How are the coupons issued?
All coupons will be in the form of an agreement between the buyer or seller and the coupon-issuing real estate agent before searching or listing for a home. With a written agreement, you’ll have the security of knowing vital information before buying or selling your home.
FOR BUYERS:
What would be the value of my coupon?
The coupon's value would equal $500 for each increment of $100,000 of the house value, subject to the following restrictions, limitations & conditions.
1. The buyer completes the Buyer Representation Agreement, allowing the coupon issuing agent to represent the buyer in finding a property for them in Ontario.
2. All details regarding the Coupon are included as an additional schedule to the Buyer Representation Agreement.
3. The minimum purchase price of a property to be eligible for a Coupon is $300,000; the maximum is $3,000,000. E.g., if the property's value is $4,000,000, the buyer would only be eligible for a Coupon correlating to a property valued at $3,000,000.
4. The value of the coupon can only be redeemed in the buyer's name as shown on the offer, also called “Agreement of Purchase & Sale”; Coupons can not be redeemed in the name of a third party.
When can Coupons be redeemed?
The buyer’s agent will redeem the Coupon subject to the completion of the property's buying transaction and receiving the commission paid by the seller to the buyer’s brokerage office. Once the buyer’s agent receives their commission check, it becomes the obligation of the agent to redeem the coupon within seven business days from the date of the receipt of the buyer’s agent commission check.
Method of Redeeming Coupons?
The buyer would get a rebate check to redeem the Coupon in the buyer's name, as mentioned in the "Agreement of Purchase & Sale."
What would be the expiry date of the Coupon?
All the Coupons are written and executed as an additional schedule to the “Buyer Representation Agreement.” Therefore, a Coupon's expiry date would also be the same as the expiry date of the Buyer Representation Agreement. Usually, the validity is valid for six months, but it can be extended up to 12 months when the coupon is issued.
Are there any income tax implications?
The value of the Rebate Check may be subject to the recipient’s income tax. We now recommend you consult with your accountant or tax attorney for further information on this matter.
What is buying agent's standard commission?
Most brokerages in Ontario charge the standard commission of 2.5% for seller agents and 2.5% (of the property purchase price) for buyer agents. The buyer’s agent will redeem the Coupon value based on a 2.5% commission rate. If the commission rate is less than 2.5%, the buyer’s agent will disclose the commission rate upfront before offering the property.
Can you offer a Coupon when the property is not listed on your website?
Yes, the coupon-issuing agent may offer a Coupon on a property not listed on our website/MLS, provided the seller is willing to pay the standard commission to the buyer’s agent.
FOR SELLERS:
What would be the value of my coupon?
The value of a selling Coupon equals 50% of the standard selling commission, which ranges from 2% to 2.5%. Once the value has been finalized between parties and included in the Coupon agreement, it becomes legally binding for the seller’s agent to redeem it, subject to the following restrictions, limitations & conditions.
1. The seller signs the Seller's Listing Agreement, allowing the coupon issuing agent to represent the seller in selling a property for them in Ontario.
2. All details regarding the Coupon are included as an additional schedule to the Sellers' Listing Agreement.
3. The minimum sale price of a property to be eligible for a Coupon is $300,000; the maximum is $3,000,000. E.g., if the property's value is $4,000,000, the seller would only be eligible for a Coupon correlating to a property valued at $3,000,000.
When can Coupons be redeemed?
The Coupon will be redeemed automatically upon completing the selling transaction of the property by applying the value of the coupon.
Method of Redeeming Coupons?
The seller's coupon has no cash value and will only be redeemed as a reduction in the listing commission, i.e., up to 50% discount in listing commission.
What would be the expiry date of the Coupon?
All the Coupons are written and executed as an additional schedule to the “Seller's Listing Agreement.” Therefore, a Coupon's expiry date would also be the same as the expiry date of the Seller's Listing Agreement. Typically, the validity is valid for six months but can be extended up to 12 months when the coupon is issued.
What is the selling agent's standard commission?
Most brokerages in Ontario charge the standard commission of 2.5% for seller agents and 2.5% (of the property purchase price) for buyer agents.