What Is a Buyer Representation Agreement in Ontario?

A buyer representation agreement is a written contract between you and a real estate brokerage that sets out what the brokerage will do for you, how long that arrangement runs, and how the brokerage gets paid. If you’ve started working with an agent anywhere in Ontario recently and been handed one of these to sign before you’ve even seen a house, you’re not imagining a new hurdle. Since December 1, 2023, changes to Ontario’s Trust in Real Estate Services Act have pushed brokerages toward putting representation status in writing early, and a signed buyer representation agreement is how most now do it. This guide covers what the document actually says, why you’re being asked for it now, what’s genuinely open to negotiation, and what happens if it stops working for you. For everything else a Toronto purchase involves, see our complete Toronto real estate guide.

What a buyer representation agreement actually is

Strip away the legal phrasing and a buyer representation agreement does three things. It names the brokerage that will represent you, and usually the specific salesperson within it. It sets a term, a start date and an end date, during which that representation applies. And it states how the brokerage will be compensated for the work, either as a flat fee, a percentage of the purchase price, or some other method the agreement has to spell out in plain terms.

The contract is with the brokerage, not with the individual agent you’ve been talking to. That distinction matters more than it sounds like it should. If your agent leaves the brokerage partway through your search, or you have a falling out with them specifically, the agreement itself is still in force with the firm, and a different salesperson at that brokerage can usually take over your file without a new contract. Most Ontario brokerages use a version of the industry-standard Buyer Representation Agreement published by the Ontario Real Estate Association, commonly referred to as Form 300, though the exact wording and layout can vary slightly by brokerage.

Signing one makes you a client rather than a customer, and that upgrade in status is the whole point. A client is owed confidentiality, undivided loyalty, and full disclosure of anything relevant to the deal. A customer, someone an agent is simply helping without representing, gets basic honesty and fair dealing but not the same duty to put your interests first. A lot of buyers assume an agent is automatically working for them the moment a conversation starts. Under Ontario’s current rules, that isn’t how it works, and the buyer representation agreement is the document that actually makes it true.

Why you’re being asked to sign one now

For a long time, plenty of Ontario buyers signed a representation agreement late, sometimes not until they were writing an offer. That’s largely gone. The shift traces to the Trust in Real Estate Services Act, which replaced the older Real Estate and Business Brokers Act, and to the major package of changes to it that came into force on December 1, 2023. Those changes, overseen by the Real Estate Council of Ontario, tightened the rules around representation status and required brokerages to be explicit, in writing, about whether a buyer is being represented as a client or simply assisted as a customer.

What the law actually requires here is narrower than what a lot of buyers experience in practice. TRESA and RECO’s guidance require a brokerage to be clear about representation status before providing representation, and to set out specific content in any representation agreement once one exists. What the law doesn’t say is that an agent can never show you a house without a signed buyer representation agreement in hand. That’s become common brokerage policy, not a line in the statute itself, and individual brokerages have adopted it partly to avoid ambiguity about who represents whom once multiple people end up interested in the same property.

The practical result is the same either way. Most agents in the Toronto market now ask for a signed agreement early, often before a first showing, because it resolves the representation question before it becomes a problem later. Knowing that the request comes from brokerage practice layered on top of a real legal requirement, rather than the requirement itself, doesn’t change whether you should sign. It just means you’re allowed to ask questions about the specific terms without worrying that you’re pushing back on something the law itself demands unchanged.

What signing one actually commits you to

The agreement names who you’re actually contracting with: the brokerage’s legal name and, typically, the salesperson who will be your day-to-day contact. It sets a term, the exact start and end dates coverage runs for, not a vague “until we find something.”

Scope matters just as much. A well-drafted agreement states whether your representation is exclusive to that one brokerage, meaning you can’t work with another agent to buy a home during the term, or non-exclusive, which leaves you freer to look elsewhere. It should also state what kind of property and what area it covers. An agreement written broadly, for any property anywhere in the GTA, is a very different commitment than one limited to condos in a specific neighbourhood.

Compensation is where TRESA changed the underlying rule the most. RECO’s guidance on representation agreements requires the brokerage to disclose the specific method used to calculate what you’ll owe, and to identify any circumstance where that amount could change and how. What the agreement cannot legally do is leave the number open-ended, something along the lines of “whatever the seller’s brokerage happens to offer.” There’s no fixed rate set by law or by RECO, and commission in Ontario has never been standardized this way. The point of the disclosure rule isn’t to set a number for you; it’s to make sure the number you’re actually agreeing to is written down before you sign, not discovered at closing.

What’s negotiable before you sign

The standard form isn’t a fixed menu. Term length is the most common thing to push on. A brokerage’s first draft might propose several months or longer; asking for a shorter term, renewable if things are going well, is a completely normal request and most agents will accommodate it without much friction.

Exclusivity is just as open to negotiation. If you’re not ready to commit to one agent for your entire search, you can ask for a non-exclusive agreement, or push to have the exclusivity apply only to properties that agent actually introduces you to, rather than anything you happen to find yourself. Scope works the same way: narrowing the geographic area or the property type the agreement covers protects you from being locked into representation you don’t need if your search changes direction partway through.

