What is it?
A buyer representation agreement (BRA) is the contract a buyer signs with a brokerage (the real estate company), not with the individual agent. Once you sign, you are that brokerage’s "client".
Ontario law (TRESA, the Trust in Real Estate Services Act) calls this a "representation agreement". Representation means the brokerage is on your side: it must promote and protect your best interests.
The law treats a written, an oral and even an implied agreement (one created by conduct) as a representation agreement. That is why your agent must put the agreement in writing and get your signature before you make an offer.
In Toronto and the GTA, agents often use a form made by the Ontario Real Estate Association (OREA), which people in the industry may call "Form 300". Check the form number and title on the document you sign.
What changed on December 1, 2023?
On that day, new TRESA rules took effect and changed the relationship between agents and consumers in a big way.
- The "customer" is gone. Before, you could be a "customer" who got limited services without a representation agreement. Now, in any trade, a person is either a client of a brokerage or a self-represented party (someone acting without an agent).
- Service agreements without representation are banned. A brokerage cannot sign an agreement with a buyer or seller for a trade unless the agreement includes representation (O. Reg. 567/05, s. 13.3.1).
- There are now two kinds of representation agreements. Under "brokerage representation", the brokerage and all of its agents represent you. Under "designated representation", only the agent named in the agreement represents you, and the brokerage and its other agents stay neutral. Designated representation was introduced on December 1, 2023.
- Old customer agreements all expired by March 30, 2024. To get services after that, a new representation agreement is needed.
Which kind of representation a brokerage uses differs from one brokerage to another. Ask your agent before you sign.
What the agreement must contain
The law (O. Reg. 567/05, s. 13.4) does not let a brokerage sign the agreement unless it sets out the following "clearly, comprehensibly and prominently".
| Item | What it means |
|---|---|
| Effective date and expiry date | When the agreement starts and ends. The expiry date must be prominent on the first page and you must initial next to it. There can be only one expiry date. |
| How the fee is calculated | How much you pay the brokerage and how it is worked out (a fixed amount, a percentage of the price, or both). |
| When the fee can change | For example, if the seller pays part of your fee, or if you consent to multiple representation. For each case: how it changes and whether another brokerage also gets paid. |
| How the fee is paid | For example, through your lawyer on closing, or that credit cards are not accepted. |
| The services | A list of what the brokerage will do. In a designated representation agreement, also the fact that the brokerage itself does not represent you. |
| Designated representative details (if that type) | The name of each designated representative, their services, and the duties of the brokerage and the designated representative. |
| Termination terms | When the agreement can be ended, and the rights and obligations in each case (if any). |
A service that is not in the agreement does not have to be provided. If you expect something, ask for it to be added to the agreement or a schedule.
Term and holdover
No law sets the length. RECO (the regulator of Ontario real estate agents) says it can be a day, a few weeks or months. Think about how long you want to be bound, and know your expiry date.
Most representation agreements have a "holdover clause". It says that if you buy within a set period after the agreement expires, you may still owe the brokerage its fee. For example, with a 30-day holdover, if the agent showed you a home during the agreement and you buy it within 30 days after expiry, you may have to pay.
A holdover clause is not required by law, and there is no minimum or set holdover period. RECO says these clauses are a common source of complaints and expects agents to explain them clearly before you sign. If the period feels long, negotiate a shorter one before signing.
How to read the commission clause
Legally, the buyer is responsible for the fee written in the buyer representation agreement. In practice, the seller often offers to cover all or part of the buyer’s brokerage fee, which reduces or removes what you pay yourself.
So the agreement should say (1) what happens if the seller offers more than the amount in your agreement, (2) whether you owe the shortfall if the seller offers less, and (3) how the amount changes if you consent to multiple representation. That is RECO’s guidance.
The fee is not fixed or approved by RECO, any government body or any real estate association. You and the brokerage agree on it. A fee based on the difference between the listing price and the sale price is not allowed.
A seller might offer nothing toward your fee. RECO warns that this can affect how much you can offer and whether you can afford the home. Ask your agent about the terms on each property before you write an offer.
