If you are buying a home in Ontario and working with a realtor, you will likely be asked to sign a buyer representation agreement at some point. This document is not just a formality—it is a contract that creates a legal relationship between you and the brokerage and defines what each side must do. Understanding what you are agreeing to before you sign can help you avoid surprises and ensure you get the service you expect. This page explains the core commitments of a buyer representation agreement in plain language, focusing on practical guidance for London area home buyers.
Your responsibilities under the agreement
When you sign a buyer representation agreement, you are agreeing to work exclusively with one brokerage during the term of the contract. This means you cannot hire another agent to help you buy a home during that time. If you do, you could be liable for paying a commission to both the first brokerage and the second one, depending on the terms. The specific duration is usually written in the agreement, often 30, 60, or 90 days, but you can negotiate a shorter period if you prefer.
You also commit to providing accurate and complete information about your financial situation. The agent needs this to assess your eligibility for financing, determine your budget, and prepare offers. If you fail to disclose that you already own a home or have a pending sale, or if you misrepresent your income or down payment, you could affect the brokerage's ability to fulfil its duties and may void the agreement. Additionally, you must direct all inquiries about properties you are interested in through your appointed agent, not contact listing agents directly.
A critical point: the agreement obligates you to pay the brokerage a commission if you purchase a home during the term—even if you find the property through your own efforts, a friend, or an online listing. The commission is usually paid by the seller in a standard transaction, but the agreement still holds you responsible if the seller's brokerage fails to pay, or if you buy a property that is not listed on the MLS. Make sure you understand how and when the commission is triggered.
What the brokerage owes you
In exchange for your commitment, the brokerage takes on legal duties to you. The most important is the fiduciary duty: the agent must act in your best interests, not their own or the seller's. This means they must disclose any conflicts of interest, such as if they also represent the seller or have a personal relationship with the seller. They must keep your personal financial information, your motivation to buy, and your maximum budget confidential, even after the agreement ends.
The brokerage also has a duty to provide you with all relevant information about properties you are considering. This includes material defects, known hazards, zoning issues, or anything that could affect the property's value or your use of it. They must present any offers or counter-offers to you promptly and without delay, and they must negotiate in line with your instructions. If the agent fails to meet these duties, you may have grounds for a complaint to the Real Estate Council of Ontario (RECO) or legal action.
The brokerage must also exercise reasonable care and skill in performing their services. This includes researching neighbourhood conditions, verifying property details such as lot size and boundaries, and advising you on things like title search requirements, land transfer taxes, and off-market opportunities. They cannot simply rely on online information without checking it. If something goes wrong because the agent was negligent, the brokerage may be held responsible.
Key clauses to review before signing
Before you sign a buyer representation agreement, read it carefully and ask about anything that is unclear. Look for the term length (how long it lasts), the geographical area covered (sometimes restricted to a specific neighbourhood or city, sometimes broader), and the property type (residential, commercial, or any type). If the scope is too narrow, you might miss out on properties you would consider; if too broad, you may be locked in unnecessarily.
Pay attention to the commission clause. It will state the amount or percentage the brokerage expects to be paid, but in most Ontario transactions, the seller pays the commission from the proceeds. Ensure the agreement clarifies that if the seller does not pay a sufficient amount, you could be on the hook for the difference. Also check for an “early termination” clause: it might allow you to cancel under certain conditions, such as if the agent quits or you become unable to buy due to job loss. If there is no such clause, you can still ask the brokerage to agree in writing to a cancellation.
Finally, two practical steps. First, ask the agent to walk you through every part of the agreement before you sign, and do not feel pressured to sign on the spot. Take it home, read it again, or consult a lawyer if you want. Second, negotiate the term length. A 30-day term gives you a trial period to decide if the agent's style and service level suit you, and you can always extend if you want to continue working together. If the agent insists on a 90-day term, ask why and consider whether you are comfortable with that commitment.
For additional context, review Best Realtor London.
Frequently asked questions
What exactly is a buyer representation agreement for Ontario home buyers?
A buyer representation agreement is a legally binding contract between you and a real estate brokerage that appoints that brokerage to represent you as a buyer. In Ontario, it is typically used when you want a realtor to search for and negotiate the purchase of a property on your behalf, and it sets out the obligations and duties of both parties.
What are the main commitments I make when I sign a buyer representation agreement?
It commits you to work exclusively with that brokerage for a specified period (often 30 to 90 days). You agree to pay the brokerage a commission if you buy a home during that term, even if you find the property yourself. You also commit to disclose your financial situation honestly and to not work with other agents while the agreement is active.
What commitments does the agent or brokerage make to me in return?
The agent must act in your best interest, maintain confidentiality about what you tell them, disclose any conflicts of interest, and actively help you find suitable properties. They must also provide you with all offers and counter-offers promptly and explain any material risks about properties you consider.
Can I cancel the agreement if I change my mind about the agent or stop looking for a home?
It is a binding contract, but it can be terminated early if both you and the brokerage agree in writing. If you believe the agent has not met their duties, you may have grounds for cancellation, but you cannot simply walk away without consent. Always review the termination clause before signing, or ask for a mutual release if needed.