SERVICE AGREEMENTS
Service Agreements (SAs) are new to Manitoba’s Real Estate industry with the introduction of the updated legislation known as the Real Estate Services Act (RESA) effective January 1st, 2022, which replaced the Real Estate Brokers Act. RESA requires registrants to itemize the services that they will be providing for the client in a service agreement such as showing properties, advising on appropriate price for real estate or engaging in real estate transactions.
There are 7 sections in the Service Agreement:
1. Parties in Agreement - Brokerage & Client
2. Description of Services to be provided checked off
3. Dates the Agreement Starts & Ends
4. Termination Terms
5. Terms of payment or compensation to the brokerage for providing services
6. Other Terms - Exclusivity to the brokerage can be added here
7. Signatures of Both Parties
It is important to note an Exclusivity Clause in the agreement. For example, Section 6 can include something like during the term of this service agreement RE/MAX Professionals shall be the exclusive provider of services set out to you in Section 2 (the services to be provided to you) and therefore, you agree not to seek or accept similar services from another brokerage or service provider until the agreement expires or can conclude based on the dates in Section 3. This is preferrable if you want to continue working together as it eliminates another agency agreement that you would have to fill out and sign.
My recommendation? Understand what you’re signing! If you are new to your home search and would like more information please contact me at kpottinger@remax.net or go to the Manitoba Real Estate Association for a quick video and info on the Real Estate Services Act: https://youtu.be/zYTeSvZlDng and https://realestatemanitoba.com/promises-on-paper.
