Here are the top 12 General questions asked by buyers and sellers today.

Unlike other professionals who bill their clients at hourly rates, Real Estate professionals are paid at the end of a sales transaction.

If I work with a buyer or a seller for weeks or months without resulting in a transaction, then I am not paid.

Our commission earned is based on the selling price of the home. It is not paid until the transaction is complete.

Payment amount and service terms  are determined by the REALTOR®/brokerage  and the client. 

The amount is not fixed or approved by RECO, any government authority, or any real estate association or real estate board. 

Commissions are negotiable between REALTORS® and their clients. The exact percentage of the renumeration (or commission) should be spelled out in the REALTORS® contract /representation agreement .

You can agree to pay a fixed dollar amount, a percentage of the sale price, or a combination of both.

This ensures that the REALTOR® is compensated for work completed.

Technically, the REALTOR is paid by the seller at the settlement table, where the fee is subtracted from the proceeds of the home sale.

However, the sellers will take the commission into account when determining a listing price. So, in a sense, the buyers are paying the commission because they are paying to buy the house.

*The representation agreement cannot specify an amount based on the difference between a property’s listing price and what it sells for. Agreements must also identify circumstances in which the amounts agreed to might change and how they will change in each circumstance. *

If you are a seller: Your agreement needs to clearly indicate: 

• the amount you agree to pay your brokerage (or how it will be calculated) for the services and representation you receive;

• the amount (or how it will be calculated) you agree to pay, if any, to compensate the buyer for their brokerage fees; and, 

• how the amounts you agree to pay might change if you consent to multiple representation . 

If you are a buyer: Your agreement needs to clearly indicate: 

.the amount you agree to pay your brokerage (or how it will be calculated) for the services and representation you receive; 

• how the amount you agree to pay will change if the seller agrees to cover some or all of your brokerage fees; and,

• how the amount you agree to pay might change if you consent to multiple representation . 

Important note for buyers: A seller might not offer any amount to cover the fees you owe to your brokerage under your agreement. This could affect the amount you are able to offer for a property. Depending on your financial circumstances, you may not be able to afford to buy a property when the seller does not agree to pay your brokerage fees.

Bottom Line is Listing agents and their brokers spend time and money marketing a home, advertising, and preparing the home for sale, so what a Real Estate agent gets paid is to cover those services.

Buyer agents typically have a contract with their clients, so they are paid when the buyer completes a purchase, even if the buyers found that particular property on their own.

Whether you are a buyer or a seller, the professional support of your REALTOR® who represents your interests should be worth every dollar of the commission.

In Ontario,  the Selling/Listing Agent is required to disclose the number of competing offers to all buyers who have submitted a written offer. 

In terms of the contents of the competing offers, In Ontario, the seller chooses how much information, if any, they want to share about the offers they receive. 

Just understand the ball is in the sellers court  and they are not required to share this information and agents working for sellers are not permitted to share any of the content of the offers unless the seller directs them to. 

It is the seller who gets to chose whether or not to disclose any of the information pertaining to the submitted offers. The seller must direct the Listing agent in a writing with a  "sellers direction" in order to disclose any terms.  What to disclose is the sellers choice. It may include the offer price, closing date,  and or other specific information. 

The irrevocable clause states a date and time up to which time the offer is irrevocable. Before the time on the specified date, the party offering cannot revoke their offer. The irrevocable clause usually states that when the imposed time and date pass the offer becomes null and void.

Seller’s Perspective

Problems can also arise if the seller does not pay careful attention to irrevocable dates. Consider this scenario from the seller side perspective:

 Party A receives an offer from Party B on February 8 that is irrevocable until 11:59 pm on February 10.

 Party A counter offers back to Party B on February 8 but does not change the irrevocable date or time (only changes “buyer” to “seller”) in the Irrevocable clause. 

This has the effect of making Feb 10 at 11:59 pm the irrevocable date and time for the seller’s counteroffer to be reviewed.

 Party C makes an offer to Party A, that Party A wishes to accept.

 Party A informs Party B that they have received another offer they would like to take and that the counteroffer is revoked.

 Party A accepts Party C’s offer.

 Party B now accepts the Party A’s counteroffer before 11:59 pm on February 10.

Party A has now sold the property under two separate agreements. It will almost certainly end in a lawsuit or if Party A is lucky, they may be able to negotiate with one of the parties for a mutual release.

Both scenarios reveal Agents who do not understand what an irrevocable provision means in the agreement and they may have caused their clients to be exposed to liability. 

Although Party A is at fault for entering into multiple agreements, it is the agent who is responsible to advise Party A. Party A should have been advised about the effect of the irrevocable offer by the agent.

When a property is financed, bought or sold, a record of that transaction is generally filed in public archives. Likewise, records of other events that may affect the ownership of a property, like liens or levies, are also archived.

When you buy title insurance for your property, a title company searches these records to find and remedy, if possible, several types of ownership issues.

First, the title company searches public records to determine the property's ownership status.

After this search, the underwriter will determine the insurability of the title.

Even the most skilled title professionals may not find all problems associated with a property.

Some risks, such as title issues due to filing errors, forgeries, or undisclosed heirs, are difficult to identify. So, after the title company finishes its searching, it also provides a title insurance policy that will help protect you from a variety of issues that might be uncovered later.

If you take out a mortgage loan when you buy your property, your lender will require a loan policy of title insurance. This protects the lender's interest in your property until your loan is paid off or refinanced.

On the other hand, an owner's policy of title insurance insures your ownership rights to the property. Even though you will pay for this policy only once, your coverage will continue if you own your home.

A Real Estate purchase may be the largest financial investment you ever make. So, when you buy an owner s policy of title insurance, just think of it as buying some peace of mind!

Here is some example of what is covered by title insurance

•  Someone else claiming an interest in the property
•  Forgery and fraud
•  Typos and minor errors in the legal description of the property
•  Liens on the property (a legal claim by someone else on the property)
•  Construction liens (a lien placed on a property because of unpaid contractor bills)
•  Easements (the right for someone else to use part of your property without owning it      for example, a shared driveway)
•  Work orders
•  Being forced to remove structures because they violate zoning