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Court Denies Realtor $11,000 Commission

Sanjay Babbar of Sutton Group – Summit Realty Inc. in Oakville was denied his claim to his $11,000 commission in a small claims court on March 27th, for failing to clearly explain the key terms of the Buyer Agency Agreement to his clients.  Sanjay’s claim was that he had spent time explaining everything to Jean Kagemana and Mediatrice Mulcanyandwi, before having them sign a Buyers Agency Agreement and putting in an offer on a house in Milton.  When the offer got rejected, the couple went directly to a builder to purchase a house without Sanjay, after which he sued them for his commission.

The Buyer Agency Agreement is a great tool which allows REALTORS® to work exclusively on behalf of their buyers when finding a property.  However, make sure to fully explain all of the terms of the Buyer Agency Agreement to the buyers to ensure that they understand and initial all of the key paragraphs.  Agents are also told to keep clear notes of everything discussed with their clients.  The basis for Oakville’s Judge Karen Thompson’s decision was that the agent failed to provide a recollection of times, dates and notes of what was discussed from Sanjay’s meeting with Jean and Mediatrice, while the clients did.

[See full article published on Moneyville.ca on April 20, 2012: Click Here]

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