forwards all purchase agreements paperwork including addendums to your lawyer prior to your arrival and has their own trust account to ensure your deposits are secure.

In Alberta, your real estate lawyer will contact you about a week prior to your possession to set a date for you to sign the final paperwork. At this time, you will be asked to bring:

  • The remainder of your downpayment. (Your initial deposit will be added to your downpayment.)
  • An insurance binder (a piece of paper from your insurance company confirming you have proper homeowner insurance)
  • The Lawyers fee and disbursement costs
  • Your identification

Step 7: Possession!

On your closing date (possession day), the buyer's lawyer transfers the mortgage funds to the seller's lawyer. The seller's lawyer contacts the listing agent who contacts your Edmonton REALTOR® and arranges key pickup. This usually happens before noon.

If you have questions about buying a home in Edmonton or the surrounding area, we are here to help. Contact us today!

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How to Hire the Right Real Estate Agent when Buying

Choosing the right REALTOR® is one of the most important decisions that you will make when you’re ready to buy a home in Edmonton. A good agent can help you navigate the buying process with minimal stress, whereas a not-so-good agent might make the process harder on you (and your wallet) than it needs to be and a great agent will provide a great buying experience. There is no magic formula for finding a great agent, though there are certain steps that you can take to improve your chances.


What should you look for when you choose a real estate agent?

Behind every good Edmonton REALTOR® is a set of skills that make them a top choice when you’re looking to buy. So what are these skills? They will vary depending on your needs and your personality, but at the very minimum, you should choose a REALTOR® who has key qualities.

Good communication is a key factor in a real estate transaction and being comfortable with your chosen agent is important. If you are analytical, find an agent who is also analytical and system focused. These agents are usually dressed in a suit and will provide you with detailed information like our relocation agents. If you are really social, choose an expressive agent. These Edmonton REALTORS® can be found via Facebook and are usually dressed in bright colours.

Don't be nerveous about asking questions, that's how we learn. Also don't be offended if an agent refuses to show you a home - sometimes REALTORS® don't have the time or they choose not to help new buyers.

Top Questions to ask a REALTOR® when Buying

How long have you been an Edmonton REALTOR®?

Agents that have been in the business for a while will be familiar with the municipality and the surrounding area where they do the most business. If an agent is not familiar with the municipality, hopefully you are and can anticipate problems before they arise.

Do you have a real estate speciality?

Most experienced Edmonton REALTORS® have a speciality whether it be single family homes, condominium sales, rural properties or luxury home sales. Each one of these residential properties have different municipal rules and regulations.

Can you tell me about the areas we are interested in?

Your REALTOR® should be knowledgeable about the area you’re looking at. Edmonton communities vary in demographics and amenities from one neighbourhood to the next. For example if you are buying a home near Summerside lake, your HOA fees will be higher or recent structual concerns with a condo complex.

Will I be working with you individually, or with a team?

If you enter an agent-buyer relationship via a buyer brokerage agreement with the understanding that the agent will be handling you personally, it can be alarming to be handed off to an assistant. Ask who you will primarily be dealing with.

Can you recommend ...?

Mortgage brokers, appraisers, property inspectors and real estate lawyers. A good agent will already have a number of real estate professionals they work with on a regular basis. Although Edmonton REALTORS® can provide a list of other professionals. you are not obligated to work with them.

How do you get paid?

As with any financial transaction, get a good understanding of how your agent is being compensated. This will vary on the agent. There may be a unrefundable retainer fee, an extra service fee, or you may need to pay out of pocket for the services - find out before entering into a relationship with them.

What’s the best way to contact you?

Every REALTOR® in Edmonton prefers different ways of communications. Some agents do not give out their cell phone numbers and others are not tech-savvy. Some agents will reply immediately and others can take hours.

Do you work on weekends?

Ensure that the availability to show you properties works for both you and your agent or a member of their team. Not all Edmonton REALTOR® are available 24/7. Some work business hours only.

