Buying a home? 5 forms you need to understand

Buying a home? 5 forms you need to understandIf you’re house hunting this season, you want the process of finding and buying your dream home to be an enjoyable, stress-free experience. To help, we’ve made a list of five essential forms that you’ll encounter along the way.

Buyer Representation Agreement. If you’re being represented by a brokerage then you’re considered their client and this form outlines the legal agreement between you and your brokerage. It contains an explanation of the many items, including the services the brokerage will provide to you, fees for those services, the obligations you have as a client and the expiry date of the agreement.

Customer Service Agreement. If you prefer not to enter into a client contract with a brokerage, then you may choose to be a customer and will receive a different service than if you were a client. As a customer, you will be treated fairly & ethically and will be provided honest information while your Realtor takes care not to misrepresent any facts.

Confirmation of Co-operation and Representation. This form confirms representation or customer relationships between the brokerages and the buyers and sellers. This form also details remuneration to be paid. You’ll be asked to sign a CCR before making an offer or any negotiations on a property.

Agreement of Purchase and Sale. This form is used initially by a buyer when making an offer on a property. Once the offer is made and accepted, the offer becomes a legally binding contract. Be sure you understand what’s in your offer before you sign it. Agreeing on a price is important, but make sure you speak to your Realtor about other details like the possession date, conditional terms, and which chattels or fixtures will be included or excluded with the home.

Listing Agreement. This form is the agreement between a seller and their real estate brokerage. The Listing Agreement forms the basis for drafting an offer on a home and includes directions about negotiations.

Find more information about essential forms and using a Realtor by visiting www.orea.com.

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