What is a Buyer Representation Agreement?

A Buyer Representation Agreement (BRA) is a contract between a homebuyer and a real estate brokerage that establishes the agent as your exclusive representative. It outlines the agent duties, the geographic area, the type of property you are looking for, the term length, and the compensation arrangement. Once signed, the agent is legally obligated to act in your best interest, but you are typically committed to using that agent exclusively for the agreed period.

Do I have to sign a BRA before looking at homes?

In Ontario, new TRECA (Trust in Real Estate Services Act) rules require that buyers sign a written representation agreement before an agent can provide certain services — including showing properties or making offers on your behalf. In other provinces, the requirements vary, but most agents will ask you to sign a BRA before doing significant work. You can negotiate the terms before signing, including the duration, geographic scope, and compensation.

Can I cancel a BRA early?

Most BRAs include a cancellation clause, but the terms vary widely. Some allow cancellation with written notice and no penalty; others include a holdover clause that means you owe the commission if you buy a property the agent showed you within a specific period after cancellation. To avoid being locked in, negotiate a short term (60–90 days), a narrow geographic scope, and a clear cancellation clause before signing. If you are already locked in and unhappy, speak to the brokerage broker of record — they can often mediate.

How much commission does a buyer agent earn?

Buyer agent commission in Canada typically ranges from 2% to 2.5% of the purchase price. Historically, this was offered by the seller through the listing agreement and split between the listing and buyer agents. Following new transparency rules and the US NAR settlement influence, buyers are increasingly aware of and able to negotiate this commission. Some agents offer cashback or reduced commission structures. On a $700,000 home, 2.5% commission equals $17,500 plus HST.

What is a holdover clause?

A holdover clause (also called a holdover period or tail period) means that if you view a property with an agent and then buy that property within a specified period after the BRA expires (usually 60–90 days), you still owe the agent their commission. This prevents buyers from using an agent to find properties and then cutting them out of the deal. The clause typically only applies to specific properties the agent introduced you to, not to any property in the market.

Buyer Representation Agreements in Canada: What You Are Signing (2026)

Buyer Representation Agreements have become a bigger topic in Canadian real estate following new transparency rules and the ripple effects of US commission reforms. Here is what you need to know before you sign.

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 (TRECA / TRESA)

Ontario’s Trust in Real Estate Services Act, 2002 (TRESA), along with the updated TRECA rules, introduced several changes:

Rule	What It Means
Written agreement required	Buyers must sign a BRA before the agent can provide substantive 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	Buyers can request to see competing offers in some circumstances

What agents cannot do before you sign a BRA

Before BRA	After BRA
❌ Show you properties in person	✅ Full property tours and showings
❌ Submit offers on your behalf	✅ Submit and negotiate offers
❌ Provide specific property advice	✅ Detailed CMA and pricing guidance
✅ General market information	✅ Tailored property recommendations
✅ Send you MLS listings	✅ Strategic search and off-market leads

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

While the Canadian market has not undergone the same formal settlement as the US (NAR settlement), the trend toward commission transparency is accelerating:

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 (2026)

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	If you are testing an agent
60–90 days	Moderate	Standard for active search
6 months	High	Only if you trust the agent and expect a long search
12 months	Very high	Generally avoidable

2. Geographic scope

Narrower is better for you. Instead of “Greater Toronto Area,” specify the cities or neighbourhoods you are actually searching.

3. Holdover period

Holdover Length	Impact
30 days	Minimal — standard and reasonable
60 days	Moderate — still common
90+ days	Aggressive — try to negotiate down

The holdover should apply only to properties the agent specifically introduced you to, not every property on the market.

4. Cancellation clause

Ensure the BRA includes:

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, simply wait and do not 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, hiring a good real estate lawyer becomes even more critical — they are your only professional advocate.

Key takeaways

Read the BRA carefully before signing — every term is negotiable
Keep the term short (60–90 days) and the geographic scope narrow
Understand the holdover clause and negotiate it to apply only to specific properties
Know that you can request a mutual release if the relationship is not working
Commission transparency is increasing — do not be afraid to discuss compensation upfront