How many homes are you willing to show me?

Some agents will only show you 3 properties, while others will show you dozens of homes. If an agent is only willing to show you a few properties, it is probably because they are too busy, however, if a REALTOR® is willing to show you unlimited properties - they are called a "Wheel Estate Agent"

Will you provide a CMA for this house?

A CMA or comparative market analysis can help you determine the fair market value for the property you have chosen and determine if the asking price is accurate. You do not want to overpay!

Take the time to talk with the agent to find the best fit for you. We recommend interviewing 3 Edmonton REALTOR®. Our agents can be contacted directly at 780-910-5179 oremail us!

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Pros and Cons of Different Property Ownerships

Before buying a home, it’s important to consider what type of lifestyle you live. If you travel a lot, a house may not be the best choice. No matter what type of home you choose, there are advantages and disadvantages. It makes sense to review all the pros and cons of home you're looking for.

Advantages of Single Family Homes:

  • Solely investing in a tangible asset
  • Building equity as you pay down your mortgage.
  • Greater privacy and an option to renovate it to your personal style
  • Stable monthly payments on a fixed mortgage mean you’ll pay the same monthly amount until the end of your mortgage term

Disadvantages of Single Family Ownership:

  • It will be more difficult to pick up and move to another city.
  • Maintenance costs are yours and over time, something will need to be replaced from a leaking faucet to new shingles

Advantages of owning a Condomium:

  • Easier upkeep
  • Condo fees usually cover the cost of exterior maintanance, common areas, heat & water and sometimes electricity and cable costs
  • Communal living (you are part owners of a greater area and may even become part of the managment board)

Disadvantages of Condomium Ownership:

  • Condo fees (In addition to your mortgage you must pay monthly condo fees)
  • Less Privacy (Depending on the style most condos share at least one wall with thier neighbor)
  • Restrictions (Depending on the complex there may be restrictions such as noise, odor, pets, ect)

Pros of owning houses:

  • Freedom to do what you want from demolishing the house to adding additional rooms, gardens, garage or basement suites for residual income.
  • Even if the value of the structure itself depreciates, the land on which it sits can become more valuable
  • Backyard BBQs & entertaining outdoors

Pros of owning townhouses:

  • Semi-private yards
  • If there is a major upgrade, the cost is sharded by each unit
  • Your own parking spot/garage
  • You can change anything in the interior of the home from kitchens to fresh paint
  • Your neighbour can keep an eye on your property while you are away

Cons:

  • There will be a monthly condo fee
  • You are responsible for maintaining the interior of the property
  • You are living close to your neighbour
  • Condo fees can increase

Pros of owning apartment condos

  • Condo fees usually cover the cost of heat & water and sometimes electricity and cable costs
  • No exterior yard work
  • Less cost to homeownership

Cons:

  • Less privacy. Your neighbours will know when you come home and when you leave.
  • There may be rules on the type of flooring you are allowed to put in your property
  • Must abide by all bylaws
  • Pet restrictions 
  • Condo fees can increase

Pros of owning new builds:

  • Alberta new home warranty
  • You will be the first person to live there
  • Everything is fresh
  • New appliances 

Cons:

  • The cost of new builds is higher than resale.
  • Added GST (usually already hidden in the price)
  • If there is an issue, you will need to deal with the builder
  • You will be responsible for adding fences and completing landscaping
  • The cost of finishing a basement
  • Annual HOA Fees
  • New builds are on the rise due to a higher lumber cost


If you have questions about buying a home in Edmonton or the surrounding area, we are here to help. Contact us today!



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Benefits of New Home Buying

From lower upfront maintenance costs to design flexibility, new construction provide opportunities for home buyers. While some buyers are holding out for the right house to become available – one with historic charm, outdoor space, square footage, or whatever they’re seeking – others are skipping the search and going straight to new construction. Not only can buyers customize the home to meet most or all of their needs as well as their wants, negotiating the contract can be less complicated.

