First Time Home Buyer Beware – This Sneaky Real Estate Agent Tactic Could Cause You to Go Broke

Inactive Realtors in Ontario have the option to join an Ontario real estate Brokerage that help you keep your license active during your inactive times.  Save on real estate board fees and all your other needless office expenses too.  Park your license with a reputable and successful license holding Brokerage and still earn high commissions on all your sales, if any and your referrals.  Commissions are paid to you ASAP!

There is one more tactic your Real Estate Agent could try to pull on you. It is a simple tactic to catch, but to the first time home buyers, it could prove too overwhelming and it will mean the end of your financial stability.

Signing the waivers early

Waivers is a simple form that the home buyer signs to waive the conditions in the contract. The conditions in the contract, which is usually conditional upon financing, home inspection and appraisal value, protect the buyer from having to buy the house if the buyer conditions cannot be satisfied. The contract usually specified the conditions must be met within a week where the buyer uses that time to find a lender and home inspector to see if the home satisfies the conditions. If and only if the conditions are met, should the buyer then sign the waivers.

Some sneaky agents will try to tell the home buyer to sign the waiver. The Real Estate Agent promises not to deliver the waiver until the conditions are satisfied. Now, this appears to be a stupid tactic that even first time home buyers won’t fall for. So how does the Real Estate Agent trick even a smart buyer to sign the waivers and even further, agree to send the waivers to the sellers?

Here’s how:

1. The moment the home buyer selects a house to buy, the agent will then have to proceed with several contracts to sign.

2. These documents are presented in a complex manner that confuses the buyer. The first couple of contracts, the buyer must really sign.

3. At this point of confusion, the buyer would eventually lose concept of understanding and pretty much, will sign anything because it just appears everything needs to be signed, anyways.

This the moment when the Agent quickly sneaks in the waivers and the buyer without even knowing it, signs it because the buyer becomes unaware of what the document is really about!

Now at this point, the scam is not yet finished because the waiver still has to be sent to the seller.

So how does the Agent trick the buyer into agreeing to send the waivers to the sellers?

Here’s how:

1. The contract will expire in a week. So the Buyer’s Agent only has a week to send the waivers to the sellers.

The first thing the Agent does is calls the lenders and other parties involved early to see how the process to checking the contract conditions is going. By calling early, the lenders and other parties will not be able to claim the property to be purchased is no good. In fact, more often than not, the lenders will actually tell the agent there will always be a way to get the money for financing. The lenders say that really just to comfort the Agent they he is in good hands.

2. Using this confirmation, the agent quickly tells the homebuyer, the lenders are ok and the house is good. The agent then ask if the buyer is would agree to waive the conditions now because the agent would be too busy later on claiming he is on an educational course.

3. The home buyer trusst the agent and sees that the conditions will most likely go through. So to help the Real Estate Agent, the home buyer agrees.

Now, it is done deal. The Buyer’s Agent now has the right to send the waivers to the seller’s agent and the contract is no longer nullable. The buyer must now buy the house. The home buyer may not even know the house was overpriced.

This happens. It happens in Ontario. I am releasing this information because Canadians must know. Quite frankly, orea.ca may not even be aware of it or is not doing anything about it.

Tom http://www.RentBin.ca – post your rental property for FREE

Article Source:

http://EzineArticles.com/?expert=Tom_Loi

Inactive Realtors in Ontario have the option to join an Ontario real estate Brokerage that help you keep your license active during your inactive times.  Save on real estate board fees and all your other needless office expenses too.  Park your license with a reputable and successful license holding Brokerage and still earn high commissions on all your sales, if any and your referrals.  Commissions are paid to you ASAP!

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