WHAT IS THE ROLE OF REAL ESTATE AGENTS IN A REAL ESTATE TRANSCATION?
In a real estate transaction, the buyer and seller are typically represented by a real estate agent. The buyer is represented by a co-op agent, while the seller is represented by a listing agent. Both agents play an integral part in the real estate transaction, and their responsibilities and loyalties differ. Although you re not required to engage the services of a real estate agent to buy or sell a property, you may seriously consider hiring one as there are tangible benefits to hiring a real estate agent. Below you will find more information on listing agents and co-op agents.
BENEFITS OF HIRING A REAL ESTATE AGENT
Real estate agents are familiar with the real estate market and the procedures set in place for buying and selling property in Ontario. An experienced real estate agent can help to negotiate the terms of the agreement, knows how to properly draft an agreement of purchase and sale, and can guide you as the various stages of the real estate transaction unfold. For example, they can refer valuable professionals such as valuators, lawyers, mortgage brokers, and inspectors. As a buyer, a good co-op agent will understand your needs and budget to find the ideal property for you. As a seller, a good listing agent will use information from comparable listings to obtain the best price on the market for your property.
LISTING/ SELLER’S AGENT
The listing agent in a real estate transaction represents the seller and may assist in calculating the fair market value of the seller’s property, they may be responsible for listing the home, and they may schedule on-site visits with prospective buyers. If the seller’s decor is outdated, the listing agent may stage the property, so the property is represented in the best possible way to prospective buyers. A listing agent is generally paid a percentage of the sale price of the listed property, which can be negotiated between the seller and the listing agent.
CO-OP/ BUYER’S AGENT
The co-op agent sometimes referred to as a “buyer agent”, represents the buyer in the transaction. The duties of a co-op agent include searching listings to find suitable properties for the buyer, contacting the listing agent on the buyer’s behalf to arrange on-site visits to the property, and communicating any offers to the seller. Once the seller accepts the offer, the co-op agent is responsible for guiding the buyers through the closing process.
Contact us today if you require legal assistance with a real estate transaction. Our real estate law team has the experience and knowledge to assist you throughout every step of the transaction.
Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us.
About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.