One of the biggest advantages of new construction is that homes are sold on a first-come, first-served basis. That means usually no bidding wars or competing against another buyer. Another advantage is in the province of Alberta, most home builders will supply the Alberta new home warrenty free of charge.

New construction homes are more energy-efficient and requre less maintenance. This is a bonus when it comes to paying the high costs of our heating bills. New construction can offer the advantage of new technology from electrical outlets in your garage to charge your vehicle to nest thermostats to control lights remotely. 

The biggest benefit of purchasing a new build is that you are the original owners and everything is sparkling new from your heating ducts and hotwater on demand units to your gleaming hardwood floors and granite counter tops. 

Downfalls of New Home Buying

There are usually quite a few item which arise during the inspection (builders usually have these issues completed prior to possession and allow you to do a walk-through prior to your lawyer forwarding the funds)

The completion date on your new home more often than not is delayed (sometimes by a few months). If you are anticipating a bak to back move - have a back-up plan just incase you are homeless for awhile.

Unless you have chosen a builder who is willing to work with you outside of the designated land plots, you will have to choose a builder who is already under an agreement with the land owner. Builders rarely allow buyers to bring in their own contractors during the construction process.

If you are buying new, expect to be waken by the noise of construction workers and their big trucks. Prepare for a few flat tires caused by dropped nails. And expect your neighborhood to be dusty until construction is complete.

Normally in Edmonton, builders will complete the rough and final grade landscaping for you. But it will be your responsibility and cost to complete the sodding, fences and sometimes the deck.

The largest downfall of buying new is cost - price per square foot - new homes are more expensive.

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How REALTORS® help Edmonton home buyers

There are several reasons why buyers choose to work with REALTORS® when buying a home, even when a buyer has sold their existing home via "For Sale by Owner". A few of these reasons include knowledge of the ever-changing markets, expertise in both negotiations and communities, experience and exclusive real estate tools. And there is usually no cost for a buyer to use a REALTORS®.

A large portion of canadian real estate agents have now earned their ABR (Accredited Buyers Representation) designation, which means, these REALTORS® have completed the education needed to service buyers with a higher standard.

If you have questions - ASK. Never sign anything until you fully understand what you are signing. Real estate agents deal with contracts on a daily basis, and most of us can explain listing and purchase agreements without even looking at them.

In the province of Alberta, most REALTORS® work with thier buyer clients under a signed buyers brokerage agreement. If you are not under a brokerage agreement - a real estate agent can still help you under a customer status. However if you are working with an agent under a customer status, the REALTOR® will be working in the best interest of their clients - not yours!

In an Exclusive Buyer Representative Agreement, it states...

  • 14.1 You acknowledge that:
  • (a) you have read this agreement.
  • (b) you have received and read the Guide.
  • (c) this agreement creates a sole agency relationship with us, as the Guide describes.
  • (d) you had the opportunity to get independent advice from a lawyer before signing this agreement.
  • (e) this agreement accurately sets out what we and you agree to.

This means you can obtain legal prior to signing or you may want to take the agreement home to read over more thoroughly. These agreements are not rocket science, but knowing what you are signing is important.

  • REAL ESTATE TIP#1: "The Guide" is referring to the Consumer Relation Guide which explains how the professional relationship including fiduciary duties and the real estate agency will interact with each other.
  • REAL ESTATE TIP#2: Buyers Real Estate Agents, normally do not charge an extra fee above what is offered by a seller, unless otherwise agreed in writing.

Have a buyer Brokerage agreement question? We are here to help. Contact us anytime

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Questions to Ask a Buyers Real Estate Agent

Below is a great question list for all Edmonton new home buyers. Purchasing a home is one of the largest investments you will make in your lifetime. Choose your REALTOR® carefully. Don't be afraid to ask questions.

What type of properties do you mostly sell?

