HomeFrog.ca is part of the ongoing virtual evolution of real estate transactions in Canada. Our business is to save customers money through a network of real estate agents across Canada who provide cash back rebates for buyers and sellers of new/pre-construction or resale property. It is owned and operated by Maybank Real Estate Ltd., a licensed real estate brokerage based in Toronto, Ontario. The founder of HomeFrog.ca and Broker of Record for Maybank Real Estate Ltd., Brokerage is Rajesh Koli, a real estate broker in Ontario since 1993. We empower the savvy self-driven homebuyer to find their next home and reward their efforts with a rebate. While the agents in our network sacrifice some of their commission, they do not sacrifice service. In fact, these agents have years of experience in the real estate industry and bring a variety and wealth of knowledge to make your home buying or selling experience enjoyable.

How are you similar to other companies?

Maybank Real Estate Ltd. is regulated and licensed by the Real Estate Council of Ontario (RECO) ,whose mandate is “fostering confidence and upholding integrity in real estate transactions”. With the public’s interests in mind, RECO regulates over 56,000 sales representatives, brokers and brokerages in Ontario through many important means such as Code of Ethics regulations, Advertising Guidelines and requirements for Insurance coverage and Continuing Education. http://www.reco.on.ca/site.aspx

How is this company different ?

Rebates are not capped – There are other agents, real estate brokerages and companies which offer rebates when buying or selling real estate however they all impose limits (usually as a percentage) on how much you, as a buyer, can receive. For example, your rebate may be capped at 15% of the referral commission they receive. We take the complete opposite approach by capping our fee at $350 and then shopping your business around amongst qualified, reputable agents to determine who can save you the most money.

We don`t compete with our referral partners – Maybank Real Estate Ltd., Brokerage is registered as a real estate brokerage in Ontario however it is not a member of any real estate board. A real estate board’s membership is composed of local real estate agents and brokers who agree to share information on properties for sale or lease. The vast majority of homes sold in Canada are sold through such real estate boards. As such, our efforts are focused simply on matching up buyers and sellers with agents and not on competing with the services they provide to consumers.

Conflict of interest addressed – When other referral services (which cap your rebate) refer you to an agent how do you really know the true motivation behind the selection of a particular agent? Is it because the agent was the most qualified or is it because the agent was paying the highest referral commission to them? Such information is not typically disclosed to you a consumer. With HomeFrog we are upfront about our flat $350 fee and disclose the total referral commission paid to us.; Again, our interests are aligned with yours – to save you the most amount of money using the most qualified, reputable agent.

How much money will I get?

Generally speaking, this will be determined by the level of interest among real estate agents in your area who are participating in the HomeFrog rebate program. Whatever commission is earned by the brokerage which represents you, you will typically receive anywhere from approximately 25-50 percent of this amount. This range is not a minimum or maximum but a general guideline as what is reasonably possible for us to negotiate. Most property listed for sale allows for 2.5 percent to be paid to selling brokers and most builders of new homes and condos pay 2-5 percent. For example on a $250,000 home, a 2.5% commission payable to the selling brokerage works out to $6250. Assuming the referral fee was 30% you would receive $1525. ($6250 x .30 = $1875 - $350 HomeFrog fee). In any case, you will be advised of the rebate proportion in writing before you put an offer on the home or list a home for sale.

When do I receive my rebate?

After the purchase transaction closes and Maybank Real Estate Ltd., Brokerage, Brokerage receives its referral commission from the brokerage which represented you, we will mail a cheque payable to the legal buyer(s) of the property. Similarly after a sale transaction closes and Maybank Real Estate Ltd., Brokerage, Brokerage receives its referral commission from the brokerage which represented you, we will mail a cheque payable to the legal vendor(s) of the property. The cheque will be sent by Canada Post ExpressPost and we will email you the tracking number for the letter. In case you would like the cheque mailed to a mailing address different from the one on file, please ensure to notify us.

How do I know I will receive my rebate through this program?

