3. Co-operating Brokerage completes Section 3 and Listing Brokerage completes Section 1. CO-OPERATING BROKERAGE- REPRESENTATION: a) The Co-operating Brokerage represents the interests of the Buyer in this transaction. b)The Co-operating Brokerage is providing Customer Service to the Buyer in this transaction.. CO-OPERATING BROKERAGE (If applicable, Co-operating Brokerage completes Section 3 and Listing Brokerage. a) indicates 1. a) in Section 1.) The following option indicates that the Buyer is being represented by a Salesperson from a real estate company. This area also confirms the commission arrangement between companies.
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It could possibly be somewhat more complicated and require disclosure to the Seller as well. The Listing calls for a 5% commission with 2.5% being offered to the Co-operating Brokerage. In order to get the deal done, the Buyer’s agent rolls 4% of the total to the Buyer thereby, retaining only 1% commission, but, the Seller is paying 5%.. This appears in Ontario Regulation 567/05, passed pursuant to the Real Estate and Business Brokers Act, 2002. There is a document called “Confirmation of Co-operation and Representation. It was drafted by OREA and is one of the standard Forms. It was designed to make sure that the parties to a transaction knew which Brokerage was representing.
