The Buyer Representation Agreement is a fundamental document in Canadian real estate transactions, used when a prospective property buyer wishes to secure professional representation from a licensed real estate brokerage. This agreement is typically employed at the beginning of the property search process and is required by most Canadian brokerages before committing significant time and resources to a buyer's property search. The document formalizes the agency relationship, protecting both the buyer's and brokerage's interests by clearly defining the scope of services, compensation structure, and duration of the relationship. It includes critical details such as the desired property characteristics, geographic search area, and commission terms. The agreement must comply with provincial real estate regulations, such as REBBA in Ontario, and includes mandatory disclosures about agency relationships and privacy policies.
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1. Parties: Identification of the buyer and the brokerage/agent, including full legal names, addresses, and contact information
2. Background: Brief context explaining the purpose of the agreement - that the buyer wishes to retain the brokerage to assist in purchasing property
3. Definitions: Key terms used throughout the agreement including 'Property', 'Purchase Price', 'Term', 'Market Area', etc.
4. Appointment and Term: Formal appointment of the brokerage and duration of the agreement
5. Services Provided: Detailed list of services the brokerage will provide to the buyer
6. Buyer's Obligations: Buyer's commitments, including working exclusively with the brokerage and providing accurate information
7. Commission and Fees: Structure and timing of payment for brokerage services, including scenarios where commission is payable
8. Agency Relationship: Explanation of fiduciary duties and the nature of the agency relationship
9. Confidentiality and Privacy: Handling of personal information and confidential details
10. Termination: Conditions and process for ending the agreement
11. General Provisions: Standard clauses including governing law, entire agreement, amendments, and notices
1. Multiple Representation: Required when the brokerage may represent both buyer and seller in a transaction
2. International Property Search: Include when buyer is interested in properties outside the local jurisdiction
3. Teams and Delegations: Required when multiple agents within the brokerage will be working with the buyer
4. Digital Services: Include when providing virtual tours, electronic signatures, or other digital services
5. Referral Services: Include if the agreement covers potential referrals to other brokerages or service providers
1. Schedule A - Market Area: Detailed description of the geographic area where the buyer is interested in purchasing
2. Schedule B - Property Requirements: Specific criteria and preferences for the type of property the buyer seeks
3. Schedule C - Commission Structure: Detailed breakdown of commission rates and payment scenarios
4. Schedule D - Additional Services: List of any extra services provided beyond standard representation
5. Appendix 1 - Working with a REALTOR: Standard industry document explaining agency relationships and responsibilities
6. Appendix 2 - Privacy Policy: Brokerage's privacy policy and information handling practices
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