When it comes to just about every kind of contract, signing on the dotted line makes us all a little nervous. Sometimes we like surprises, like a surprise party or a surprise gift, but when it comes to buying a property, surprises are the last thing you want. REALTORS® believe it’s important for you to understand who they are working for and what services you can expect from them.

That way there are no unpleasant surprises later in the transaction. When selling a property, most people are aware they sign a Listing Agreement with a REALTOR®. When buying a property, there is also an agreement that may be required. Under Ontario’s Trust in Real Estate Services Act, 2002 (TRESA), which came into effect on December 1, 2023, real estate professionals must clearly explain the nature of the relationship they have with a buyer before providing representation services.

If a buyer wants a REALTOR® to provide professional advice, advocate on their behalf, or negotiate in their best interests, the buyer must sign a Buyer Representation Agreement (BRA). This agreement confirms that the brokerage and their designated representative is representing the buyer and sets out the services to be provided, the duration of the agreement, the commission arrangements, and the designated agent working with the buyer. The purpose of the agreement is to ensure transparency, accountability, and ethical conduct.

Buyers also have the option to proceed without representation. Under TRESA, a person who chooses not to be represented is referred to as a Self-Represented Party (SRP). In this situation, the real estate brokerage represents the seller only, and the buyer should not expect advice or advocacy from the listing brokerage. The buyer will still receive fair treatment, but the brokerage cannot act in the buyer’s best interests.

A Buyer Representation Agreement does not have to be signed just to view a property. However, before a REALTOR® can provide advice, recommend strategies, or negotiate on behalf of a buyer, the law requires that the relationship be clearly defined in writing.

The Real Estate Council of Ontario (RECO), the provincial regulator responsible for consumer protection in real estate, requires that registrants explain these relationships and obtain the appropriate agreements before providing representation services. These rules are designed to make sure consumers understand exactly who the REALTOR® is working for in a transaction.

Clearly establishing the relationship in writing protects both the buyer and the REALTOR®. It ensures that the buyer knows who is advocating for them and what level of service they can expect, and it helps prevent misunderstandings later in the process.

Buying or selling property is an exciting but complex process. Having a REALTOR® working in your corner, acting as your advocate and representing your best interests, can make the experience smoother and far less stressful. Understanding the role of the Buyer Representation Agreement is an important part of that process and helps ensure a professional, transparent, and successful transaction.