Ever wondered what happens when a buyer tries to ditch their Buyer Representation Agreement (BRA) and buy a home through another brokerage? Are you still entitled to your commission, even if they say they were unhappy with your services? Well, wonder no more! A recent case from April 2024, Sun v. Mani, highlights the importance of the BRA and what happens when buyers don’t stick to their side of the deal.

The Case

Sean Sun, a broker from Homelife Landmark Realty Inc., signed a BRA with Madhan Kumar Mani and Rajappa Gnanasambandam Shiva Sakthi, giving him exclusive rights to act as their agent from May to August 2021.

Despite the BRA, Mani and Shiva Sakthi signed a new BRA with another realtor and purchased a home on July 30, 2021. The defendants claimed they were dissatisfied with Sun’s services, alleging he pressured them to look at homes beyond their budget.

Frustrated and feeling misled, they decided to part ways with Sun. Instead of discussing their concerns or notifying Sun about ending the agreement, they simply stopped responding to his messages and cut off all communication.

The Verdict

Judge Dennis Ong ruled in favour of Sun, confirming that the BRA was legally binding. The court awarded Sun $22,797.75, covering the commission and HST, plus $750 in costs.

The defendants argued they were not satisfied with Sun's services and believed they had effectively ended the BRA by stopping communication. Sun argued that the BRA was signed in good faith and clearly entitled him to a commission if a purchase was made during the representation period.

The judge found that the BRA was a clear and enforceable contract. The judge noted that there was no written evidence showing that the defendants had terminated the BRA or that Sun had agreed to such termination. The judge emphasized that a signed BRA is a legal commitment and that the defendants were obligated to honour the BRA, which included paying Sun his commission for the purchase made during the representation period.

Upshot

This case is a great reminder that ghosting your realtor isn’t just bad manners -it’s bad business! Contracts are contracts, and a signed BRA is your safety net. So, keep those lines of communication open, and make sure all agreements are crystal clear. Remember, a little paperwork can save a lot of headaches down the road!

Let’s Talk

If you have questions about Buyer Representation Agreements or need assistance with your real estate transactions, then let’s chat! Contact us at [email protected] or 519-997-3775.