You have decided to buy a property soon? Congratulations!
If you have been looking for a property for a short time, you have surely already heard of the "BCP" or double representation, or even that "the Real Estate Brokerage Act" has been changed.
But what exactly happened, and what is a BCP?!
The law prohibiting double representation in a real estate transaction in Quebec is the Real Estate Brokerage Act. This law was amended on June 10, 2022 to prohibit the practice of double representation in residential real estate transactions. A real estate broker can therefore no longer simultaneously represent the buyer and the seller in the same residential real estate transaction. Finally! It was about time, as they say!
To understand the importance of being represented by a real estate broker, here are a few examples of what a broker CAN NOT do without a purchase brokerage contract (the famous "CCA"!)
The real estate broker without a brokerage contract cannot:
- Represent and defend your interests. The broker can only offer you fair treatment.
- Advise you according to your needs and specific criteria
- Provide you with comparables of sold properties
- Advise you on the price to offer in your promise to purchase
- Complete the promise to purchase forms and its annexes by giving you personalized advice to your situation
- Present a promise to purchase on your behalf
- Negotiate the price and conditions on your behalf.
By refusing to be represented, you are the one who will judge the price and the conditions to include (or not!) in your promise to purchase. You will not be able to count on the broker's real estate market expertise or on their sound advice which could save you not only money, but also save you a lot of stress. When you enter the real estate market and start your research, you quickly realize that the world of real estate is a bit like a jungle... Fortunately, it is possible to be accompanied by an expert guide: the real estate broker! The purchase brokerage contract is therefore a commitment, a pact of trust between you and this broker. It defines the rules of the game and protects both of you during the real estate adventure. ️This Indiana Jones of the real estate field protects you legally, guarantees you a professional service, clarifies the expectations and responsibilities of each party and allows for a smooth and secure transaction.
What exactly does this BCP include?
- Your information and that of your broker
- The description of the property of your dreams
- Your maximum budget
- The duration of your collaboration
- The broker's remuneration
- The missions of your broker (research, negotiation, etc...)
- Your obligations (collaboration, payment of fees, commitment, etc...)
- It guarantees a professional service from the broker
- It clarifies the expectations and responsibilities of each party
What are the advantages for you in all this?
By teaming up with a real estate broker, you will surely find your account:
- The broker who represents you is an expert in the market. He knows all the nooks and crannies of the city and knows where to find the rare gem that corresponds to your needs and your budget. When a broker knows his sector well, a simple address is often enough to have a general idea of its value!
- He has a "secret" address book. He has access to properties that are not always published on websites, and he can show you properties that are still under construction or not yet on the market, or that have been but have not sold.
- It saves you time and energy. No more endless internet searches and endless visits! Your broker takes care of all that for you.
- He is there to protect you. He guides you through the administrative and legal procedures, and ensures that you do not get taken advantage of. He is required to represent your interests loyally and diligently and can help you avoid pitfalls and make informed decisions.
- He's your best friend in the real estate adventure. He is there to answer your questions, reassure you and support you.
And how much does it cost to use a broker to buy?
In the vast majority of cases, real estate brokerage fees are paid by the seller. Exceptionally, the buyer may be required to pay fees, but these are generally minimal compared to the purchase price of a property. This is why you often see the mention that being represented by a broker for the purchase of a property is free for the buyer!
Ready to sign up with a broker?
Before signing, read the contract carefully and ask your broker all your questions. Here are a few questions to ask yourself before signing an exclusive brokerage contract to purchase:
- Do you trust this broker?
- Does this broker have a good knowledge of the local market?
- Is this broker listening to your needs?
- Is he competent and experienced?
If you answer yes to these questions, signing a purchase brokerage contract can be an excellent decision to help you buy your next property. Remember: a good real estate broker is a true ally. Be clear with him about your needs and expectations, and together you will find the property of your dreams! ✨
