BUYER REPRESENTATION AGREEMENT
What to understand before you sign with any agent.
Not just with me. This is what a buyer representation agreement does under Ontario law, what's negotiable, what it doesn't commit you to, and how to end it.
Read it before someone hands you one in a lobby.
First, the rule that actually applies
On December 1, 2023, the Trust in Real Estate Services Act — TRESA — replaced the legislation that had governed Ontario real estate for decades. It changed how agents have to disclose things, and it changed what your options are as a buyer.
What TRESA does require is this:
before an agent provides you with services or assistance of any kind, they must give you the RECO Information Guide and go through it with you. That's the mandatory step. It exists so that you understand your options before you pick one.
Be careful with American advice.
A great deal of content online describes mandatory buyer agreements "as of August 2024." That's a United States rule change, and it has no application in Ontario. Some Canadian agents have repeated it without checking. If someone tells you the law requires you to sign before you can look at a property, they're describing the wrong country's rules.
Your two options, and what each one gets you
TRESA removed the old middle ground. The "customer" category — where you got some help but not full representation — no longer exists for new arrangements. You're now one of two things.
With an agreement
Client
Advice on what to offer, what to waive, and what a property is actually worth
Confidentiality — what you tell the agent stays with them
The agent owes you loyalty and must act in your interests
Full disclosure of anything relevant they know about a property
Someone accountable to you if it goes wrong
Without one
Self-represented party
You can still be shown properties and given factual information
No advice on price, terms or negotiating strategy
No confidentiality — what you say can be shared with the seller
The agent's duty runs to their client, not to you
You're making the judgment calls alone
Neither approach is wrong. Some experienced buyers genuinely prefer to represent themselves. But it's a real choice with real consequences, and you should be making it deliberately rather than by default.
What’s actually in the agreement
TRESA requires the important terms to be set out clearly rather than buried. Six things to look for, and the two that matter most are the ones people skim past.
01
The term — how long you're committed
The dates the agreement runs between. This is negotiable, and it's the single most useful thing to ask about.
A six-month or year-long term is common but it isn't compulsory. Asking for something shorter is a completely reasonable request, and it lets you test the relationship before committing further. If it goes well, you extend it.
How an agent responds to this question tells you a great deal. Someone confident in their work would rather earn the extension than rely on the paperwork.
02
Compensation, and when it could change
How the agent gets paid, and what happens in the uncommon case where the seller's offered compensation falls short of what's agreed. TRESA requires this to be spelled out — you should see the number before you sign, not at closing.
Most of the time, the seller's brokerage covers it on resale and the builder covers it on pre-construction, so you're not writing a cheque. But read the shortfall clause. That's the part that can surprise you.
03
Geography and property type
Where the agreement applies and to what kind of property. An agreement covering all of Ontario and every property type is broader than one covering Toronto condos — worth noticing if you might buy something outside that scope with someone else.
04
The services being provided
What the agent has actually committed to do. Vague language here isn't necessarily a problem, but specific commitments give you something to hold them to.
05
Multiple representation
What happens if the same brokerage ends up representing both you and the seller. Under TRESA this requires your written consent in advance, and you can decline it.
In that situation the agent can't advise either side on price or strategy without disadvantaging the other, so both parties lose the advocacy they signed up for. If it comes up, ask whether another agent can be brought in so you keep full representation.
06
Holdover, and how it ends
How the agreement terminates, and whether compensation is still owed on a property the agent introduced you to after it ends. That holdover provision is standard, but the length varies — read it before you sign rather than discovering it later.
What it doesn't do
It doesn't commit you to buying anything
This is the most common misunderstanding. Signing a representation agreement is not an offer, not a commitment to purchase, and not a promise to buy within the term. It defines a working relationship. If you decide not to buy at all, you can walk away having bought nothing.
It doesn't trap you with a bad agent
Agreements can be terminated by mutual agreement, and most brokerages will release a client who genuinely wants out. If someone refuses, that's a conversation with their broker of record rather than an unsolvable problem.
What you shouldn't do is quietly start working with a second agent while the first agreement is live. Overlapping agreements create real disputes about who's owed compensation on which property — and you're the one caught in the middle.
It doesn't have to be signed on the spot
You're entitled to read it, take it away, think about it, or have someone else look at it. Any agent who needs it signed immediately, in person, before they'll answer your questions is telling you something useful about how the rest of the relationship will go.
Six questions to ask before you sign
Ask these of every agent you consider, including me.
"What term are you proposing, and would you do a shorter one?"
The answer to the second half is the informative one.
"What happens if I want to end this early?"
There should be a straight answer, not a deflection.
"Walk me through the compensation section and the shortfall clause."
How willingly they do this predicts a lot.
"How long is the holdover period, and what does it cover?"
Standard, but the length varies and it's worth knowing.
"If your brokerage lists a property I want, what are my options?"
Look for a real answer about multiple representation, including declining it.
"Can I take this away and read it?"
The answer should be yes without hesitation.
Disclaimer: General information, not legal advice. Representation agreements, disclosure obligations and compensation arrangements are governed by Ontario legislation and individual brokerage policy, and both can change. Specific terms vary between brokerages. Read any agreement carefully and seek independent legal advice if anything is unclear.
How I handle it
"What term are you proposing, and would you do a shorter one?"
The answer to the second half is the informative one.
"What happens if I want to end this early?"
There should be a straight answer, not a deflection.
"Walk me through the compensation section and the shortfall clause."
How willingly they do this predicts a lot.
"How long is the holdover period, and what does it cover?"
Standard, but the length varies and it's worth knowing.
"If your brokerage lists a property I want, what are my options?"
Look for a real answer about multiple representation, including declining it.
"Can I take this away and read it?"
The answer should be yes without hesitation.
Questions before you commit to anyone?
15 minutes nothing signed. Bring the agreement someone else has given you if that's easier — I'll go through it with you either way.
Former 6/49 Draws Manager
I managed hundreds of millions in jackpots. I don’t believe in luck—just smart decisions.
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Deep local expertise across buildings, markets, and price points.
Hundreds of Buyers Helped
First-time buyers to experienced investors. I’m here for the long game, not the quick sale.
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My job is to help you buy the right property—and walk away from the wrong one.
