- Under Ontario's Trust in Real Estate Services Act, 2002 (TRESA), a real estate brokerage that represents you as a buyer generally does so under a written agreement setting out the terms…
- Most Buyer Representation Agreements are exclusive, meaning you agree to work only with that brokerage for the type of property and area described, for the length of the term.
- Buyer's agents are often compensated through an arrangement negotiated between the brokerages involved in a transaction, frequently funded out of what the seller has agreed to pay on the…
Before a realtor starts showing you homes in Ontario, many brokerages ask you to sign a Buyer Representation Agreement (BRA). It's easy to treat this as paperwork — but a BRA is a binding contract between you and the brokerage, and it can affect who you can buy through, for how long, and what you may owe if things don't go as planned.
This article walks through what a Buyer Representation Agreement actually commits you to, what it should — and shouldn't — contain, and what your options are if you want to end one early.
What a Buyer Representation Agreement Is
Under Ontario's Trust in Real Estate Services Act, 2002 (TRESA), a real estate brokerage that represents you as a buyer generally does so under a written agreement setting out the terms of that relationship. This is different from simply calling a realtor for information — signing a BRA creates a formal, ongoing representation relationship with legal obligations on both sides.
A typical Buyer Representation Agreement addresses:
- The type of property you're authorizing the brokerage to help you find
- The geographic area covered
- The length of the agreement (the term)
- How the brokerage will be compensated
- Whether the relationship is exclusive to that brokerage
Exclusivity: What It Actually Means
Most Buyer Representation Agreements are exclusive, meaning you agree to work only with that brokerage for the type of property and area described, for the length of the term. If you buy a qualifying property through another agent during that period, you may still owe compensation to the brokerage you signed with — this is one of the most misunderstood parts of the agreement.
Many agreements also include a "holdover" (or "tail") clause: even after the agreement ends, if you buy a property your agent showed you or introduced you to during the term, the brokerage may still be entitled to compensation for a further period. Always check whether your agreement contains a holdover clause and how long it lasts.
How Compensation Works
Buyer's agents are often compensated through an arrangement negotiated between the brokerages involved in a transaction, frequently funded out of what the seller has agreed to pay on the listing side. However, the Buyer Representation Agreement is the document that determines what happens if that arrangement doesn't fully cover your agent's compensation — for example, on a private sale, or a property where the seller isn't offering brokerage compensation. Read this section closely so you understand whether you could ever be personally responsible for paying your agent directly.
Before You Sign: What to Check
- [ ] What exact term (start and end date) does the agreement cover?
- [ ] Does it apply to all property types and areas, or is it limited?
- [ ] Is there a holdover/tail clause, and how long does it last after the term ends?
- [ ] How is the brokerage compensated, and could you ever owe money directly?
- [ ] What has the brokerage disclosed about its relationship to any property you might buy — for example, if the same brokerage also represents the seller?
- [ ] Under what circumstances can the agreement be ended early, and does that require the brokerage's written consent?
Can You Get Out of a Buyer Representation Agreement?
A Buyer Representation Agreement is a contract, so ending it early generally requires the brokerage's agreement — most commonly through a mutual written release. Some agreements set out their own process for early termination; others are silent, which can make an early exit more of a negotiation than an automatic right.
If a brokerage refuses to release you and you believe it hasn't lived up to its obligations, you can also raise concerns with the Real Estate Council of Ontario (RECO), which licenses and regulates brokerages and salespeople under TRESA. A real estate lawyer can review your specific agreement and advise on your options before you sign with a different brokerage or make an offer that could trigger a dispute.
Frequently asked questions
Do I have to sign a Buyer Representation Agreement before a realtor shows me houses?
Practices vary by brokerage. Some agents will show a small number of properties before asking you to sign, while others require an agreement before any showings. Ask directly what the brokerage's policy is, and don't feel pressured to sign before you understand the terms.
What's the difference between "customer" and "client" service from a realtor?
A "client" — someone who has signed a representation agreement — receives full representation, including advocacy and confidentiality. A "customer" — someone without an agreement — typically receives more basic service, like access to showings, without the same advocacy. TRESA requires brokerages to explain this distinction before you decide how to proceed.
Can I sign with more than one brokerage at the same time?
Generally no, if your agreement is exclusive — doing so could put you in breach of the agreement and expose you to compensation claims from more than one brokerage. Check the exclusivity terms carefully before approaching a second agent.
What happens if I buy a home directly from a builder while under a Buyer Representation Agreement?
This depends entirely on how your agreement defines the property types and transactions it covers. Some agreements explicitly address builder-direct purchases; others don't. Review this specific point with your agent or a lawyer before proceeding.
This is a real estate question
Start a file online — flat, published fees, reviewed by a licensed Ontario lawyer before a dollar is owed.