Scope and exclusivity: what if I sign with two brokerages?
The agreement should state its scope: one specific property, a geographic area, or a property type (for example, condos only). If you sign overlapping agreements with two brokerages, there can be a dispute about who you must pay when you buy.
The law says a registrant who knows you have an unexpired buyer representation agreement with another brokerage cannot charge you a fee unless you agree in writing (O. Reg. 567/05, s. 23 (2)). So make sure the old agreement has ended before you sign a new one.
A buyer representation agreement usually says that, during its term and within its scope, you will work only with this brokerage (exclusivity). This is common practice, not a legal requirement, so check the exact wording in the document you sign.
Can I cancel it?
If the agreement has termination terms, the law requires them to be stated clearly. Before you sign, check when you can end it, when the brokerage can end it, whether you owe money in each case, and what happens to the holdover. The law does not give you a general right to cancel at any time for free.
RECO expects the agreement to say what happens if multiple representation arises (the brokerage or designated representative would represent both you and the other side) and you refuse to consent. For example, the agreement could end completely, or that one deal could be handed to another agent while the agreement continues.
Under a designated representation agreement, the brokerage cannot replace your designated representative without your agreement.
If you are unhappy with your agent, first contact the brokerage’s broker of record (the person responsible for compliance). If that does not resolve it, you can complain to RECO.
What the agent must do before you sign, and what you get after
- Before providing services, the agent must give you the RECO Information Guide and explain it. The guide covers client versus self-represented party, what to look for in the agreement, multiple representation and how to complain.
- Before you make an offer, the agreement must be put in writing, signed by the brokerage and given to you for signature (s. 13.6), and you must get a copy right away (s. 13.7).
- After signing, the brokerage and agent owe you undivided loyalty, must tell you everything that could affect your decisions, must keep your confidential information (budget, reasons for buying) private, and must avoid conflicts of interest.
- They must tell you about every property that meets your criteria, no matter how much commission the brokerage would get (s. 22.4). For example, they cannot skip a home because the seller offers a small fee.
- They must promptly tell you about every significant step they take (s. 22.6).
- Buyer services listed in the RECO guide include: help with mortgage pre-approval, information on tax exemptions, gathering neighbourhood and home information and arranging showings, zoning inquiries, strategy in competing offers, negotiating, guiding you through paperwork and closing, and referrals to inspectors and lawyers. What you actually get is what the agreement says.
Example
Minji decides to look for a condo in North York and meets an agent. The agent first gives her the RECO Information Guide and explains it, then brings out a designated representation agreement. The first page shows the effective date and the expiry date (three months later) in large print, and Minji initials next to the expiry date. The scope is written as "condos in North York and Thornhill".
The fee section shows a percentage of the price, what happens if the seller pays more or less than that, and how it changes if she consents to multiple representation. The holdover period was long at first, so she negotiated it down. After signing she gets a copy right away, and from then on the agent has a duty to search and negotiate on her side.
What the law and official sources say
Quotes are copied word for word. The "In plain words" lines are our explanation, not an official translation.
“representation agreement” means a written, oral or implied agreement between a brokerage and a person under which the brokerage and the person agree that the person will receive services from the brokerage and will receive representation from either the brokerage or a designated representative, in respect of a trade in real estate;In plain wordsA representation agreement is any deal between a brokerage and a person, written, spoken or implied, under which the person gets services and is represented by the brokerage or a designated representative.
Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026
A brokerage shall not enter into an agreement with a buyer or seller for the purposes of trading in real estate if the agreement does not include the provision of representation.In plain wordsA brokerage can only sign a trading agreement with a buyer or seller if it includes representation. The old "customer" type of agreement is no longer allowed.
Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026
A brokerage shall not enter into a written agreement with a buyer or seller for the purpose of trading in real estate unless the following requirements are satisfied: 1. The agreement clearly, comprehensibly and prominently, sets out the following information: i. The date on which the agreement takes effect and the date on which it expires. ii. The method for determining, A. the amount of any remuneration payable to the brokerage, … iv. The method to be used for paying any remuneration payable to the brokerage. v. The services that the brokerage will provide under the agreement … vii. The terms related to termination of the agreement, if any. 2. The expiry date is displayed prominently on the first page of the agreement. 3. The buyer or seller has initialled the agreement next to the expiry date.In plain wordsThe agreement must clearly state the start and expiry dates, how the fee is calculated and paid, the services, and any termination terms. The expiry date must stand out on page one and you must initial beside it.
Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026
If a brokerage enters into a buyer representation agreement with a buyer and the agreement is not in writing, the brokerage shall, as soon as possible after entering the agreement and before the buyer makes an offer, reduce the agreement to writing, have it signed on behalf of the brokerage and provide it to the buyer for signature.In plain wordsEven if the agreement started by words or conduct, the brokerage must put it in writing, sign it and give it to the buyer to sign as soon as possible and before any offer is made.
Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026
Unless agreed to in writing by the buyer, a registrant shall not charge or collect any remuneration from a buyer in respect of a trade in real estate if the registrant knows that there is an unexpired buyer representation agreement between the buyer and another registrant.In plain wordsIf an agent knows the buyer still has a live buyer representation agreement with another brokerage, the agent cannot charge that buyer a fee unless the buyer agrees in writing.
Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026
Most representation agreements include what is often called a holdover clause. The clause may require you to pay the brokerage fees for a purchase or sale even when the transaction happens after your representation agreement expires. … A holdover clause is designed to protect the brokerage, and there is no minimum or set time for a holdover period.In plain wordsMost agreements have a holdover clause, so you may owe the fee even if you buy after the agreement ends. The clause protects the brokerage, and no law sets its length.
Source: reco.on.ca/consumers/signing-a-contract-with-a-real-estate-brokerage/ · checked Oct 30, 2026
Common questions
Will an agent refuse to show me homes if I do not sign?
The RECO guide says that if you do not sign an agreement, you should not expect services such as being shown homes. Since December 1, 2023, agents cannot provide services without a representation agreement. But the agreement can be short and narrow, for example to view one property or to write one offer.
Is the agreement with the individual agent?
No. The contract is with the brokerage the agent works for. In a designated representation agreement, the agent who will represent you is named, and only that person represents you. In a brokerage representation agreement, the brokerage and all of its agents represent you.
How long does the agreement usually last?
No law sets a term. It can be a day or several months. The expiry date must stand out on the first page and you must initial next to it. If there is a holdover clause, you may still owe a fee for a period after expiry, so check that too.
Does the buyer pay the commission?
The buyer is responsible for the fee written in the agreement. But sellers often offer to cover all or part of the buyer’s fee. The agreement should say what happens if the seller offers more or less than your fee. The amount is negotiable and is not set by RECO or any association.
Can I end the agreement early?
That depends on the termination terms in your agreement. The law does not give you an automatic right to cancel. Before signing, check when you can end it, whether you would owe anything, and what happens to the holdover. If there is a problem, speak to the brokerage’s broker of record first, and if that fails you can complain to RECO.
Must the agent give me anything before I sign?
Yes. Before providing services the agent must give you the RECO Information Guide and explain it. Before you make an offer, the agreement must be in writing and given to you to sign, and you must receive a copy right away.
Guides that use this term
Sources checked
- O. Reg. 567/05: General (TRESA regulation) — ss. 1, 13.3.1, 13.4, 13.6, 13.7, 22.4, 22.6, 23 · checked Oct 30, 2026
- RECO Bulletin 2.3 Representation agreements · checked Oct 30, 2026
- RECO Bulletin 2.2 Representation · checked Oct 30, 2026
- RECO Bulletin 2.6 Customer relationships not permitted · checked Oct 30, 2026
- RECO Bulletin 6.2 Remuneration clause in an agreement of purchase and sale · checked Oct 30, 2026
- RECO, Signing a contract with a real estate brokerage (consumer page) · checked Oct 30, 2026
- RECO Information Guide (Residential, content version December 1, 2023) PDF · checked Oct 30, 2026