Maybank Real Estate Ltd., Brokerage is a licensed real estate brokerage governed by the Real Estate Council of Ontario (RECO). As such, we must conduct business dealings in accordance with the RECO Code of Ethics. We have a contractual agreement with rebate form holders who have followed the instructions. Once you have a signed agreement to purchase or sell a property and you have submitted all the required information, we will issue a letter stating the exact amount of rebate you will receive upon successful closing of the property. Funds for the HomeFrog rebate will come from the commission paid by the real estate brokerage which represented you in the transaction. Ultimately, HomeFrog is a service business whose reputation and future growth potential depends on having satisfied customers to provide referrals to their friends and family.

What’s the catch? How is this all free to me as a buyer?

First of all, there are no hidden charges, refundable deposits or processing fees.

The seller of the home (whether a resale or new construction) is contracted to pay the listing real estate brokerage a commission, lets say for example 5%. Real estate agents don’t charge buyers for their services since they get paid a share of this 5%.

If you don’t have a HomeFrog network agent (ie. By yourself) you will be literally throwing money away and will likely not get a better price by dealing directly with the listing brokerage. If the listing brokerage finds a buyer without the help of another co-operating brokerage, they typically keep that whole 5% which means the seller is still paying 5%, so the seller has no reason to give you a discount just because you don’t have an agent representing you.

If you walk in with a HomeFrog network agent not only do you have someone representing your interests but when we get paid part of the agent’s commission, we give some of it back to you.

Don’t forget the rebate is actually your own money being returned to you: The process begins with your money or the money you borrow to purchase a home. You pay the seller, the seller pays the listing brokerage, the listing brokerage pays the co-operating brokerage, the co-operating brokerage pays a referral to Maybank Real Estate Ltd., Brokerage and then you receive a refund of a some of your own money back to you.

Can I use the rebate towards closing costs, as a down payment or to directly reduce the price I pay for my new or resale home?

No. You will receive a cheque from us shortly after the deal closes after which you are free to use the money for whatever purpose serves you best.

A builder is advertising thousands of dollars in discounts, free appliances and will even pay for my closing costs. Don’t I lose all of this if the builder has to pay you a commission?

No. The builders cannot pick and choose who qualifies for their advertised incentives. All buyers must be treated fairly and equally. You will receive any special deals they are offering in addition to the rebate. There are often times your HomeFrog network agent will know about additional incentives that will save you even more money.

If I’m not working with a real estate agent, can’t I just negotiate with the builder to reduce the price by the amount of commission they normally pay to agents?

This might seem to work but how do you know you’re actually getting the best deal? In other words, what if a real estate agent was able to negotiate the same or higher discount and get you a rebate? By not using a real estate agent the builder simply makes a higher profit on that home or condo. Builders consider the commissions they pay a cost of doing business and such costs are already factored into the purchase price you pay. The real estate community is roughly 50% of the builders’ business to generate sales so it would not be in the builders’ long-term interests to jeopardize this relationship by offering buyers a discount equal to the commission just because they don’t have an agent representing them. Real estate agents give the builder a financially effective means to market their new homes and condos to the public so paying a real estate agent is often cheaper than other forms of advertising and marketing the builder may used.

If I refer a friend to the HomeFrog rebate program, can I receive a referral fee?

No. Real estate sales representatives and brokers registered in Ontario are prohibited from paying referral fees to unlicensed individuals, unless they are a party to the transaction.

If I end up getting a mortgage through a mortgage broker recommended by HomeFrog, can I receive a referral fee?

No, this would not be possible.

Why don’t other real estate agents or companies offer such good rebates?

Consumer Awareness – One reason agents don`t usually offer rebates is because most consumers are not very well informed about real estate rebates – typical buyer concerns surrounding rebates are how they work, where the money comes from, will a rebate affect the price they pay for that next home or are they even legal in the first place? While there is no law on the books in any province which states that real estate agents must offer a rebate, consumers should at least know they exist and have some basic knowledge about how rebates work so that they may make an informed decision when it comes to using an agent that offers a rebate or one that does not.

