If you want to hire a Markham real estate agent to help you find your new home, you may be surprised to find that they will want you to sign a contract called a buyer's broker agreement before they will provide you with their services. Contracts are a way of laying out exactly what responsibilities each party has and of punishing those who don't live up to their responsibilities. Never sign anything you don't understand. Here are some common things that might pop up in your contract.

Exclusive and Non-Exclusive

Your contract with your Oakville real estate agent will either be exclusive or non-exclusive. When you sign an exclusive agreement, you are promising that you will use this agent and only this agent to help you buy your home. That means not only can you not hire another agent, but you can't go looking on your own, either. In a non-exclusive agreement you can create a competitive atmosphere between multiple realtors for your business.

Procuring Clause

In a realtor's contract, the procuring clause is the one that states that the agent who helped the buyer purchase the home is the one that gets the commission. It sounds pretty straightforward, but what this means is that if you've been bouncing around between Etobicoke real estate agents, having one find you the house, another take your offer to the seller, and another to renegotiate, who gets the commission? You might have a fight on your hands over it if you're not careful.

Consent to Represent More Than One Buyer

If you sign a contract that includes consent to represent more than one buyer, you are telling your real estate agent that it's okay for him to represent another buyer wanting to purchase the same house from the Spokane, WA real estate listings as you. This can give the realtor the ability to create a bidding war between his two clients, which will increase his commission, so it's not a good idea to sign this.

Termination

Real estate agents in Toronto won't bring this up on their own, but you should ask for a clause that lets you out of your contract if you find the relationship isn't working out. If you don't have this clause, you might end up paying a fee to break your contract if you're dissatisfied with the agent's service. Generally speaking any realtors who insist on a right to represent more than one buyer or won't give you a termination clause are not good choices.