What is a buyer representation agreement?
It's the agreement that makes you a client of a brokerage. As a client, the brokerage and its agents owe you duties: to act in your best interest, to keep your information confidential, and to advise you honestly on price, terms and risk.
Since Ontario's Trust in Real Estate Services Act (TRESA) took effect on December 1, 2023, the rules are clearer (O. Reg. 567/05):
- A brokerage can't work with a buyer without representing them. A brokerage may not enter into an agreement with a buyer that doesn't include representation. If you want an agent's advice, you're their client.
- The agreement must be in writing before you make an offer. An agreement can start informally, but the brokerage must put it in writing as soon as possible, and before you make an offer.
- You get the RECO Information Guide first. Before entering into an agreement, your agent should give you the Real Estate Council of Ontario's guide, which explains your options and your rights as a buyer.
If you choose not to be represented, you're a self-represented party. The listing agent can't advise you or give you opinions, because they represent the seller (RECO TRESA FAQs).
What's in the agreement?
Most Ontario brokerages use a standard form, but the details are filled in by you and your agent. Read these parts closely:
- Start and expiry dates. The expiry date must be shown prominently on the first page, and you initial beside it.
- Scope. Whether the agreement covers a specific property, a geographic area, a type of property, or all three.
- Services. What the brokerage will do for you. An agreement can cover a full search or a single service, like showing one property or drafting one offer.
- How the brokerage is paid. The method for working out the commission, and any situation where the amount could change. In most resale deals, the buyer's brokerage is paid out of the commission the seller offers. Check what the agreement says happens if the seller offers less than the amount you agreed to.
- Holdover period. Many agreements say the brokerage is still owed its commission if, within a set time after the agreement ends, you buy a home it introduced you to. Holdovers aren't required by law, and RECO notes they're a common source of complaints, so make sure you understand yours.
- How it ends. The agreement must explain how either side can end it early.
Can you negotiate the terms?
Yes. A standard form is not a fixed contract. RECO expects agents to discuss the scope, the start date and the expiry date with you before you sign, and many buyers don't realize they can choose to receive only certain services.
How we handle it at Porchlight
Christian's take: Buying a home is one of the biggest financial decisions you'll make. Committing to someone to guide you through it, before you've seen whether they can deliver, never made much sense to me. So we do it a little differently at Porchlight.
I offer every buyer two outings together. That's enough for both of us to see whether we work well together and whether I'm adding real value to your search. If I'm not, a straight answer and a thank-you is all it takes. If we both feel it's a good fit, the paperwork is just a formality.
From there, we put our agreement in writing, as Ontario requires, and always before you make an offer. We'll walk you through each clause and keep the scope and term to what your search actually needs.
Frequently asked questions
Do I have to sign a buyer representation agreement in Ontario? If you want an agent to represent you, yes. The agreement must be in writing before you make an offer. You can also buy without representation as a self-represented party, but the listing agent can't advise you.
Can I see a home before signing anything? It depends on the agent. Some ask you to sign before the first showing. At Porchlight, we start with two outings so you can see how we work. If we both want to continue, we put the agreement in writing, always before an offer.
Who pays my agent? In most resale purchases, the buyer's brokerage is paid from the commission the seller offers through the listing. Your agreement sets out the amount and what happens if the seller offers less, so read that clause carefully.
How long does a buyer representation agreement last? As long as you and the brokerage agree. The expiry date must be on the first page. A shorter term is reasonable, especially when you're just starting out.
Can I cancel a buyer representation agreement? Every agreement must say how it can be ended, so read the termination and holdover clauses before you sign. Our own view is simple: a working relationship should rest on trust, mutual respect and professionalism, not on a contract. If any of those is missing, we won't hold you to the agreement just because we can. Parting ways is better for both of us. Sometimes it's addition by subtraction.
