OREA Commission Agreement: What You Need to Know
Whether you’re buying or selling a property, it’s important to understand the real estate commission agreement. This is a legal agreement between you and your real estate agent that outlines the terms and conditions of the commission that will be paid upon the sale of the property. In Ontario, the Ontario Real Estate Association (OREA) provides the standard commission agreement form that is used by real estate agents throughout the province.
Here’s what you need to know about the OREA commission agreement:
What is the OREA Commission Agreement?
The OREA commission agreement is a standard form that outlines the commission that will be paid to the real estate agent upon the sale of the property. It covers a number of important details, including the commission rate, the duration of the agreement, and the services that will be provided by the real estate agent.
Who Uses the OREA Commission Agreement?
The OREA commission agreement is used by real estate agents and their clients when they enter into a listing agreement. This agreement allows the agent to market the property and find potential buyers, and sets out the terms and conditions that govern the relationship between the agent and the client.
What’s Included in the OREA Commission Agreement?
The OREA commission agreement covers a number of important details, including:
Commission rate: This is the percentage of the sale price that the real estate agent will receive as commission.
Duration of the agreement: This is the length of time that the listing agreement will be in effect.
Listing price: This is the price at which the property is listed for sale.
Services provided by the real estate agent: This includes the marketing and advertising of the property, arranging showings, negotiating offers, and providing advice and guidance throughout the transaction.
What are the Benefits of the OREA Commission Agreement?
There are several benefits to using the OREA commission agreement, including:
Standardization: The OREA commission agreement provides a standardized form that is used throughout the province, ensuring consistency and clarity in real estate transactions.
Clarity: The agreement clearly outlines the terms and conditions of the commission, making it easier for both parties to understand their obligations and responsibilities.
Protection: By using the OREA commission agreement, both the real estate agent and the client are protected in the event of a dispute or misunderstanding.
The OREA commission agreement is an important part of any real estate transaction in Ontario. By understanding this agreement and working with a reputable real estate agent, you can ensure a smooth and successful sale or purchase of your property. If you have any questions about the commission agreement or the real estate process in general, don’t hesitate to contact a knowledgeable real estate professional.