Purchasing a single-family detached house is different from buying a condominium, new builds, luxury properties, acreages or commercial properties. It is important that the Edmonton Real Estate Agent you choose has in-depth knowledge of the type of property you are planning on purchasing.

What is your negotiation style and experience in multiple offer situations?

In a buyers market, you may be in a multiple offer situation and great negotiating agents have personalized techniques for winning bidding wars. Some agents can be too aggressive and will lose due to their unlikeability, other agents can be too passive. Choose a real estate agent who is creative, on your side and knows how to write an offer to purchase.

Do you have other professionals you work with on a regular basis?

Again, another very important question. Agents have relationships with other real estate providers and depending on how this question is answered, it will give you an insight on how long they have been in real estate, but more importantly on how they conduct their business.

Are you a full-time real estate agent?

Not all agents are full-time REALTORS®. You don’t want someone doing this part-time or as a hobby. Looking at properties for fun is not the same as having fun when looking at homes. When viewing homes, great Edmonton real estate agents will point out the flaws of each home and they all have them, not commenting on how pretty the bedroom is set up. All REMAX Realtors® are full-time agents.

Do you normally work in my price range?

Most Edmonton real estate agents work a wide range of prices, but if they usually help home buyers purchase million-dollar homes, you might not be a top priority. Similarly, if you want to purchase new build homes and they normally work on resale properties, the agent may not have the right connections for Edmonton home builders.

Will I be required to sign a buyer brokerage agreement?

If any Edmonton Real Estate Agents answers "No", find another REALTOR®. The Canadian Real Estate of Alberta has mandated to work with all residential buyers under an agreement. There are 2 types of agreements - Exclusive & Non-Exclusive buyer brokerage agreements. There are also 2 types of agencies - common law and designated.

Do I have to work with your recommended service providers?

If the agents say “yes”, it’s illegal. Find another REALTOR®. Good real estate agents in Edmonton should have solid recommendations for other service providers, but you should never feel pressured to use their recommendation. A good agent doesn’t do everything on their own. They have a team of other professionals including mortgage brokers, home inspector, contractors, conveyancers, real estate lawyers, etc.

Can I review all documents before I sign them?

A good real estate agent will take the time to explain the documents and provide you with ample time to review important documents. Never feel pressured into signing. Real estate contracts are a binding agreement and it is important you understand them thoroughly prior to signing.

Do you use e-signature or DocuSign?

An e-signature is an electronic signature and gives you an indication of how internet-savvy the real estate agent is. the electronic signature also eliminates the need to print, fax, scan, and ship documents and are time documented. During this conversation, your agent will also mention auto-prospecting, which is a system to keep you updated the moment a new home that meets your criteria arrives on the Edmonton or surrounding area market.

How long have you been a licensed real estate agent?

This question is one that cannot be missed. Experience in the real estate industry is important. The longer a real estate agent has been selling real estate, the more transactions they have likely completed.

Do you attend the inspections?

Again - a very important question. (especially with new homes). When a concern arises during your home inspection, your agent will be there, as a professional working in your best interest, to ask the inspector the right questions to help you make an informed decision about the property.

You should be comfortable with the REALTOR® you choose. After all, this is probably the biggest investment you will make in your lifetime. Choosing the wrong REALTOR® could cost you thousands of dollars by either using someone not experienced in the real estate business or accepting the sellers price without completing a buyers comparitive market anylsis.

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Do you really need a property inspection when purchasing a home in Edmonton?

A property inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation. It is for the sole benefit of the purchaser and is usually subcontracted to a certified licensed residential real estate inspector, paid for by the buyer, and can take one to four hours depending on the size and condition of the property. At the end of your inspection, a standard home inspector’s report will be supplied covering the condition of the home.

A property inspection can identify the need for major repairs or builder oversights not known to the seller which can lead to unpleasant surprises and unexpected difficulties in the future. Buying a home can be the largest single investment you will make and spending a few hundred dollars for peace of mind is money well spent.

