FAQ: Service Agreements with Manitoba Realtors

BY STEPHANIE BARON, REALTOR
January 19, 2022

Effective January 1, 2022 it is now required by law in Manitoba to have a Service Agreement signed between Realtors and buyers or sellers before any services can be provided to them.

This includes sending property listings, booking showings, providing a market evaluation, advising on pricing, etc.

This agreement was created by the Manitoba Securities Commission with the goal of helping buyers and sellers better understand the services Realtors promise to provide to them.

What is a Service Agreement?

The Real Estate Trading Service Agreement is a contract between Realtors and their clients, or potential clients, that outline the services that are promised to be provided. The main reason behind these agreements is to ensure that you understand what the agent you are working with has agreed to do for you. You have no obligation in the agreement and you have the liberty to terminate the agreement with a written notice, unless otherwise specified.

Why is my Realtor asking me to sign this?

Simply, because we have to! It is now government mandated and required by law that this agreement be signed by all parties involved as an acknowledgement of services before services can be provided. If you ask your Realtor to send you properties listings,book showings, research comparable sales in order to advise on appropriate purchase price, write an offer for you, etc.. you will have to put pen to paper first.

What does signing this agreement mean to me?

By signing an agreement with your Realtor, this means you can freely use their services that were promised to you. That really is all that it means, as you have no obligation and you have the right to terminate the agreement if that is what you and your Realtor have agreed upon. It is basically a pledge from your Realtor to you as their client to promise to provide the services outlined in the agreement.

Can I cancel this agreement?

Yes. Unless otherwise stated in the contract, you have the right to terminate the agreement. You can do this by written notice, which can be as easy as an email stating that you no longer wish to use their services.

Is there a cost to me to sign this agreement?

As a buyer, there is no cost to you to sign this agreement. Buyers do not pay for services from their Realtor unless another arrangement has been agreed upon. As a seller, the only cost is whatever remuneration you have agreed to in the listing contract to be paid to your Realtor after the sale of your property has been finalized, or whatever arrangement for remuneration has been agreed upon.

I don't feel comfortable signing a contract, are there other options?

Moving forward as of January 1, 2022 if you are looking for a Realtor's assistance and professional guidance to purchase or sell a home, there is no way around signing an agreement. Find a Realtor you trust and ask questions. Your Realtor should make you feel comfortable and build trust to move forward with you in your buying or selling journey.

What if I am not ready to commit to one Realtor?

The Service Agreement is not an exclusive agreement, unless otherwise stated. So you can actually sign a Service Agreement with more than one Realtor and you can choose the length of time the agreement is valid for. It can be as short or long as you need it to be.

As always, feel free to reach out to us at The Moore Group. We are open to answering any questions or concerns you may have.