A contract between a buyer and their real estate agent that formalizes the working relationship. Under TRESA, agents must now present a BRA before showing properties. It outlines the agent's duties, the buyer's obligations, the commission structure, and the duration of the agreement.
Why It Matters
Since TRESA's changes, you'll be asked to sign a BRA before your first showing. Read it carefully -- it's a legal commitment. Pay attention to the term length, the areas it covers, and how commission is handled. A good agent will walk you through every clause.
Real-World Example
Before your first showing in Liberty Village, your agent presents a BRA with a 90-day term covering all of Toronto. The agreement states the buyer's agent commission is 2.5% of the purchase price, and if the seller's side does not offer co-operating commission, you would be responsible for the difference. You negotiate the term down to 60 days and the geographic area to downtown Toronto only.
Ontario & GTA Context
Under TRESA (effective December 2023), agents must present a BRA before providing services beyond basic information. The BRA is an OREA standard form and must clearly outline the commission structure. Ontario is one of the few provinces where the BRA is now functionally mandatory before showings. RECO can discipline agents who provide services without a signed BRA.
How It Works in Practice
Do not sign a BRA without reading it carefully. Negotiate the term length (30-90 days is typical), the geographic area, and the commission terms. Ask your agent what happens if you find a property on your own or want to work with a different agent. A reasonable agent will be open to discussing these terms.
Common Questions
Can I cancel a Buyer Representation Agreement in Ontario?▾
Do I have to pay my buyer agent's commission?▾
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