Overhead - When an agent earns a commission, a portion of it is retained by their employer (the brokerage) to ensure that the brokerage is profitable after covering various expenses such as rent, staffing, marketing/advertising, training and franchising fees. Similarly the agent has his own expenses to cover whether they be business or personal and also wants to maximize the amount retained as his/her income. As such, the highest rebates are available from those agents and companies who are able to minimize such expenses yet remain focused on the core function which keeps them in business - which is providing the best possible customer service and value for the money.

Marketing Flexibility – This is what makes HomeFrog such a useful service for both consumers and agents. It allows consumers to get the highest rebates possible but it also means the agents don’t have to commit to offering such a large discount for all of their clients. The participating agent is willing to accept a lower commission this time around in order to grow his or her business but does not have to be concerned about committing to that discounted rate for clients obtained through their own marketing activities.

How can agents in the HomeFrog network afford to provide such a large rebate?

Reduction in operating expenses - With the growing popularity of the internet, many activities traditionally performed by real estate agents are increasingly being performed by buyers. For example, buyers are able to research neighbourhood amenities and statistics, find properties for sale and drive to neighbourhoods on their own in order to decide where they want to live. Such welcome buyer-initiative reduces operating expenses for agents. In addition, it frees up time for the agent to focus on those activities the agent does best – negotiating contracts, providing guidance on market value and closing the deal. We believe buyers should be rewarded for their time and efforts spent.

Establishing goodwill – Since the real estate market is very competitive, the agents in our HomeFrog network also believe that by offering exceptional value in price and service that they will build a larger base of lifetime clientele.

Higher volume of transactions – HomeFrog network agents are willing to make less money per transaction but this is expected to be more than offset by the increase in the number of transactions.

Time saved by working with buyers who are serious – Many agents do not properly qualify their clients and end up spending far more time than is necessary for clients who are are indecisive in one or more areas – it could be their budget, their choice of neighbourhood, the actual decision of whether to buy or wait or whether to commit to working with a particular agent by signing a Purchaser agency agreement. HomeFrog network agents only work with committed buyers only who are actively involved in the search process and are ready, willing and able to buy within a reasonable time frame.

I don’t want to pay any more than I have to for a home, so I don’t want to use a real estate agent at all. What do you have to say about that?

No matter whether you use an agent or not, you are going to pay the price for the home you purchase based on negotiations. Your advantage in calling us to assist you in purchasing a home is that through our network of HomeFrog network agents, we provide you with professional assistance with the selection of a home, paper work, negotiations, closing details, inspections, etc. and we give you a rebate on top of all that. It pays to use a HomeFrog network agent.

Are real estate commission rebates legal in Canada?

Yes, real estate commission rebates to buyers or sellers are legal in all provinces and territories in Canada, as long as the rebate is paid to the principal(s) that purchased or sold the property. In the case of a sale transaction the rebate can only be paid to the legal vendor(s) of the property registered on title. Furthermore, the Competition Bureau of Canada supports the general concept of real estate rebates as shown through its previous consultations with the Real Estate Council of Alberta: http://www.cb-bc.gc.ca/eic/site/cb-bc.nsf/eng/02236.html.

Are rebates taxable?

The CRA (Canada Revenue Agency) has not addressed this issue through a ruling yet, however we believe they will arrive at the same conclusion reached by the Internal Revenue Service (IRS) in the United States. The IRS ruling 200721013 suggests that real estate commission refunds do not have to be treated as income since the rebate is effectively a reduction in the price of the property being purchased. As such, HomeFrog will not report rebates as taxable income unless future developments in this area conflict or our tax professionals advise us against this policy. Nevertheless we recommend that you consult with an accountant or tax specialist for further clarification.

What properties are eligible?

