What Is a Buyer Representation Agreement in Ontario? (And Why You Have to Sign One)

A Buyer Representation Agreement is the written contract between you and the brokerage that represents you, and since December 1, 2023, Ontario law requires one before an agent can show you homes or write an offer. If you've been asked to sign one before your first showing, that's why. Here's what it is, why it exists, and what to check before you sign.

Why did Buyer Representation Agreements become mandatory in Ontario?

The Trust in Real Estate Services Act (TRESA) took effect December 1, 2023, replacing Ontario's previous real estate law. Under TRESA, a brokerage can't show you homes or submit an offer for you without a written representation agreement. The old verbal handshake no longer counts.

TRESA also ended "Customer Service Agreements," a lighter option that used to sit alongside full representation. Today, a written Buyer Representation Agreement is the only way to work with an agent as their client.

What must a Buyer Representation Agreement include?

Ontario's regulator, the Real Estate Council of Ontario (RECO), requires every representation agreement to set out clearly and prominently:

• The date it starts and the date it ends. The agreement runs for a defined term.
• How your agent's pay (commission) is worked out. The method has to be spelled out.
• Anything that could change that pay, for example if the listing brokerage offers buyer agents less than you agreed to pay yours.

Before you're asked to sign, your agent also has to walk you through RECO's Information Guide and get your written confirmation that you received it. That's a separate, required step that comes first.

Is buyer agent commission negotiable in Ontario?

Yes. Under TRESA, buyer-side commission is openly negotiable, and the agreement can include a "top-up" clause. If the seller offers buyer agents less than you agreed to pay, the clause says how that gap is handled, or whether it is at all. Talk this through with your agent at the start, well before an offer is on the table.

What should you check before you sign?

• The term. Agreements can cover a single showing or several months. Make sure it matches how long you expect to search.
• Whether it's exclusive. Most are exclusive to one brokerage for the term, so understand what that means before you sign.
• The commission and any top-up clause. Ask about anything that isn't clear.
• How to end it early if your plans change. A fair agreement has a clear way out.

Should signing one make you nervous?

No. A Buyer Representation Agreement is how representation works in Ontario now, for every buyer and every agent. The useful part is making sure the terms (length, commission and exit) fit your situation before you sign.

Have questions about what an agreement with Justin would look like? Reach out and he'll walk you through it before you're asked to sign anything.