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Hesitant to Sign a
Buyer Representation Agreement?
TRESA now requires a BRA before you can be shown a home. Here’s what it actually commits you to — and what you can negotiate.
What Is a Buyer Representation Agreement (BRA)?
A Buyer Representation Agreement is a contract between a buyer and a real estate brokerage that defines the terms under which the agent will represent that buyer. Under TRESA (Trust in Real Estate Services Act) 2023, Ontario real estate agents must obtain a signed BRA from a buyer before showing them any property — this is a legislative requirement, not a personal policy. The BRA defines your agent’s duty of loyalty, confidentiality, disclosure, and fiduciary care to you specifically.
What TRESA Changed — And Why It Matters to Buyers
Designated Representation Replaced “Multiple Representation”
Before TRESA, agents could represent both buyer and seller in the same transaction (“dual agency”). TRESA introduced designated representation — one agent at a brokerage represents you exclusively, with full fiduciary duty. This is a stronger protection for buyers.
BRA Required Before Any Property Showing
Unlike the previous system where agents could show homes before formalizing representation, TRESA requires a signed agreement upfront. This is mandatory — agents who skip this step are violating RECO regulations and risk their registration.
You Can Still Refuse — But Then You’re Unrepresented
If you decline to sign a BRA, the agent can still show you a property — but only as a “customer,” not a client. As a customer, you receive less protection: no fiduciary duty, no obligation to disclose negative information, no full advocacy. You are essentially on your own.
Key Point: BRA Hesitation Usually Signals a Trust Problem
Most buyers who hesitate to sign a BRA are actually expressing discomfort with the agent — not the legal mechanism. If you don’t trust the agent enough to sign a limited-scope BRA, that’s useful information: find a different agent. The BRA itself is a negotiable document, not a trap.
What You Can Negotiate in a BRA
Read the Holdover Clause
The holdover clause means: if your BRA expires but you purchase a property the agent showed you within the holdover period, you may still owe their commission. This is the provision most buyers overlook and the most common source of post-termination disputes. Know what’s in yours before you sign — and before you terminate.
When Hesitation Is Reasonable vs. When It Hurts You
Reasonable Hesitation
- You’ve had one bad experience with an agent before
- You’re still exploring and not ready to search actively
- The agent hasn’t explained what they’ll actually do for you
- The duration or scope seems too broad for early conversations
Hesitation That Hurts You
- Refusing all BRAs and operating as an unrepresented “customer” while actively making offers
- Working with multiple agents simultaneously without disclosure — this creates commission disputes
- Assuming the listing agent will protect your interests (they represent the seller)
- Delaying until you find “the one” — leaving yourself unrepresented in early negotiations
Critical Misunderstanding
Many buyers believe that by not signing a BRA, they avoid paying agent commission. This is incorrect. When you purchase a home listed on MLS, the seller has already agreed to pay a co-operating commission. That commission is paid regardless — either to your agent or returned to the seller. Not having an agent does not save you money; it removes your representation.
Frequently Asked Questions
Q: Is signing a Buyer Representation Agreement mandatory in Ontario?
Yes, under TRESA (Trust in Real Estate Services Act) 2023, Ontario real estate agents must have a signed BRA in place before showing a property to a buyer client. This applies to all RECO-registered agents. You can decline — but then you receive service as a “customer,” not a represented client, with significantly less protection.
Q: What exactly does a Buyer Representation Agreement commit me to?
A BRA defines: the property type you’re looking for, the geographic area, the duration of the agreement, and the commission the buyer’s agent will receive. Critically, the BRA does not force you to buy — it defines the terms under which the agent represents you. You can negotiate the duration, geographic scope, and compensation structure.
Q: Can I limit the scope of a Buyer Representation Agreement?
Yes. You can negotiate: a shorter term (even a single-property agreement), a limited geographic area, and specific property types. A BRA scoped to one property and one showing is technically valid. Most agents will accept reasonable limitations for serious buyers.
Q: Do I pay my buyer’s agent commission separately?
In most Ontario transactions, the seller’s brokerage offers a commission split to the buyer’s agent. Your buyer’s agent is typically compensated from this — not directly from your pocket. However, if the seller’s offer falls below the agreed BRA commission, you may owe the difference. Review the commission terms in your BRA carefully.
Q: What happens if I don’t want to continue with my buyer’s agent?
If you want to terminate a BRA, review the agreement terms. Many BRAs allow early termination with mutual consent. The key risk is a holdover period — if you purchase a property the agent showed you within a defined period after termination, you may still owe their commission. Read the holdover clause before signing.
Start With a Transparent Conversation
I’ll Explain Every Term Before You Sign
I walk every new buyer through the BRA line-by-line — duration, scope, commission, holdover. No pressure, no surprises. Your representation should be something you understand, not something you’re talked into.
Arthur Zhao · Real Estate Broker · FRI · ABR · SRS · MCNE · E-PRO · GUILD Elite · VP & Branch Manager, Bay Street Group Inc.
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