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Initial guaranty agreement template

hello everyone it is more important than ever to understand the rules regarding real estate commissions so that you and your clients are protected this year here are answers to some common questions I receive related to Commission's part 1 question 1 can I get paid Commission without a signed B RA or listing agreement without a signed agreement it is very difficult to claim Commission this includes situations where you may have had a signed agreement but the buyer or seller did the deal after expiry of the holdover close clause in most cases in order to collect Commission you will have to prove that you did more than just to introduce the buyer to the seller you will have to demonstrate that you assisted in the preparation and delivery of the offers and that there was at least a verbal commitment to pay Commission make sure you keep a copy of any email or text message that may have been sent relating to Commission at the very least have the party sign the confirmation of cooperation and representation at the time you present the first offer which also confirms that you are acting for them this has been held to be enough to later support a claim for Commission better still don't work with anyone until you have something signed in writing number 2 can a buyer avoid paying Commission even with a signed B RA there have been cases where buyers have tried to avoid paying Commission by saying that the b ra was not properly explained and they thought commission would only be paid on the one property where an offer was submitted but later rejected the buyers claimed that they had no I idea that this buyer representation agreement lasted for six months and they were not even given a copy for their records to succeed develop good habits right now always get the buyers to initial the term even if it is six months or less and then give them a copy if you do it the same way every time it becomes easier to defend against this later some buyers also try to sign the BRE in a corporate name and then buy under a different corporation make sure you get the president or other authorized signing officer for the corporation to personally sign your BRE as well to avoid this from happening similarly get both spouses to sign your BRE to avoid a situation where the spouse who does not sign with you ends up buying the home later and refuses to pay commission 3 can I collect Commission if I am a listing agent the seller accepts the offer but the buyer cannot close the short answer is no the seller will not have to pay Commission even if the seller ends up keeping part of the deposit as compensation from the buyer they still do not have to pay Commission it is important to make sure that all buyers are properly qualified do not be afraid to ask the buyer salesperson if that is the case or whether these buyers are just paying 5% down if you have serious buyers your deals will close if you were representing the buyer and the buyer could not close you could sue the buyer for Commission however if the buyer can't close it is also likely they do not have the money to pay you either number 4 can I collect Commission if the buyer wants to close but the seller refuses to close in this case the listing brokerage can collect commission from the seller as it is provided for in the listing agreement 5 I have to sign the mutual release a brokerage does not have to agree to sign a mutual release but must follow any direction to pay over a deposit to either a seller or buyer if it is signed by both the seller and the buyer by signing a mutual release you the brokerage will forfeit any right you may have to claim commission later six can a seller change their mind about paying the balance of commission just before final closing the answer is no the seller has already irrevocably directed their lawyer in the agreement of purchase and sale to pay any balance of commission before any money is paid to the seller if the lawyer pays the money to the look to the seller instead then the lawyer can be sued personally for the money with my partners at real estate lawyers CA LLP I am now able to close real estate transactions all across Ontario with our 32 offices and free mobile signing service and I appreciate your trust in referring your clients to me if you have any questions about protecting your real estate commission or any other topic feel free to contact me at Marc at real estate lawyers dot CA or by phone toll-free at one 800 five five to nine you