Sandeep Pawar
Broker
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The buyer representation agreement, clause by clause
What Ontario’s TRESA rules require, what each clause in the agreement means, and the questions to ask before you sign with any agent, including me.
The short answer: since 1 December 2023, Ontario’s Trust in Real Estate Services Act (TRESA) requires a written agreement before a brokerage acts for you as a client. Your agent must first give you RECO’s Information Guide. The agreement sets the scope, expiry date, services and your fee, including how it changes if the seller pays. It also covers the holdover period and multiple representation. Every part is negotiable before you sign.
What TRESA requires
- The RECO Information Guide first. Agents must give it to you before offering any services or assistance. It is a plain-language explanation of everyone’s rights and responsibilities.
- A written agreement. Any agreement to provide services is a representation agreement, whether it covers the full search or a single task such as preparing one offer.
- Client or self-represented. You are either a client of a brokerage, with advice and duties owed to you, or you are self-represented and receive no advice.
- Written consent for multiple representation. It cannot happen unless every client involved agrees in writing after written disclosure.
Clause by clause
| Clause | What it says | Question to ask |
|---|---|---|
| Scope | The area, property type or specific property the agreement covers. | Is it limited to the areas I am actually searching? What if I buy outside them? |
| Term and expiry | Start and end dates. The expiry must be prominent on page one. | Can we start with a shorter term? |
| Services | What the brokerage will do for you. There is no standard set of services. | Is everything you promised me written here? |
| Fee | What you will pay: fixed, percentage, or both. | How does my fee change if the seller pays some or all of it? |
| Seller-paid amount | How any amount the seller pays is credited to you. | What if a seller offers nothing toward my agent’s fee? |
| Holdover | A period after expiry when a purchase may still trigger the fee. | How many days, and which properties does it cover? |
| Representation type | Brokerage representation or designated representation. | Who exactly is my representative? |
| Multiple representation | What happens if the brokerage also acts for the seller or another buyer. | Does my fee change? Will you refer me elsewhere? |
| Termination | How and when the agreement can end, and any costs. | Can either of us end it early, and how? |
RECO’s advice: do not assume a service will be provided if it is not written in the agreement.
Who represents you: brokerage or designated
| Brokerage representation | Designated representation | |
|---|---|---|
| Who acts for you | The brokerage and all its agents, with one agent as your main contact. | One or more agents named in the agreement. |
| Other agents at the brokerage | Also represent you. | Must treat you impartially and objectively. |
| Multiple representation | More likely, because every listing at the brokerage counts. | Less likely, because only your named agent counts. |
| Changing your agent | The brokerage assigns your contact. | Needs your agreement, for example if your agent leaves. |
Ask any agent which type their brokerage offers. With RE/MAX Gold Realty Inc., Brokerage, I explain the option in the agreement itself before you sign.
Multiple representation: what you give up
Multiple representation happens when one brokerage or one designated agent acts for both buyer and seller, or for two competing buyers on the same home. It is legal only with every client’s written consent.
- Your agent must treat both clients objectively and impartially.
- Your agent cannot keep undivided loyalty to you or put your interests first.
- Your agent cannot advise you on the price to offer or the terms to include.
- Your confidential information cannot be shared without your written consent.
- You can refuse. Ask about a referral to another brokerage or representative.
RECO recommends independent professional advice, such as from a real estate lawyer, before agreeing to multiple representation.
Want an agreement explained before you sign it?
Book a 30-minute callRepresenting yourself
You can buy without an agent. RECO describes the risks as significant if you do not have the knowledge to handle the deal alone.
- The seller’s agent must give you RECO’s Information and Disclosure to Self-represented Party form and review it with you before helping in any way.
- That agent works for the seller. Anything you tell them, including your budget and motivation, can be passed on.
- You become responsible for checking value, zoning and use, handling competing offers, and preparing documents.
- You can become a client of a brokerage at any point if you change your mind.
How buyer agent fees work
- The fee is agreed between you and the brokerage. It is not fixed or approved by RECO, any government or any real estate board.
- It can be a fixed amount, a percentage of the price, or both.
- It cannot be based on the difference between the list price and the sale price.
- The agreement must say how your fee changes if the seller covers some or all of it, and if you consent to multiple representation.
- A seller may offer nothing toward your agent’s fee. That can affect what you can afford to offer, so we discuss it before each offer.
From first call to signing
First conversation
Your goals, budget and timeline. No agreement needed to talk.
The RECO Information Guide
I give it to you and explain it before providing any services.
The draft agreement
Scope, term, services, fee and holdover, filled in for your search.
Your questions
Every clause explained, in English, Hindi, Punjabi, Urdu, Kannada or Telugu.
Signing
You sign only when it reflects what we agreed, and you keep a copy.
Expiry or renewal
At the end of the term we review how it went. You decide whether to continue.
Before you sign any buyer agreement
- You received and understood the RECO Information Guide
- The scope matches the areas and property types you are searching
- The expiry date is on page one and the term suits you
- Every service you were promised is written in
- Your fee is clear, and so is what happens if the seller pays
- The holdover period has an agreed length
- You know whether it is brokerage or designated representation
- You know what happens if multiple representation comes up
- You know how the agreement can end
Next, read the full buying process, how offers and deposits work, and how I work.
Questions buyers ask
Do I have to sign a buyer representation agreement in Ontario?
If you want a brokerage to act for you as a client, yes. Since 1 December 2023, under the Trust in Real Estate Services Act (TRESA), the agreement must be in writing. Your agent must first give you RECO’s Information Guide. The alternative is to be self-represented, with no advice from any agent.
Can I sign with more than one agent?
Only if the agreements do not overlap. RECO says each agreement’s scope should be clear, for example a different area or property type, to avoid disputes. Two agreements covering the same search can leave you owing two fees.
How long does a buyer representation agreement last?
There is no standard term. It could be a day, a few weeks or months. The expiry date must appear prominently on the first page. You can ask for a short first term and extend it if the relationship works.
Who pays the buyer’s agent?
You and the brokerage agree the fee in the agreement. It can be a fixed amount, a percentage or both, and it is not set by RECO, the government or a real estate board. Often the seller agrees to cover some or all of it; the agreement must say how your fee changes when that happens.
What is a holdover clause?
A period after the agreement ends during which you may still owe the fee. For example, you buy a home you were shown while the agreement was in force. There is no minimum or set holdover length, so agree it before you sign.
What is designated representation?
Introduced in Ontario on 1 December 2023, it means one or more named agents represent you, rather than the whole brokerage. The brokerage’s other agents must treat you impartially. It makes multiple representation less likely.
What if my agent’s brokerage also represents the seller?
That is multiple representation. It is not allowed unless every client agrees in writing after written disclosure. If you agree, your agent cannot advise you on what price to offer or what terms to include. You can refuse.
Can I cancel the agreement?
Only in the ways the agreement allows. RECO advises checking that it lists every circumstance in which it can end and any costs. Read that clause before you sign, not after.
Sources
Read the agreement with someone who will explain it
I put my services in writing and walk you through every clause before you sign. Then we start the search.