BUYER REPRESENTATION AGREEMENT
What to understand before you sign with any agent.
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 now 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.
Read the:
What TRESA does require is this:
Before a real estate 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 decide on your representation option..
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 Buyer Representation agreement
Here are six things to look for, and the two that matter most are the ones people skim past.
01 — Term
The dates the agreement runs between. This is negotiable, and it's the single most useful thing to ask about. A shorter term lets you test the relationship before committing further.
02 — Compensation
How the agent gets paid, and what happens if the seller’s offered compensation falls short of what’s agreed. You should see the number before you sign, not at closing. Read the Shortfall Clause.
03 — Property type & Area
Where the agreement applies and to what kind of property. A broad agreement is different than one focused on a specific area or type.
04 — Services
The services 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.
06 — Holdover
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.
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.
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.
What you shouldn’t do
Don’t 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.
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.
Walk me through the compensation section and the shortfall clause.
This may be the most important section. How willingly they do this predicts a lot.
What happens if I want to end this early?
There should be a straight answer, not a deflection.
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
I’ll send the agreement in advance.
We’ll go through the RECO Information Guide and the document on a call.
I’ll answer whatever you want to ask.
The term is negotiable and I’ll say so before you ask.
I’d rather earn an extension than hold someone to a document that isn’t working.
Nobody should be signing a document they haven’t read in the lobby of a building they’re about to walk through. If that’s how it’s being presented to you — by me or anyone else — that’s a reason to slow down, not to sign faster.
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.
$200M+ in Buyer Sales
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.
Protecting Buyers, Not Selling
My job is to help you buy the right property—and walk away from the wrong one.