HomeFrog seller rebates are available for all types of resale residential properties listed for sale through a real estate brokerage. HomeFrog buyer rebates are available for all types of new and resale residential properties offered for sale by a real estate brokerage or builder in which a commission is offered to co-operating/buyer brokerages. Whether you find the property advertised on the internet, or you drive by a for-sale sign be sure to contact your HomeFrog network agent first.

Will every builder work with real estate agents?

We will work with all developers and builders and do not have a preferred builder list. Most builders are highly motivated to find buyers and are willing to work with real estate agents by paying commissions typically between 2 and 5%. This will be evident in advertisements or signs which state `brokers protected’. If you’re not sure if they co-operate with real estate agents contact your HomeFrog network agent and they will verify any information regarding the amount of commission payable by the builder you’re considering writing a purchase agreement with. Your HomeFrog network agent will notify you immediately with what your rebate amount will be.

Are rebates available on properties being sold privately by the owners themselves?

Most owners selling privately are willing to pay a commission to a real estate brokerage which brings them a buyer so in those cases the rebate would be available. If you come across a property which looks interesting, contact your HomeFrog network agent and they will contact the owners on your behalf.

Do I have to use a certain lender in order to qualify for this rebate?

No, you can use any lender of your choice, including lenders offering incentives as part of new construction builder programs. We encourage you to shop around and compare programs and rates. A mortgage broker can be very helpful with such comparison shopping and we would be glad to refer you to a local mortgage broker who can meet you at your convenience and discuss the various options available. Due to their high volume of business they can often beat the bank’s posted rates resulting in greater savings to you in the long term.

Why do I need a lender’s pre-approval letter?

Your benefit: You can save a lot of your own time by only visting homes for sale that you can realistically afford. To plan your future household budget responsibly, its important to know in advance what the monthly payments will be including principal, interest, taxes and insurance. In addition, having such a letter will give more credibility to your offer in the eyes of the sellers and the listing agents who represent them which could give you an edge over other potential buyers.

Your agent’s benefit: A great deal of a traditional agent’s expense comes from just wasting time. There are many people who view visiting homes for sale as a hobby much like going to garage sales. Their sole interest is to be entertained by the agent and see people’s homes and how they are decorated. We are sure you would agree that the potential buyer who has gone through the steps of getting a pre-approved mortgage indicates that they are clearly a serious buyer. By eliminating the casual shopper, agents save an enormous amount of time and pass that savings on to you in the form of a rebate.

Do rebates have to be disclosed to the seller or builder?

No. The rebate is a private transaction between the buyer and his real estate agent. The seller or builder does not need to be notified that you are receiving a rebate.

I am working with another real estate agent and they’ve shown me the home I want to buy. Can I buy it through HomeFrog to get the cash back rebate?

If you already have a real estate agent working with you and they are not affiliated with our program then the HomeFrog Rebate does not apply. The HomeFrog rebate program is not intended to solicit prospective homebuyers who are already under a buyer agency agreement with another real estate brokerage, or prospective homesellers who are already under a listing agreement with a real estate brokerage.

How do you define a `new home’?

A new home is a home under construction, a home to be custom-built for you by a new-home builder or an inventory home that has never been lived in.

What is an Exclusive Buyer Agency agreement?

An Exclusive Buyer Agency agreement is a contract for a specific period of time between a real estate brokerage and a buyer client which states that in exchange for a commission, the agent will work in the best interests of the buyer client for the purpose of finding the right home for the buyer client and negotiating terms to purchase the property that are acceptable to the buyer client.

What are some of the practical benefits to me of entering into an Exclusive Buyer Agency agreement?

Agent will negotiate with your interests in mind – A Buyer agent will provide complete information on comparable sales and formulate an offering price and negotiating strategy to get you the lowest possible price with the best possible terms. Conversely if you deal directly with a listing agent, their job is focused on negotiating the highest possible price with the best terms in favour of the seller.

