RECA is preparing to implement a rule change that will require written service agreements between brokerages and all clients. Translated, this means that REALTORS® will need to enter into a written service agreement with buyer clients as they currently do with seller clients.
The rule change will affect all industry sectors and is expected to come into effect mid to late 2013.
REALTORS® who represent buyer clients will be required to establish a written service agreement with them.
This topic often results in two main concerns:
Binding Service: The written service agreement will not necessarily bind the buyer client to an exclusive service arrangement with any one member. Practitioners and clients will be able to opt to enter into either an exclusive or a non-exclusive agreement.
Financial Obligation: The written service agreement will not necessarily bind the client to a financial obligation. For example, the written agreement can stipulate that buyer brokerage compensation may come from the seller or seller’s brokerage.
More information will become available in the months to come…