New Service Agreements Will Take the Confusion Out Of Real Estate Transactions
The province of Alberta will soon be implementing a new plan for the real estate industry. In the near future, a written service agreement must be in place for any real estate transaction. Sellers and buyers will have to sign an agreement for representation.
This will provide more consumer protection to home buyers since they will be able to see in writing exactly what services will be provided. In most cases, the agreements between the client and the real estate agent are made verbally.
The new service agreement will be provided in writing and will let the clients know what they can expect from their authorized professional in the industry. It will specify exactly how much the client will have to pay for the services and will list the services that will be provided. The papers will also ask for consent to collect and use personal information given by the client. The client will know how this personal information will be used and will have to sign the form.
By putting this new plan into place it's expected that clients will be more informed. As a result, there should be fewer disputes between agents and clients and less confusion about what is expected.
Something similar was also recently put into place by the provincial government of Manitoba. In that province, a written contract must be signed to cover sales and the contract must stipulate the amount of any commissions and fees. As well, the real estate agent must state whether there are any conflicts of interests present including situations where an agent represents the seller and the buyer. The securities commission in Manitoba can enforce this new legislation and any violators could be fined up to $500,000.A lot of confusions and complications can be handled when things are put into writing. This way, the client is informed and should not expect anything more or less from the agent. Posted by on