Buyer Representation Agreements have become a bigger topic in Canadian real estate since Ontario’s TRESA rules and the US commission settlement. Here is what they contain and what is negotiable.
What a BRA includes
A standard Buyer Representation Agreement covers the following:
| Section | What It Specifies |
|---|---|
| Parties | Your name and the brokerage name (not the individual agent) |
| Type of property | Residential, commercial, land, etc. |
| Geographic area | City, region, or specific neighbourhoods |
| Term | Start date and expiry date |
| Commission / compensation | How the agent is paid and how much |
| Holdover period | How long after expiry you still owe commission on properties the agent showed you |
| Duties | Agent’s obligation to act in your best interest (fiduciary duty) |
| Cancellation | Terms for early termination |
New rules in Ontario (TRESA)
Ontario’s Trust in Real Estate Services Act, 2020 (TRESA), which came into force December 1, 2023 and replaced the old Real Estate and Business Brokers Act, 2002 (REBBA), introduced several changes:
| Rule | What It Means |
|---|---|
| Written agreement | A brokerage’s agreement with a buyer client has to be in writing, and the agent gives you the RECO Information Guide before providing services |
| Commission transparency | The commission amount must be clearly disclosed and agreed upon |
| Self-represented buyers | Buyers can choose not to have representation and deal directly with the listing agent |
| Designated representation | In a brokerage representing both sides, designated agents must act independently |
| Open offers | Sellers can choose to have competing offers’ details disclosed; buyers can’t require it |
Client or self-represented
| Without a representation agreement | With one (client) |
|---|---|
| The agent doesn’t act for you or advise you | The agent acts in your best interest |
| You can still view homes and get information | Showings, offers and negotiation on your behalf |
| You negotiate for yourself | Pricing advice and a CMA |
How buyer agent commission works
Traditional model
Historically, the process was simple:
- Seller hires a listing agent and agrees to pay X% total commission (e.g., 5%)
- The listing agreement specifies how much goes to the buyer’s agent (e.g., 2.5%)
- The buyer pays nothing directly — the commission comes from the sale proceeds
What is changing
Canada hasn’t had a settlement like the US one (the NAR settlement), but commission is discussed more openly:
| Aspect | Traditional | Evolving |
|---|---|---|
| Who negotiates buyer commission | Seller (via listing agreement) | Buyer and their agent (via BRA) |
| Visibility | Buyers often unaware of commission | Disclosed upfront in BRA |
| Flexibility | Fixed percentages | Negotiable — flat fees, reduced rates, cashback |
| Buyer awareness | Low | Increasing due to media coverage and regulatory changes |
Commission ranges in Canada
| Commission Type | Typical Range |
|---|---|
| Full-service buyer agent | 2.0%–2.5% |
| Discount buyer agent | 1.0%–1.5% |
| Cashback agent | 2.0%–2.5% with 0.5%–1.0% rebate to buyer |
| Flat-fee buyer agent | $5,000–$10,000 |
How to negotiate your BRA
Before signing, these terms are negotiable:
1. Term length
| Term | Risk Level | When Appropriate |
|---|---|---|
| 30 days | Low | Trying out an agent |
| 60–90 days | Moderate | Common for an active search |
| 6 months | High | A long search with an agent you trust |
| 12 months | Very high | Long commitment |
2. Geographic scope
A narrower area limits the commitment: for example, the cities or neighbourhoods you are actually searching rather than the whole Greater Toronto Area.
3. Holdover period
| Holdover Length | Impact |
|---|---|
| 30 days | Minimal |
| 60 days | Moderate; common |
| 90+ days | Long; often negotiated down |
The holdover should apply only to properties the agent specifically introduced you to, not every property on the market.
4. Cancellation clause
Clauses buyers often ask for:
- Written notice provision (e.g., 24–48 hours written notice)
- No penalty for cancellation (or a clearly defined, reasonable fee)
- Holdover clause limited to specific properties shown
What if you are unhappy with your agent?
| Step | Action |
|---|---|
| 1. Talk to your agent | Express your concerns — many issues can be resolved through communication |
| 2. Contact the broker of record | Every brokerage has a broker of record who oversees agents; they can reassign you |
| 3. Request a mutual release | Ask to be released from the BRA without penalty |
| 4. Let the BRA expire | If the term is short, wait and don’t renew |
| 5. File a complaint | If the agent has acted unprofessionally, file a complaint with RECO (Ontario) or your provincial regulator |
Choosing not to have representation
You can buy a home without a buyer’s agent. In Ontario, this means you are a self-represented party (sometimes called a customer, not a client):
| With Agent (Client) | Without Agent (Self-Represented) |
|---|---|
| Agent has fiduciary duty to you | Listing agent has no duty to you (represents seller) |
| Agent negotiates on your behalf | You negotiate directly |
| Agent reviews comparables and advises on price | You do your own research |
| Commission paid to buyer agent | Potentially negotiate a price reduction or request commission savings |
| Legal protection through representation agreement | Your only protection is your real estate lawyer |
If you go unrepresented, your real estate lawyer is your only professional advocate.
Key takeaways
- Every term of a BRA is negotiable before signing
- A short term and a narrow area limit the commitment
- A holdover clause can be limited to properties the agent showed you
- A mutual release can end an agreement that isn’t working
- Compensation can be discussed upfront