Archives

All posts for the month April, 2012

OREA Form 310 – Buyer Customer Service Agreement – For Use When the Buyer is Not Represented by the Brokergage

General Use: This form is use when a Buyer is not a Client but rather a Customer. This form states that a buyer is a free agent. For more information about this form in plain English. http://www.greatrealestateadvice.net/OREA/Form310.pdf

www.GreatRealEstateAdvice.com

The Ontario Real Estate Association or the OREA Real Estate College has not authorized, approved, endorsed nor supports any examination assistance products or services offered by us or through our website and materials.

OREA Form 300 – Buyer Representation Agreement – Authority To Purchase and Lease

General Use: This Form is a contract between a Buyer and a real estate company that gives real estate company permission to act on the Buyer’s behalf in the purchase of a property. Assuming the Buyer is a Client of the real estate company.

This form is probably the most dreaded form for a real estate agent if not explain properly. The purpose of this form is two ways. To protect the buyer and to protect the realtor acting on behalf of the buyer.

Protect the buyer: A buyer can be represented by a real estate broker in two ways. Either by a customer service or client service. Main difference between the two are the following:

  • Customer Service: If a broker represent a buyer as a customer a broker can only protect a buyer up to a certain point. Example when it comes to confidentiality, a listing broker (realtor for the seller) may ask a buyer question that can be use against a buyer in the negotiation process such as motivation and plans if a buyer is not being represented by a real estate broker. In other words a buyer is a free agent!
  • Client Service: When a broker signed a buyer as a client a broker takes a full responsiblity of that buyer within the whole nine yards. Protecting the buyer’s confidentiality is one of them and ethically protect and defend their best interest at all times. Also note, once the form is signed by both parties it is a legally binding CONTRACT. A buyer must honor and use a realtor within a given time frame specified in the form. Therefore a commission must be paid to the broker whom the buyer signed a contract with. If a buyer uses different realtor aside from what is stated in the contract, the realtor who signed the contract has a right and is entitled for the commission made during the transaction.

Protect the Realtor: Secure the realtors compensation or commission from the transaction. Once this form is signed it will give the realtor a security and confidence that a buyer will use that realtor to help them find their dream home. The advantage of working with realtor is that a prudent realtor is trained to handle and to prevent a legal problem that may arise before, during and after the transaction. Most importantly a realtor are more likely to pick up the phone and answer a buyer’s phone call at anytime in the day knowing that there is something in it for them.

Note: The most important section of this form is the date, signature and geographical location. For more detail explanation of this form in plain English.

Click the link below to view the form.

http://www.greatrealestateadvice.net/OREA/Form300.pdf

www.GreatRealEstateAdvice.com

The Ontario Real Estate Association or the OREA Real Estate College has not authorized, approved, endorsed nor supports any examination assistance products or services offered by us or through our website and materials.

OREA Form 201 – Seller Customer Service Agreement – Commission Agreement For Property Not Listed

General Use: This Form is a contract between a Seller and real estate company that gives the real estate company permission to act on the  Seller’s behalf when they offer their home for sale in the open market. A written agreement is necessary in order to secure commission and to ensure compliance with the REBBA (Real Estate Business Brokers Act) Code of Ethics.

Recently OREA introduce a form 202 to suffice this form with the increasing popularity of FSBO for sale by owner. In order for an agent and/or salesperson to be compensated for showing and selling a property that is not listed by real estate broker in other words homeowner listed the property for sale by themselves without the help of a realtor this form must be used in order to secure a commission for the realtor who brought a buyer to the seller. For more detail explanation of this form in plain English.

Click the link below to view the form

http://www.greatrealestateadvice.net/OREA/Form201.pdf

www.GreatRealEstateAdvice.com

The Ontario Real Estate Association or the OREA Real Estate College has not authorized, approved, endorsed nor supports any examination assistance products or services offered by us or through our website and materials.

