Why Refusing to Sign a Buyer Representation Agreement Backfires

Resisting the Buyer Representation Agreement (BRA) is one of the most common missteps buyers make — and it’s usually driven by three misconceptions: that signing creates financial liability, that it locks you into a relationship you can’t exit, or that operating without one gives you more flexibility. In practice, avoiding a BRA doesn’t give you freedom. It removes the written obligation that protects you.

What a BRA Actually Is

A Buyer Representation Agreement is a written contract between you and a real estate brokerage establishing:

• Scope: The property type, price range, and geographic area you’re searching in
• Duration: How long the agreement is in effect (typically 90 days, negotiable)
• Compensation: What you agree to pay the brokerage, and how it adjusts if the seller offers buyer-side compensation
• Representation type: Confirms the agent represents your interests (not the seller’s)

Critically: a BRA is not a non-compete that prevents you from buying a property. It establishes the terms under which your agent works for you. A well-drafted BRA protects both sides.

Three Myths — and What’s Actually True

What Changed Under TRESA (December 2023)

Ontario’s Trust in Real Estate Services Act brought several changes to how BRAs function:

• Commission transparency: BRAs must now explicitly state what compensation the buyer owes the brokerage — including what happens if the seller offers less. The old assumption that “the seller pays” can no longer be implied; it must be written out.
• Designated representation: Different agents within the same brokerage can now represent buyer and seller separately, reducing multiple representation situations and enabling more focused advocacy.
• Clear termination terms: TRESA requires BRAs to explicitly state the conditions under which the agreement can be terminated — giving buyers clearer exit paths and making the agreement less open-ended.