4 - Focus On Real Estate ASK CHARLES The authority for a positive real est


HARL y fo


p . N w the b br


or a positi e real est


e ate experience.


e experience.


My bank offered me a mortgage rate and then I went to a mortgage broker who provided me a rate from a different bank. I like the first bank’s offer better. Now the broker is saying I owe them money. Do I have to pay it?


er is saying I o e them money. o I hD


The truth is, it depend y the br


In fact, there are three e the br


ou o e them a f act, t


e are t


pay the broker’s fee. But, if all the mortgage broker did was provid you owe them a fee.


h is, it depends, you may ha e t B


s fee. But, if all the mort er did was pr vide you r es, it is unlik


be met before the broker can collect (or even attempt o llecot


gage is for personal or family pur


The fee must be clearly strly stated, in writing, and both parties must have signed the document o ac


vice agreement in p ee must be c


h parties must ha e signed the document to acknowledge their agreement.


wledge their agr


Next, as the borrower mortgage commitme


gage commitment from a lender to show you’ve met all our lendery conditions.


ext, as the bor o show y


e met all your lender’s


heir lending t ms to you. If you ar h those t


an. Once you ha e signed the commitmentsigned the commitment and met all the condit


hey must be satisfied bef e you r an. Once you have s


able to send the money to your lawyer and ou will o e fees on the agr


le to send the money to your la you will owe fees on the agreement.


You C


e got questions. H s got answ n is the R


e can be co ers abo t b f y u have a n w questi n f r Cha es, please email ask tion fo g a h


You’ve got questions. He’s got answers. Cha es Steharles Stevenson is the Registrar at the R


g, b t it d If you have a new quest


he conditions, the lender is notions, the lender is now er and


selling a home can be confusing, but it doesn’t have’t ha e to be. “Ask Cha for co


for consumers about buying and selling pro If


g and selling pr perty in Alberta.roperty in


rar at the Real Estateeal Esta e Council of Alberta. Charles ve to be. “Ask Charles” is a qu n Alberta.


te C for Charles, please email askcharles@reca.ca. reca.ca.


cil of Alberta. Cha es kn ws that b ” is a qu


s knows that buying and uestion and answer column


g a n and answer col


r y,, you must sign a ent from a lender a


ou must sign a


Whether you must pay the broker’s fee depends on all three of hese conditions. Dt you sign a fee agreem


her you must p y the br s f


ou sign a fee agreement document? Did y u sign the mortgage co


The lender will issue a commitment outlining their lending terms to you. If you are satisfied with those eterms, you will sign the commitment. If there ar ane y conditions in the commitment thathe commitment that you need to addr they must be satisfied loan


ms, you will sign t


e are any conditions in t you need to address, d before you receive the


e t


he mortgage commitment and pr id you sign a Cost of Credit D associated with your mortgage? As soon as you sign w


e committing to the t ying f


ee of these conditions. Did ment document? Did you ommitment and prove


you’re able to satisfy the lender’s conditions? o


e t


wledge that you understand all costs ed with your mort


ou understand all costs


are committing to het e terms stated, including paying fees.


ou sign written agreements, y ms st ed, inc


e able to satisfy the lender s conditions? Did you sign a Cost of Credit Disclosure to acknowledge that yo


written agreements, you de you rates, it is unlikely


ee conditions that must er can collect (or


en attempt to collect) a fee from you if t mortgage is for personal or family purposes.


e conditions that must ct) a fee from you if the


First, there must be a mutually agreed upon service agreement in


e must be a mutually agreed upon n place.


ed, in writing, and


The Cost of Credit iDisclosure explains the total cost associated with he mortt luding int


edit D e explains t


al cost associated with the mortgage, including interest and ed to p e st


ys bef e t


be required to pay. ou must rYou must receive the disclosure statement at least two business days before there’s a required payment due on the loan to the mo ement under th


est and certain fees you ma o


ement at least t o business s a r


d certain fees you may e t


ed p yment due


he loan to the mortgage lender This is a requirement under the Consumer Protection Act of Alberta.


ortgage lender. This is a he Consumer Pr


Pay attention to the types of disclosure and vice agreements that you sign.


y attention to the types of disc service agreements hthat you sign.


e and ds, you may have to ha e to p y it?


Finally, you have sign Disclosure


, you ha e signed the Cost of Crned the Cost of Credit


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