Buyer Brokerage Agreements Mandatory January 1, 2017
Starting January 1, 2017, the Nova Scotia Real Estate Commission will require all brokerages to sign a brokerage agreement with buyers who agree to be clients of their brokerage. This move is aimed at enhancing consumer protection by improving transparency between the brokerage and buyer by clearly outlining expectations at the time they agree to work together.
The purpose of buyer brokerage agreements (whether common law or designated) are to:
- describe the role and services of the brokerage and, if applicable, the designated agent
- outline the obligations of the client, the brokerage and, if applicable, the designated agent
- explain the extent to which personal information can be shared
- establish a clear commencement and expiry dates for the relationship
- address conflicts of interest
Mandating these forms is important from a consumer perspective as it helps a new buyer-client understand what the brokerage obligations will be and how the brokerage will be paid. From a licensee’s perspective, mandating Buyer Brokerage Agreements gives brokers the ability to more easily maintain stock of their buyer clients and ensure compliance of the terms of their relationship with the brokerage. Finally, from a regulatory perspective, it is just as important to have all client relationships clearly expressed in writing for buyers as for sellers.
Brokerage agreements have historically been mandatory for sellers, and buyers agreeing to work with designated agency brokerages have been using brokerage agreements in Nova Scotia for nearly ten years. The Commission’s Board of Directors felt that this move is part of the natural progression of our industry, and follows suit after provinces like Alberta.
Learn more about Buyer Brokerage Agreements below:
Sheldon McLeod Show, News 95.7 - January 3rd, 2017, 12:30 segment (starts at 14:40)
Real estate buyers now need brokerage agreements in NS - The Chronicle Herald - January 4th, 2017
View the brokerage agreements for Buyers:
- Special Edition Newsletter
- Buyer Brokerage Agreement Info Sessions and Common Law Commercial Practitioners