As a Buyer, once having met me, or another Realtor, and having discussed signing the Buyer Representation Agreement, the Buyer is one step closer to Home Buying in Toronto Made Simple: Part 2. The Home Buying in Toronto process is now established where both the Buyer and Realtor are contracted to work together.

Another form that should also be signed at this time is the Working with a Realtor. This form basically explains the roles of the different types of agency relationships. There is Seller Representation, where the Real Estate Brokerage represents the Seller, and must do what is best for the Seller. Buyer Representation, where the Real Estate Brokerage is representing the Buyer and must do what is best for the Buyer. Multiple Representation where occasionally the Real Estate Brokerage represents both the Buyer and Seller. Both parties must consent to this arrangement in writing. In this instance, the Real Estate Brokerage must do what is best for both the Buyer and the Seller. And last, but not least, there is Customer Service, where a Real Estate Brokerage may provide services to Buyers and Sellers without creating Buyer or Seller Representation. This type of arrangement allows for the Real Estate Brokerage to provide many valuable services in a fair and honest manner to the customer. This form goes a little bit further to explain “Who is working for you” and the relationship between the Real Estate Brokerage and the Buyer and/or Seller. And it also discusses the Code of Ethics, which is regulated by Real Estate Council of Ontario. Typically, the Buyer and Seller read this form and intial and sign the area that most describes their relationship with the Real Estate Brokerage. The Buyer is signing that they have read and understand the Working with a Realtor- the Agency Relationship brochure. As a Buyer, this brochure establishes the relationship between the Buyer and the Real Estate Brokerage, which is further explained in the Buyer Representation Agreement that has also been signed. Usually the Working with a Realtor is signed first, and then the Buyer Representation Agreement is signed. We are now closer to Home Buying in Toronto Made Simple: Part 2

Once these two forms are completed, I move on to the next area that needs to be addressed. The last form that is filled out is the FINTRAC form, which is short for the Financial Transactions and Reports Analysis Centre for Canada. The purpose of this particular form is to comply with the Canadian legislation called The Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which is designed to help detect and deter money laundering and the financing of terrorist activities. The FINTRAC form requires Realtors to document the personal information of all parties to a Real Estate transaction. As a Buyer, you will be required to provide identification such as a driver’s licence, passport, or photo id such as a health card. These will be recorded on the form by the Realtor, and when you make an offer on a property, the account information of the bank where the deposit money is withdrawn is also recorded. This form is mandated by the Federal Government legislation and must be complied with.

The next step is to determine the price range that is affordable for the Buyer. My next Blog will continue with Home Buying in Toronto Made Simple: Part 3. If you have any questions about Home Buying in Toronto, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com.