Form 200 – Listing Agreement – (Authority to Offer for Sale)

General Use: This Form is a contract between a Seller and a real estate company that gives the real estate company permission to act on the Seller’s behalf when they offer their home for sale in the open market. A written agreement is necessary in order to secure commission for the broker and ensure compliance with the REBBA (Real Estate Brokers and Business Act) Code of Ethics.

Section 4: Representation. This section must be explain to the seller carefully prior to signing this form. For a detailed explanation of this form in plain English.

http://www.greatrealestateadvice.net/OREA/Form200.pdf

www.GreatRealEstateAdvice.com

The Ontario Real Estate Association or the OREA Real Estate College has not authorized, approved, endorsed nor supports any examination assistance products or services offered by us or through our website and materials.

OREA Form 101 – Agreement Of Purchase and Sale – Condominium

General Use: The Agreement of Purchase and Sale Condominium Resale is the document that is used to state the Buyer’s desire to purchase a condominium property, and to negotiate the terms of the sale. This document works almost the same way as the regular Form 100 except this form pertain specifically for condominium resale only.

Most important part of this form is the deposit section and the initial and signature of both parties involved in the transaction. For more information and explanation about this form in plain english explanation. http://www.greatrealestateadvice.net/OREA/Form101.pdf

www.GreatRealEstateAdvice.com

The Ontario Real Estate Association or the OREA Real Estate College has not authorized, approved, endorsed nor supports any examination assistance products or services offered by us or through our website and materials.

Form 100 – Agreement of Purchase and Sale

General Use: The Agreement of Purchase and Sale is the document that is used to state the Buyer’s desire to purchase the property, and to negotiate the terms of the sale.

This is the form commonly use in real estate transaction today. It is important for the buyer to understand this form prior signing this document. The most important part of this form is the Deposit section and all the signature needed to bind this contract. Both parties must have a copy of this form document upon signing it. See a detail explanation of this form in plain English.

http://www.greatrealestateadvice.net/OREA/Form100.pdf

www.GreatRealEstateAdvice.com

The Ontario Real Estate Association or the OREA Real Estate College has not authorized, approved, endorsed nor supports any examination assistance products or services offered by us or through our website and materials.

EquifaxWhat is a Beacon or Credit Score? A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureaus such as equifax.

Step1:  Find out what’s in your credit report

Before doing anything else first identify what is it you need to improved  on. You can do this by acquiring a snapshot of your current credit history from equifax.

Things you are looking for are outstanding debts and existing credits you may have on your file. It is recommended to do this yearly as part our yearly finance maintenance check to find anomalies that can hinder a good score. Most of the time we tend to forget about old expired credit cards that we don’t use and think that it is automatically closed. It is not! In order to fully discharged a credit against your credit history and so that it doesn’t damage  your score it must be manually requested to be closed from the financial institution end in order to closed it off entirely and have the financial institution update it with equifax. Only then it will be discharged against your credit history!

You are also checking for anomalies such forgotten small bills such as $25.00 that you may have forgotten to pay. Believe it or not this can bring a significant damage on your credit worthiness. This have the same repercussion as having a late payment of a loan worth of $1000. Other things to pay attention to is other people using your credit without you knowing it.

Step 2. Build your credit report

Now that you found out what’s in your credit whats next and how to improve it?

The easiest way to improved a credit worthiness is to have one or two credit cards open. Credit cards are not bad to have and is a good tool to use to improve credit worthiness by paying your bills on time. They are the easiest credit to acquire and provide significant benefits. All credit cards are reported on a monthly basis to the reporting agencies such as equifax which is not the case for other revolving credit such as line of credits.

How to improve your score? Use the credit card instead of using cash and use them regularly such as paying for gas, grocery, eating out and for all your daily errands and most importantly for large purchases. The trick that I learned from a banker and I am not suggesting you do it but it is available is to purchase a large expensive item such as TV’s to max out your credit card and return it after two days for a full credit refund. When the financial institution sends out a monthly report of your credit history to the reporting agency it will show that you are in capable of managing and paying your bills on time.

