What is a buyer representation agreement and how does it affect sellers?

A buyer representation agreement (BRA) is a contract between a buyer and a real estate brokerage that establishes the agent's duty to represent the buyer and sets out how the agent will be compensated. In Ontario, agents are required to have a signed BRA in place before submitting an offer on behalf of a buyer.

For sellers, the BRA matters because it defines what the buyer's agent expects to be paid, and that expectation intersects with what you have agreed to offer in your listing agreement. If your listing agreement offers a co-operation commission to the buyer's brokerage, that typically satisfies the buyer's agent's compensation under their BRA. If the BRA commits the buyer to a higher compensation than your listing offers, the buyer may be responsible for covering the gap — this can affect what a buyer is willing to pay for your home.

You are not a party to the buyer's BRA and generally do not see it. However, understanding that buyers are contractually committed to their agents helps explain buyer negotiation behaviour, and it underscores why the co-operation amount you offer in your listing agreement can influence how buyer's agents respond to your listing.