None of this is guaranteed to be offered upfront. Brokerages draft agreements that favour their own position, and a buyer who doesn’t ask rarely gets asked in return whether the terms work for them. Raising questions about term, exclusivity and scope before you sign is normal, not awkward.

Can you get out of one if it isn’t working

Yes, generally, though it isn’t automatic. If the relationship with your agent stops working, real estate practice in Ontario allows a buyer to ask the brokerage to cancel the agreement, and most brokerages will do it through a written form or a mutual release once both sides sign off. RECO’s own consumer guidance is direct about the mechanics: a client can request cancellation, but honouring that request is at the brokerage’s discretion rather than something the buyer can force unilaterally. In the ordinary case, a reasonable ask to end a relationship that isn’t working gets a reasonable response, but there’s no guarantee built into the agreement that cancellation happens instantly or without conditions.

One clause to understand before you ever need it is the holdover provision. Most standard agreements include one, and it covers a specific situation: if your agent introduces you to a property during the agreement’s term, and you go on to buy that same property after the agreement has expired, without a new agent involved, the holdover clause can still entitle the original brokerage to its commission. It exists to stop a buyer from waiting out the contract on a property they’ve already been shown, then closing the deal on their own to avoid paying. It’s a normal, common clause rather than a red flag, but it’s exactly the kind of detail to ask about, particularly the length of the holdover period, before you sign.

If a cancellation dispute genuinely can’t be resolved directly with your brokerage, RECO handles complaints against Ontario real estate professionals, though that’s a last resort most requests never reach.

Does signing cost you anything directly

On its own, no. Signing a buyer representation agreement doesn’t produce an invoice, a deposit, or any payment due the day you put your name on it. In the large majority of Ontario resale transactions, the compensation described in the agreement is still paid out of the proceeds of the sale, with the seller’s brokerage forwarding an agreed amount to your brokerage once the deal closes. You aren’t writing a cheque to your agent out of pocket in the ordinary course of a purchase.

TRESA’s disclosure requirements exist precisely so you know, before you sign, whether that’s how your particular deal will be structured, what happens if it isn’t, and what circumstances could change the number. The worry that this will cost money you weren’t expecting is the single most common concern buyers raise, and it’s the one the disclosure rules were written to address directly.

Frequently asked questions

What is a buyer representation agreement in Ontario?

A buyer representation agreement is a written contract between a home buyer and a real estate brokerage that sets out the services the brokerage will provide, the period it covers, and how the brokerage will be compensated. Signing it makes you a client of that brokerage rather than a customer, which means you’re owed confidentiality, full disclosure, and the brokerage’s undivided loyalty in the transaction, protections a customer relationship doesn’t include. The contract is with the brokerage itself, not only with the individual salesperson you’ve been dealing with, so representation continues even if your specific agent changes within the firm. Most Ontario brokerages use a version of the standard form published by the Ontario Real Estate Association, commonly called Form 300.

Do I have to sign one before an agent will show me a house?

Not strictly as a matter of law, though it has become common brokerage practice. Ontario’s Trust in Real Estate Services Act and RECO’s guidance require a brokerage to be clear about your representation status, client or customer, before providing representation, and to set specific content in any representation agreement once you sign one. Neither the Act nor RECO states that an agent can never show a property without a signed agreement first; that’s a policy many individual brokerages have adopted on top of the law, mainly to remove any ambiguity about who represents whom if more than one buyer becomes interested in the same home. In practice, most agents in the Toronto market do ask for a signature early in the process, often before a first showing.

Can I negotiate the terms of a buyer representation agreement?

Yes. The standard form a brokerage hands you is a starting point, not a fixed set of terms you have to accept as written. Term length is the most commonly negotiated item; if the first draft proposes several months, asking for a shorter period is a routine request most agents will accept. Exclusivity is negotiable too, and you can ask for a non-exclusive arrangement or one that only applies to properties your agent actually introduces you to, rather than anything you find independently. Scope, meaning the geographic area and property type the agreement covers, can usually be narrowed as well, which matters if your search might change direction as you go.

How do I cancel a buyer representation agreement in Ontario?

Start by asking your brokerage directly, in writing, to release you from the agreement. Most brokerages handle this through a signed cancellation form or a mutual release once both sides agree, and RECO’s own consumer guidance confirms that while a client can request cancellation, honouring it is at the brokerage’s discretion rather than something a buyer can force outright. Also check for a holdover clause before assuming a clean exit is guaranteed: many standard agreements let a brokerage still claim commission if you later buy a property that agent had already introduced you to, even after the term ends. If a cancellation dispute can’t be resolved directly with the brokerage, RECO handles complaints against licensed real estate professionals in Ontario, though this is a last resort rather than a first step.

Does a buyer representation agreement cost me money directly?

No, not on its own. Signing the agreement doesn’t create an invoice, a deposit, or any payment due that day. In the large majority of Ontario resale transactions, the compensation the agreement describes is still paid out of the proceeds when the sale closes, with the seller’s brokerage forwarding an agreed amount to your brokerage rather than you paying out of pocket. The specific arrangement for your deal is exactly what TRESA’s disclosure rules require the agreement to spell out in advance, including the method used to calculate the amount and any circumstances that could change it, so you know the structure before you sign rather than discovering it at closing.