Buyer Representation Agreements in Ontario: What You Need to Know
When and Why You Sign
When you become a client, you sign a representation agreement with the brokerage—a contract for real estate services and representation.
This agreement must be in writing and presented to you as soon as possible.
If you do not want to sign an agreement, you should not expect the real estate agent to provide you with any services, such as showing you homes.
The agreement protects you by clearly describing the duties owed to you, the services you will receive, your rights and responsibilities, what you will pay, and the specific terms, including how long the agreement will last and whether you can cancel it.
What to Look For in a Buyer Representation Agreement
Type of representation (brokerage or designated)
Name of your designated representative (if applicable)
Scope (e.g., geographic area, property type)
Services to be provided
Payment amount and terms
Duration of the agreement
Circumstances for cancellation
Types of Representation in Ontario
1. Brokerage Representation
The brokerage and all its agents represent you and must promote and protect your best interests.
One of the brokerage’s real estate agents may be your primary contact, but all agents at the brokerage are responsible for your interests.
Your confidential information may be shared among all brokerage agents.
If the brokerage represents both buyer and seller (even with different agents), this is called multiple representation, which can create potential conflicts of interest.
2. Designated Representation (Introduced December 1, 2023)
One (or more) of the brokerage’s real estate agents is your designated representative.
The designated agent(s) represent you and must promote and protect your best interests.
The brokerage and its other agents are required to treat you impartially and objectively and do not have access to your confidential information.
Designated representation reduces the likelihood of multiple representation, as only the named agent(s) represent you. If the same agent represents both buyer and seller, multiple representation rules apply and require written consent.
| Feature | Brokerage Representation | Designated Representation |
|---|---|---|
| Who Represents You | All agents at the brokerage | Only your named designated agent(s) |
| Confidentiality | Shared among all brokerage agents | Only your designated agent(s) have access |
| Multiple Representation | Brokerage can represent both sides, even with different agents | Only if the same agent represents both sides |
| Agent Neutrality | All agents act for you | Other agents must remain neutral |
Scope of the Agreement
The agreement should specify the scope of the engagement, such as a specific property, geographic area, or property type.
If you want to work with different agents for different property types or areas, the scope should be clear in each agreement to avoid disputes about payment.
Other Key Points
Payment: The agreement must state what you will pay and under what circumstances.
Termination: It should outline how and when the agreement can be cancelled.
RECO Information Guide: Before signing, your agent must review the RECO Information Guide with you, which explains types of representation, agent duties, and what to expect in a real estate transaction4.
If You Don’t Sign
Without a signed agreement, you should not expect to receive real estate services, including property showings1.
Sources:
RECO – Signing a contract with a real estate brokerage
RECO – Sector Advisory: Agreements must comply with the legislation
RECO Information Guide (PDF)
RECO Information Guide (Commercial)
