There are several additional terms defined in the directive: account of commissions, trust commission and fiduciary commission: 8. What should be included in an agreement? Answer: Start date, expiry date, benefits to be provided, commitments to be paid, amount of commission/compensation, other agreed terms/services. 1. I find some terms used in real estate confusing. Could you explain some of the typical ones? Answer: a. Declarant – a person or broker, under the Real Estate and Business Brokers Act 2002 (REBBA 2002) b. Seller, broker – persons registered under REBBA 2002 who provide services to a consumer on behalf of a broker v. Broker Record – a broker designated as responsible for a brokerage d. Representation Agreement – an agreement that describes how a broker is represented by a buyer or seller e. Brokerage – real estate company f.
SPIS – Seller Real Estate Information Statement. A statement filled out by a seller. This is not a mandatory form. Ask your seller or broker on this form. This insurance against commissions must only meet a right if the commission is protected under an agreement to protect the trustees. The insurer therefore pays here only if the commission was held in trust. This means that the trust agreement must be respected in the same way as the prepayment. In most cases, the funds will be classified as a bankrupt trust fund and, finally, when the distribution takes place, those funds will be transferred to the insurer.
(c) Commission Trust Account – a trust account held with a Canadian chartered bank or trust company and referred to as the “commission trust account.” The commission trust account is used only for the receipt and payment of commission trust funds and held separately and with the exception of the statutory receiver account, which must manage mediation for clients` money. The agreement should also address payment priorities: there are provisions in the Real Estate and Business Brokers Act, 2002 for the creation and maintenance of a Commission trust account. The issue of commission insurance is dealt with under Ontario Regulation 579/05 and, in fact, it is the only clue. In general, the same regulation deals with “other trust goods” and determines the type of records to be kept. It does not specifically deal with the commission trust account. 13. Is there a “cooling period” to terminate a replacement agreement? Answer: 24. When will I receive my purchase and sale agreement? Answer: You must obtain a copy if all parties have signed the agreement.