A buyer representation agreement is a written contract between a buyer and a real estate brokerage in Ontario that formalizes the agency relationship. It establishes the brokerage's legal obligation to represent your best interests, outlines the services you will receive, and specifies how the agent's compensation will be determined.
Under Ontario's Trust in Real Estate Services Act (TRESA), which replaced the former Real Estate and Business Brokers Act in December 2023, brokerages cannot enter into an agreement with a buyer for the purpose of trading in real estate unless that agreement includes the provision of representation. If the initial agreement is oral, the brokerage must reduce it to writing as soon as possible and before the buyer makes an offer. In practice, most agents will ask you to sign before property viewings begin, because TRESA requires agents to establish a client relationship before providing services such as showing homes or offering strategic advice.
The agreement itself must clearly set out several things: the services the brokerage will provide, the method used to determine compensation, the effective and expiry dates, and any terms related to termination. The expiry date must appear prominently on the first page with the buyer's initials beside it. There can only be one expiry date on the document.
Before you sign, your agent is required to provide you with the RECO Information Guide, a plain-language document from the Real Estate Council of Ontario that explains your rights, the types of representation available, and what it means to be a self-represented party. Under TRESA, those are the only two categories: you are either a client of a brokerage or a self-represented party. The older concept of being a 'customer' no longer exists.
Ontario brokerages now operate under one of two representation models. Brokerage representation means the entire brokerage and all its agents represent you. Designated representation means one specific agent is assigned as your representative, while the rest of the brokerage remains neutral. This distinction matters most when the same brokerage also represents a seller whose property you want to buy.
A buyer representation agreement is a negotiable document. The duration, geographic area, property type, and compensation terms can all be discussed before you sign. If you are not comfortable with any clause, raise it with your agent before the agreement takes effect. To learn more about the role your agent plays throughout the process, read What Does a Buyer's Agent Do in Ontario?