Avoid undesirable properties or neighbourhoods – Through regular feedback from you, a buyer’s agent would have a clear understanding of what type of property and neighbourhood you would like to live in and those you wish to avoid. With this in mind, a buyer agent will provide all information pertinent to value, market conditions and obvious physical defects or negative aspects which may even result in a recommendation against purchasing a particular property you were interested in. For example, the agent may be aware of illegal grow-ops which were uncovered in the neighbourhood or of proposed developments which could obstruct views or lead to increased traffic.

Legal Protection – A signed, written Buyer Agency agreement is enforceable in a court of law. As such, a Buyer agent is held responsible for his actions and representations so therefore must represent you with utmost faith and loyalty. For example, if you purchased a property and the buyer agent did not disclose known defects (ie they were disclosed by the seller) then the buyer agent and the brokerage they are employed with could be held liable for civil damages by the courts and for fines or license suspension/termination by the provincial real estate licensing agency.

Disclosure of all material facts – Only a Buyer’s agent can reveal information about the seller’s position that would be advantageous to the buyer’s negotiating position. For example the buyer agent may be aware of the reason for the sale or the financial strength of the seller. If you were dealing directly with the listing agent they are not allowed to disclose information which is not in the seller’s best interests.

Here is an overview of Representation Agreements as prepared by the Real Estate Council of Ontario: http://www.reco.on.ca/ConsumerInfo.aspx?section=RepAgreement

How does signing a Buyer Agency Agreement benefit my HomeFrog network agent?

Code of Ethics - Provincial agencies which oversee real estate agents and brokers exist to protect and promote the interests of the public. Signing such an agreement satisfies the agent`s need to comply with provincial Codes of Ethics regulations which typically recommend that real estate agents should explain the various agency relationships which are possible and ideally obtain a signed agency agreement at the earliest practical opportunity - but definitely before an Offer to Purchase is submitted. The purpose of signing such an agreement (and signing that you understand the agreement) is to make clear in writing what legal relationship the real estate brokerage has with the customer or client so that if all parties to the transaction are aware and mindful of their rights and responsibilities, there is far less likely to be any misunderstandings and/or conflicts associated with that relationship and the transaction itself.

Time Management - As you may know, real estate agents earn their income through commissions only; there is no minimum salary unlike in some other sales professions. As such, productive, successful agents must be highly selective in how they spend their time - they must constantly choose between which actions to take and which actions not to take with the end goal being of course to focus their efforts on those activities which will generate income. When a customer signs a Buyer Agency Agreement, it gives the agent confidence that there is a reasonable chance that they will get paid for investing their time, money and efforts into helping someone buy or sell a property. With this in mind, the agent will be much more motivated to provide a higher level of service than if there was no such agreement signed - since in that case, the buyer could end up purchasing using another agent in which case all efforts taken would be considered wasteful and unproductive.

Can I receive a HomeFrog buyer rebate without signing a Buyer Agency contract?

No, this is not possible. In order for the Buyer Agent to disclose information which is considered confidential to the seller, the buyer must sign a Buyer Agency Agreement. In other words, if you don’t have a Buyer Agency Agreement, the agent represents the seller by default and so cannot disclose information considered detrimental to the interests of the seller. A buyer agent acts in YOUR best interests, is able to help you negotiate the transaction and is able to assist so you have as smooth a transaction as possible. For example in Ontario, when you sign an Exclusive Buyer Agency Agreement, you become what is termed as a “Client”. Real estate agents owe Clients the highest level of fiduciary duties: Competence, diligence, full disclosure, obedience, loyalty, confidentiality and complete accounting. Agents shall endeavour to protect and promote the clients’ interests throughout the real estate transaction.

Is there a minimum time period I must enter into a Buyer Agency agreement?

There is no fixed minimum period however typically these agreements run 60-90 days. Also keep in mind you can cancel the agreement at any time if you feel you are not happy with the service being provided by your HomeFrog network agent.

I don’t understand how the person in the builder’s sales office is not representing me when they will do everything from showing me the model home to preparing the contract.

