An Ontario buyer’s agent helps a homebuyer search for properties, assess options, prepare offers, negotiate price and terms, and get the transaction to closing. If you are a client, the agent or brokerage also owes you legal duties, including promoting and protecting your best interests, keeping your information confidential, disclosing important information, and avoiding conflicts of interest.
How it works
In practice, a buyer’s agent can help you get financing pre-approval, find homes that match your needs, arrange showings, gather information about neighbourhoods and properties, make inquiries about zoning or permitted use, advise you in competing-offer situations, negotiate with sellers, guide you through paperwork, and connect you with professionals such as home inspectors and lawyers.
In Ontario, the legal relationship is usually with the brokerage, not just the individual agent. Your agreement may be a brokerage representation agreement, where the brokerage and all of its agents represent you, or a designated representation agreement, where one or more named agents represent you and the rest of the brokerage must treat you objectively and impartially.
Before services or assistance are provided, the buyer should receive the RECO Information Guide. If you sign a representation agreement, it should clearly describe the services being provided, the agreement’s scope and expiry date, how the brokerage will be paid, and key duties such as confidentiality, disclosure, and keeping you advised of significant steps.
What duties does a buyer’s agent owe you?
A buyer’s agent must promote and protect your best interests. Ontario’s code of ethics also requires conscientious service and fair, honest conduct. RECO’s consumer guidance says your interests take priority over the interests of the brokerage, its agents, and any other party when you are a client.
They also owe you disclosure and confidentiality duties. That means they must tell you information that could affect your decisions, and they cannot share your confidential information without written consent unless the law requires it. Confidential information can include your motivation for buying and the maximum price you would pay.
They must also avoid conflicts of interest. If multiple representation arises, such as the same brokerage representing both buyer and seller in the same trade under brokerage representation, or the same designated representative representing both sides under designated representation, the risks must be disclosed and all affected clients must agree in writing before the brokerage can continue. In that situation, the brokerage or agent can no longer give one-sided advice about price or terms and must act objectively and impartially.
Common misunderstanding
A listing agent is not automatically your buyer’s agent. If the agent is working for the seller and you are not their client, that agent is obligated to act in the seller’s best interests, can share what you tell them with the seller, and cannot provide you with opinions, advice, or anything that would encourage you to rely on their judgment.
