Real Estate Business Sale Agents & Brokers

Work With A True Professional

There is so much confusion in the marketplace with terminology surrounding the commonly used terms ‘real estate business agent’ or ‘business sale agents’ and so on.  The purpose of this article is to shed some light on what to look for in an intermediary and some common misconceptions.  There are people operating in the marketplace that are not properly credentialed that you should avoid.

What most people don’t know is that whatever the terminology that is used (and the correct usage is either business brokers or sales representatives), in the Province of Ontario a person must be a registrant with RECO in order to sell real estate or businesses (under the REBBA Act, a business is treated as a piece of real estate).  That being said, if you are either a buyer or a seller of a company always ensure that you work with a bona fide registrant.

There are many people who simply put up an advertisement and announce that they will sell a business or find a buyer.  If you come across a situation where you doubt the credentials of the supposed real estate business sale agent or brokerage, demand to see their RECO registration card.  If they are not true professionals then find someone else to work with.

For the record, Steve Skrlac is a sales representative with Coldwell Banker Pinnacle Real Estate, Brokerage.  Steve’s professional field is in the sale of businesses in Toronto, Ontario Canada and the GTA.

As a client, not only should you be concerned with fraud and ensuring you deal with someone that is properly credentialed, you should also be concerned with their knowledge.  To get registered a person must pass a series of rigorous examinations, understand the code of ethics that all registrants are bound by and know what the fiduciary duties they have to their clients.  The market and the job to sell a business is not easy and certainly requires a deep skill background to be effective.  Don’t simply work with a high-promising professional that will promise you fast and easy results and not share their background into the process or their references and experience.

There have been scenarios where sellers have worked with ‘business agents’ from out of province or even the U.S.  The rationale is that they might know the person or the person might have a familiarity with the business in question.  That aside, the registration requirement still remains.  Protect yourself and your deal.  Contact a reputable and licensed Ontario brokerage to find someone that would be a good fit for your needs.

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