Helping you and representing you are two entirely different things. The on-site agents work for the builder. They owe their loyalty to the builder. They must protect and promote the best interests of the builder. This means getting the highest and best price for the builder. If you confide in the builder’s agent by saying something like “just between the two of us..” they must reveal your true intentions to their employers. They cannot point out clauses in the contract that might not be in your best interests or suggest you offer less or ask for more incentives. Unlike buyer agents, they cannot do anything for you that would be contrary to the legal obligations they owe the builder.

When I call the phone number on a For Sale sign and the listing agent meets me and shows me the property, aren’t they working for me?

No. The same reasons provided above also applies to sellers and their listing agents.

How do I get started working with a HomeFrog network agent?

Simply click on the “Register Now” tab and fill in the form with your contact information and housing preferences. A HomeFrog network agent will contact you within four business days.

Since the HomeFrog network agent is giving up a portion of the commission, will this compromise the level of service I receive?

Absolutely not. Buyers can empower themselves by using the internet to collect detailed information about neighbourhoods and conduct home searches which takes the traditional taxi-driving routine out of your home buying experience. This saves time and money for the agent and allows them to focus on those activities the agent does best – negotiating contracts, providing guidance on market value and closing the deal. The HomeFrog network is comprised of qualified, reputable agents across Canada who work with large, national firms you are sure to recognize. These agents have agreed to participate in our network and we have verified their ability to give top-notch service and support to you. Referrals are an important source of business for any agent and by agreeing to make a little less on some transactions they more than make up for it by an increase in transactions and by growing their clientele base- who in turn may refer more business their way in the future.

How do you qualify the agents who are part of the HomeFrog network?

All of the agents we refer are qualified real estate agents with at least 3 years of experience and a minimum of 15 completed transactions. We want you to be represented by professional, knowledgeable agents AND be able to get your HomeFrog rebate.

Can I use a real estate agent of my choice?

Absolutey. Keep in mind however that not all real estate agents will choose to participate in the HomeFrog rebate program. If there is a certain agent or list of agents you have in mind, please forward this information to us by email and we will contact them to confirm if they are interested in joining the HomeFrog network and what rebate portion they are willing to share. Ultimately, it is your choice which agent you choose to work with regardless of whether or not they want to participate in the rebate program.

I found a new home or condo development which interests me and I am interested in buying. What’s my next step?

To be eligible for the rebate you must not have visited the sales office on your own and registered independently nor can you have an active purchase agreement with another real estate brokerage. The first step is to conact your HomeFrog network agent. They must accompany you the first time you visit the builder’s sales office. Your agent will formally introduce you to the builder and will register your name. This ensures that a commission will be payable after closing to your agent from which you will receive your rebate.

If I come across a house listed for sale by a real estate brokerage and I want to get a rebate, how do I arrange to see the property?

Once you register on the HomeFrog website, a local real estate agent will be in touch with you shortly thereafter and they will schedule an appointment for you to view the property. Remember that your HomeFrog network agent is always available for you as needed. You are encouraged to ask as many questions as possible as we want you to be sure and comfortable and truly ready to purchase your next home. We want to ensure every buyer is an educated buyer so that there are no hidden surprises or steps along the way.

I have a home to sell. Can you help me?

Absolutely. If you wish we can negotiate the commission charged to sell your home and the rebate portion you will receive when buying and/or selling – or you can negotiate on your own with one of our HomeFrog network agents.

Can I make an offer to buy a home conditional upon the sale of my existing home and get the buyer rebate?

If your existing home is already under contract to close in the near future, yes, in most cases.

What if I’m not satisfied with the quality of service from my HomeFrog network agent?

We try our best to refer only those agents who are reputable and professional however we recognize that sometimes customers may decide that they are not receiving the high level of service they were expecting. In such cases we recommend that you first address your concerns directly with the agent and if after doing so you’re still not satisfied please contact us and we will try our best to resolve the issue on your behalf.