Step 3. Maintain a good credit report

While I am telling you to use your credit cards on a daily basis, you must keep in mind that you will have to pay the full balance when your bill comes at the end of the month. This is the TRICK to improve your FICO Score; use your credit as often as you can while paying the entire balance at the end of the month. A late payment on a $10 bill has the same impact on your credit bureau as making a late payment on $1000 credit. By paying it on time the credit score will drastically improve.

 

GreatRealEstateAdvice.com

Welcome to our new home!www.GreatRealEstateAdvice.net

Great Real Estate Advice has evolved and are now moving to a new direction. A bigger and brigther online exposure is now on the horizon thanks to Google Adsense!

As an owner and creator of GREAT REAL ESTATE ADVICE it is my intension to partner up with Google Adsense to create a wide range of exposure online. Aside from generating a partial revenue by partnering up with google through advertisement it is my intension and my priority to keep writing a thought provoking real estate material to serve and educate others in need. With the success of www.GreatRealEstateAdvice.ca reaching more than 2,000 hits and growing in just about five months I decided to keep the blog intact however it will no longer be updated. It is now migrated to a new hosting server www.GreatRealEstateAdvice.net

Please continue supporting me in my venture by following me on www.GreatRealEstateAdvice.net

Listen. Educate. Empower. (Alex Macale)

Protect Your PrivacyThe Competition Bureau is taking action that would force TREB to abandon the safeguards in the MLS® system and make personal information available on the Internet. Doing so, though, would threaten the privacy rights of GTA consumers.

But what do Ontarians think?

TREB has released the results of an Angus Reid poll. The vast majority of Ontarians clearly expressed their opposition to abandoning the safeguards of the current MLS® system.

When asked about the Competition Bureau’s actions, Ontarians expressed their concern:

75% of Ontarians believe that personal information such as name and final sale price should be kept confidential by REALTOR® professionals. Commissioner Aitken wants to release this information.
70% of homeowners do not want their personal contact information released to the public. Commissioner Aitken wants to release this information.
67% of Ontarians oppose any measure to make personal contact information such as name and address available to others who are not subject to a professional code of conduct. Commissioner Aitken wants to release this information.

These results are overwhelming. But that’s no surprise given the consequences if the Competition Commissioner gets her way. If she does, consumers’ private information, which is currently protected on our secure MLS® system, would become freely available on the Internet, such as:

Seller’s name and address
Property floor plans
Sensitive property access information
Negotiated sale price
Mortgage details
Ontarians clearly oppose having this information becoming freely available on the Internet. I agree.

If Commissioner Aiken gets her way, Ontarians won’t. But privacy matters. That’s why TREB is standing up for GTA consumers. Click here to learn how you can take action to protect privacy.

GreatRealEstateAdvice.com

Tips For Hiring ContractorWhether you are looking to have your home windows replaced, new siding installed on your garage or a pool built for the summer months ahead, it’s always important to find a home contractor that you can trust. The Better Business Bureau recommends following this smart shopper checklist before choosing a contractor for your home appointment.

Be picky and have lots of options. Let’s face it a contractor will always go for a big fish to fry so you have to make sure that after you hand in a deposit that they will actually show up to work the following day and not to the next big project.

Make sure they are certified and insured. You may want to deal with a reputable contractor that can guarantee a proper job done according to the standards. Sometimes it is impossible to chase after a contractor who is not certified and most importantly it is hard to dispute it in the court of law.

Get everything in writing. The most important piece of information in the contract is the starting and the ending date of the contract. The reason for this is because in the legal dispute it is hard to prove in the small claim court a valid contract without having a starting date and ending date. A contractor may not wish to complete the project on time without a specified date and the judge are more likely not to intervene in a poor written or invalid contract. In Ontario it is a challenge to sue a contractor and some will say it is a waste of time going after a contractor!

Remember the rule of thirds and follow it. A rule of thumb is to pay one-third at the start of the project, one-third when work is 50 percent completed and one-third after completion and most importantly keep the receipt as a reference.

Always remember that you may pay a higher premium for a contractor that has something to lose for not doing  it right and in contrast you will end up paying more to take a contractor to court if you cut corners! 

GreatRealEstateAdvice.com