Ontario · Home Buying

📋 TL;DR — 3 Key Takeaways

Ontario’s real estate industry is governed by TRESA (Trust in Real Estate Services Act), which replaced REBBA in 2023. Under TRESA, once you sign a Buyer Representation Agreement, your agent owes you a full fiduciary duty — a legal standard requiring them to put your interests above their own. This includes:

Loyalty: your interests come first, even over the agent’s own financial benefit. Confidentiality: your budget ceiling, urgency, and motivations cannot be disclosed to the seller or their agent. Full Disclosure: the agent must tell you everything material they know about a property. Diligence: actively working to find properties that fit your needs and criteria.

Here’s what you need to understand about how agents get paid: buyer’s agents are typically compensated by the seller, at a rate pre-set in the listing agreement — usually 1% to 2.5% of the sale price. This means a higher purchase price results in a higher commission for your agent. It also means closing quickly is financially better for the agent than a prolonged search.

Since 2024, TRESA requires agents to disclose their compensation structure in writing before providing services. But disclosure alone doesn’t eliminate the tension — it just makes it visible. Before signing any agreement, ask your agent directly: “How much commission will you earn on this transaction? Are there any bonuses or incentives from the seller’s side?” A good agent will answer without hesitation.

Many buyers assume their agent’s job is simply to get the lowest price. That’s a misunderstanding. Best interest is a holistic judgment that includes: securing the right property at a price supported by market data, protecting you with appropriate conditions (inspection, financing), avoiding properties with undisclosed defects, and timing the transaction to match your actual needs.

In a competitive multi-offer environment, a buyer who insists on lowballing every property may lose 5–10 suitable homes before finally paying over asking on one they’re less enthusiastic about. That’s not a win. A skilled agent uses CMA data to identify fair value, advises you on when to compete aggressively and when to walk away, and structures offers that protect you even when bidding above list price.

Watch for these warning signs that your agent’s interests may be taking priority over yours: pressuring you to submit an offer quickly without providing comparable sales data; failing to disclose known material defects or issues with a property; consistently recommending properties above your stated budget without clear justification; steering you toward specific lawyers, inspectors, or mortgage brokers with unexplained urgency.

How to protect yourself: always request a written CMA (Comparative Market Analysis) before finalizing any offer price. Independently verify recent sold prices through publicly available TRREB data. Choose your own home inspector and real estate lawyer through independent research. These steps don’t signal distrust — they’re standard practice for informed buyers.

💡 Arthur’s Advice

Establishing a Buyer-Agent Relationship ↓

❓ Frequently Asked Questions

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