Property inspection components covered include:

  • heating system including furnace and hot water tank
  • the central air conditioning system
  • carbon monoxide and fire alarm detectors
  • interior plumbing using both visual and water residue tools
  • mold issues and water damage
  • electrical systems
  • the roof & attic
  • visible insulation of walls, ceilings, floors, windows, and doors using a thermal ray tool
  • foundation & basement
  • other structural components which may need major repair or replacement.

Depending on your chosen property inspector, there may be some things that will not be inspected such as things that can not be seen visually and appliances. You may want to check that these chattels are in working order.

Foreclosures:

If a home inspection is not allowed on a bank foreclosure offer to purchase, it is still a good idea to have one done at a later date.

New Homes:

In Alberta, builders must supply a new home warranty at closing, however, new homes should ALWAYS have a home inspection done by a licenced, certified building inspector. Building a house takes time and there are always things that get missed. It is easier to address these concerns before you remove your inspection condition.

Nothing is Perfect:

During the inspections, there will be items that will be found. There is no such thing as a perfect house. Usually more items are found on new builds rather than resale homes. 

What if there is an issue:

Hopefully you have an inspection contingency if the report reveals problems. If the inspector identifies problems, it doesn’t mean you should or shouldn’t buy the house. Talk it over with your real estate agent. There are a few options to address any concerns you have.

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Understanding Buyers Brokerage Agreements in Alberta

Buyer Brokerage Agreements have been around for several years, and have only been mandated for the last decade. This legal change created security for both consumers and REALTORS® in Edmonton and throughout Alberta. This form states the responsibilities of both the buyer and their real estate agent including:

  • The mandated fiduciary duties, to protect the interests of the buyer
  • The buyer cannot hire more than one broker or real estate agent to represent them
  • The term of the agreement. Depends on how long the real estate agent chooses to work with a buyer, this agreement is normally 30 Days to 1 year and allows enough time for the buyer to purchase a home. If the buyer has not purchased a home during the time frame, they may extend the agreement or sign with another agent. (The time frame is negotiable)
  • The retainer fee (normally $1000 - $2500) is held in trust by the real estate agent/broker and forms part of the buyers down payment. This means the amount of your retainer will be used as part of your downpayment. However, if you do not purchase within the specified time range, your retainer will default to the real estate office trust account.
  • Remuneration is stated in the agreement and can not be changed without written consent from all parties once agreed upon. This protects the agents' commissions and allows the buyer to know how much the REALTOR® receives for their services. (usually paid for by the sellers)
  • While under the agreement, If the buyer elects to purchase a property without the help of their real estate agent, they will owe the agency the commission set out as per their Buyers Brokerage Agreement.
This agreement also lays out the obligations and duties of the real estate agent ensuring the agency is working in the buyers best interest. Some of these obligations may include:
  • Showing you all properties you may be interested in as soon as possible
  • The duration of the agreement
  • Advertising for properties that meet your search criteria (paid for by the buyers agent)
  • Pulling land titles certificates to ensure closing capacity
  • Setting you up on Auto-prospecting.
  • Fiduciary Duties of the real estate agent
  • Explaining and helping to prepare writing offers to purchase
  • Negotiate favourable terms for the buyer
  • Provide a Buyers CMA to ensure you are not overpaying
  • Inform you of all aspects of your offers including any counters
  • Assist you with a chose of mortgage brokers, inspectors, lawyers, etc
  • Any other relevant services you may require 
Summary:
Basically, a buyers brokerage agreement allows the REALTORS® to work in the best interest of the buyer and disclosure ALL KNOWN information on both the property and the seller. Under a customer status, this is not the case.
 
Note:
When buying a new build - use a REALTOR®, not the salesperson working at the show home. Who do you think they are really representing?  

For more information on working under a Buyers Brokerage Agreement, feel free to contact us.

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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.