Property Brokerage Services in Canada: Realty Bang real estate investment group consists of Canada’s largest property brokerage team, selling billions of dollars of assets and portfolios annually. With an outstanding execution record, decades of property market experience, and a focus on long-term thinking, we put the needs of our clients first.
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What is a property brokerage?
Some people may say that they are agents. Others may use the term “realtor”. These are different types of tasks. A real estate agent should work for property brokers. They cannot work on their own. They are also required to pass state requirements and obtain a real estate license. In some states, an agent may be subject to only one brokerage.
Brokers can work for themselves, build a real estate brokerage firm, and hire real estate agents. They can also deal with other brokerage firms. But, due to the nature of their occupation and work, state requirements can be difficult. For example, they need to clear the brokerage exam.
Contrary to popular belief, the term realtor is not universal. Realtor trademark is used by those who are members of the National Association of Realtors (NAR). However, members may be different professionals. These include sales agents and transaction brokers. They have to live according to the code of conduct and other rules of the union.
License and insurance
Property brokerage also depends on the state. The rules on a real estate broker’s license may vary. States can also specify the number of education hours and meet the continuing need for education.
Brokers should also have errors and commission insurance (E&O). In the event of an error or omission by the broker or one of its agents, the client may sue. A good E&O policy will cover some of the costs from a lawsuit and/or settlement.
Property brokerage duties
A broker may work for an official or residential seller and/or buyer. Duties vary depending on the type of your broker. Most brokers are agents of both seller and buyer. When another agent or broker sells assets from a different broker or agent, the two agencies split the commission.
Some brokers may be agents. They represent both buyer and seller, however, in some states, dual agency is not legal.
- The brokerage firm can be dual if:
- You are trading a property, and a buyer communicates with you to show the property. You are working for both buyer and seller.
- Both brokers or agents of the same real estate brokerage represent the buyer and seller respectively.
When a state does not allow the dual agency, the real estate broker works as a transaction broker. They do not represent the buyer or seller but facilitate transactions through the exchange and clarification of documents.
Duty of a seller Broker
A seller’s broker may have the following responsibilities:
- Properties listed for sale on multiple listing services (MLS)
- Advertise the property on social media and other places to attract as many potential buyers as possible
- Advising the property seller to prepare the property to show listings and pictures
- Sharing listings with other real estate professionals to purchase property
- Arranging time between buyer’s agent or broker and seller
- Reporting any feedback and/or result to the seller
- Send offer to the seller
- Assisting the seller with offer negotiations
- Executing the purchase contract between the buyer and seller
Once the buyer and seller confirm the investment contract, the seller’s broker works on account of the seller. These include distributing documents and explaining all disclosures and transactions related to the sale. The broker also works with the seller through the closing and ensures that it runs smoothly.
Duty of a Buyer Broker
A buyer’s broker serves the buyer of a property and gives the following services:
- Showing new properties to buyers
- Finding properties for buyers that meet their needs or preferences
- Assisting the buyer in making an offer and making a purchase contract
- Negotiation on behalf of the buyer, as per buyer’s wish
- Once the agreement is reached between the two parties, the transaction is ensured smoothly.
- Dealing with the buyer on documents required for the transaction
- Assisting in due diligence by coordinating inspections working with real estate agents
Once brokers are agents, the latter usually take on the above responsibilities. They depend on whether they are sellers or buyers’ agents.
- Verification of all licenses of agents and associate brokers
- Providing additional training for agents
- Managing employees including agents
- Maintaining a website for marketing
- Providing marketing resources and other services for agents
In return, the broker receives a commission of the agent’s work.
Broker Commission and Work Environment
In recent years, agents have generally demanded a 6% commission on the sale of properties. Today’s technology is changing this percentage. These days brokers have lower overhead costs. They can drive certain aspects of the business, such as marketing, online. In return, they request lower fees from buyers and/or sellers. Agents also receive lower commissions.
In some cases, agents work in fancy offices with their vehicles. This can make them more flexible. They can meet customers or produce documents on the go. The system further saves them money.
When an agent decides to work with a broker, both parties will agree on the percentage of commission the broker will receive. The latter also decides how much time an agent needs to participate in administrative duties.
Bring value to customers
Your clients can also define property brokerage. In this case, it will be according to the value of your firm. There are different ways to increase your value:
- Reduce overhead by avoiding attractive offices and franchise fees. Instead, run a business from a smartphone and a small office.
- Consider automation. This allows you to efficiently run a small back-office team.
- Allow your agents to provide white-glove service by giving the commission more deductions. It also helps to bring in more customers. If customers see better service, they are more likely to refer their real estate brokerage to their friends and acquaintances.
- Create a mobile office by allowing agents to search for listings, market themselves, network with each other, network with each other, communicate with customers with the use of mobile applications.
- Focus on branding with digital marketing. Buyers are increasing their footwork on the Internet. Each agent must have a branded website that ranks high on search engines. They may also need a personalized app that they can share with customers. Allow agents to use social media to their advantage.
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