No Written Agreement, No Loyalty: The Real Risk of Skipping a Buyer Representation Agreement Under TRESA
Since December 1, 2023, if you haven’t signed a written agreement in Ontario, you’re not a client — you’re a self-represented party, and no agent owes you a thing.
What is the risk of buying a home in Ontario without a written Buyer Representation Agreement?
According to the Real Estate Council of Ontario (RECO) (2023), since TRESA took full effect on December 1, 2023, a brokerage cannot “represent” you until you sign a written representation agreement — and without one, you are not a client but a “self-represented party” (SRP). As an SRP, no agent owes you a fiduciary duty, none can give you advice on price or terms, and none can negotiate on your behalf — they work only for their actual client, usually the seller. Skipping the agreement doesn’t save you money; it strips away the protection you were entitled to.
Source: Real Estate Council of Ontario (RECO), Bulletin 2.3 “Representation agreements” and Bulletin 2.4 “Dealing with a self-represented party” (2023)
A lot of buyers assume that holding off on signing anything — “let’s just look at a few houses first” — keeps things flexible and saves money. Under TRESA (the Trust in Real Estate Services Act, in full force since December 1, 2023), that instinct is backwards. The new framework splits consumers into two clear categories: a client who has signed a written agreement, and a self-represented party (SRP) who hasn’t. The gap in legal protection between those two is enormous. This article is written for buyers — to show exactly what a Buyer Representation Agreement (BRA) protects, what going without really costs you, and which lines to read before you sign.
→
→
→
→
TRESA splits buyers into two camps: client or self-represented party
TRESA eliminated the murky “customer” middle ground of the old system. Now there are only two clear statuses. A client is someone who has signed a written representation agreement with a brokerage and receives full representation and legal protection. A self-represented party (SRP), in RECO’s words, is “a person who is not a client of a brokerage” and is “representing their own interests in the trade” without any services under an agreement. The single dividing line between the two is whether that written agreement exists.
What “fiduciary duty” means once you sign a BRA
- negotiating the best possible price and terms for you;
- fully disclosing relevant information they know;
- keeping your budget, motivation, and bottom line confidential;
- offering professional opinions on value and due-diligence guidance.
These aren’t “nice-to-have” courtesies — they are legally enforceable obligations.
The real risk of not signing: zero duty owed to you
⚠️In a bidding war, if you’re an SRP, no professional is reviewing the terms or the price on your side of the table. It’s the scenario where you’re most exposed — and where a written agreement is worth the most.
Commission and holdover: going without makes fees murkier, not cheaper
Know your representation type: brokerage vs designated
Read before you sign: term, exclusivity, termination
- Term length — just viewing one property? You can ask for a very short term or even a single-property scope. Save longer terms for an ongoing relationship.
- Exclusivity — are you committed to buying only through this one agent during that period?
- Termination — how you exit, and whether there are any financial consequences to exiting.
All of this is negotiable, and asking is your right.
ℹ️Term length, exclusivity, and commission are all negotiable. RECO requires agents to set these out “clearly, comprehensively, and prominently” and explain them to you — if a clause is unclear, ask for a line-by-line walkthrough before you sign.
💡 Remember it this way: under TRESA, the written agreement isn’t a leash on you — it’s your seatbelt as a buyer. It puts fiduciary duty, advocacy, disclosure, and the fee rules in writing all at once. Skip it, and what you save isn’t cost — it’s your entire layer of legal protection.
What if you’re not ready to commit yet?
If you just want to see a property or two before deciding who to work with, you can simply ask the agent to make the term very short — or even property-specific, covering only one address. That way you’re not an exposed SRP, but you keep your flexibility. The key is to put your concerns on the table and negotiate the terms, rather than buying flexibility by signing nothing — because that trade costs far more than it looks.
Frequently Asked Questions
Can an agent still show me homes if I don’t sign a written agreement under TRESA?
Yes, but you’ll be treated as a self-represented party (SRP). Before assisting you, RECO requires the agent to give you the “RECO Information Guide” and the “Information and Disclosure to Self-represented Party” form, and to state clearly that they don’t represent you and can’t give you any opinions or advice. You get limited assistance — not representation.
Does a Buyer Representation Agreement have to lock me in for a long term?
No. RECO Bulletin 2.3 only requires that the agreement prominently show its effective and expiry dates — it sets no minimum or maximum term. The length is negotiable. If you’re only looking at one property, you can ask for a short term or a single-property scope.
If I don’t sign an agreement, does that mean I don’t pay commission?
That’s a common misconception. How the fee is calculated, who pays it, and when it can change are exactly what the BRA spells out. Without a written agreement you’re more likely to end up in a dispute over commission and holdover at closing. The agreement locks the fee rules in advance — it doesn’t invent a charge out of thin air.
What’s the difference between brokerage and designated representation for me?
Brokerage representation means the whole brokerage represents you; designated representation names specific agents to represent you, and the brokerage’s other agents do not represent you. When the same brokerage has both a buyer and a seller, designated representation better protects each side’s privacy. Confirm which one you’re getting before you sign.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · CLHMS & GUILD Elite · REAIS
VP & Branch Manager, Bay Street Group Inc.
Get expert answers on buying, selling, and renting in the GTA
Discover more from GTA Real Estate Broker | Arthur Zhao
Subscribe to get the latest posts sent to your email.
