Ontario Real Estate Glossary
Buyer Representation Agreement
A written contract between a buyer and a real estate brokerage that establishes the brokerage as the buyer's representative under TRESA. Defines the duration, geographic area, commission, and the duties the brokerage owes the buyer. The standard Ontario form is OREA Form 300.
What is a Buyer Representation Agreement?
A Buyer Representation Agreement (BRA) is the written contract a buyer signs with a real estate brokerage to formalize the representation relationship. It establishes the brokerage as the buyer's representative under TRESA, defines what services the brokerage will provide, sets a duration and a geographic area, and records the commission arrangement. The standard Ontario form is OREA Form 300. A BRA must be signed before the brokerage can submit an offer on the buyer's behalf.
What's in a BRA
A complete BRA addresses:
- Parties — the buyer and the brokerage (not the individual salesperson)
- Term — the start and end dates of the representation
- Geographic area — the cities, regions, or property types the agreement covers
- Property type — residential, commercial, condo, etc.
- Commission — typically a percentage of the eventual purchase price, with provisions for who pays (seller's brokerage or buyer's brokerage)
- Duties owed — under TRESA, this includes loyalty, confidentiality, full disclosure of material facts, and reasonable care
- Holdover period — a window after expiry during which the brokerage can still claim commission on properties shown during the term
When the BRA must be signed
A common buyer question is "do I have to sign right now?" The practical answer in Ontario:
- A BRA is not required to view properties. A buyer can tour homes, ask questions, and explore the market without signing.
- A BRA is required before the brokerage submits an offer on the buyer's behalf. Without one, the brokerage cannot represent the buyer in the transaction; the buyer becomes a self-represented party.
Most brokerages ask buyers to sign once the buyer is seriously considering a property. Single-property BRAs (covering only one specific property) are an option for buyers reluctant to commit to a longer term.
Where this appears in your Humber program
The BRA is core content in Course 2: Residential Transactions under representation arrangements, and reappears across the simulation papers and the broker program. Form 300's specific clauses are commonly tested.
Practical guidance for registrants
- Explain the BRA in plain language before asking the buyer to sign. Many buyer disputes trace to opaque commission clauses or unclear holdover terms.
- Use the geographic area carefully. A BRA that says "Ontario" forces the buyer to use you for any Ontario purchase during the term — unfair if the buyer is exploring multiple regions.
- The single-property BRA option is a real concession when the buyer is hesitant. It locks in commission for one specific transaction without binding the buyer for future searches.
Frequently asked questions
Is a Buyer Representation Agreement required in Ontario?
A Buyer Representation Agreement is required before a brokerage can present an offer on a buyer's behalf, but not required to view properties. Until the BRA is signed, the buyer is a self-represented party and the registrant cannot represent them in negotiations. Many buyers sign single-property BRAs when they are ready to make an offer rather than committing to a long-term, broad-area agreement.
What are the disadvantages of signing a Buyer Representation Agreement?
The main disadvantage of a Buyer Representation Agreement is exclusivity — the buyer commits to using one brokerage for purchases within the agreement's term, geographic area, and property type. If the buyer becomes dissatisfied, leaving requires either negotiating an early release or running out the term. Holdover clauses can also create friction if the buyer purchases a property they viewed during the term after the BRA expires.
What is the benefit of signing a Buyer Representation Agreement?
A Buyer Representation Agreement guarantees the brokerage's full TRESA-level duties: loyalty to the buyer, confidentiality of negotiating information, full disclosure of material facts, and reasonable care. Without a BRA, the registrant deals with the buyer as a self-represented party with significantly narrower obligations. The BRA also locks in the commission arrangement so neither party negotiates that during a live offer.
Do you need a lawyer to sign a Buyer Representation Agreement?
A lawyer is not required to sign a Buyer Representation Agreement, though buyers signing a long-term or commercial BRA sometimes have a lawyer review it. The OREA Form 300 is a standard contract; the registrant is responsible for explaining the clauses, and the buyer can ask questions before signing. If anything feels unclear or unusual, requesting a lawyer's review before signing is reasonable.
Practice this topic
ExamAce covers BRA-specific scenarios in the Course 2 question bank, with Form 300 clause-interpretation drills and TRESA-era representation framework questions in the simulation banks.
See it in practice
Walk through a realistic Ontario scenario where Buyer Representation Agreement matters — with the decision point, the correct move, and the pitfall.
Authoritative sources
Related terms
Agreement of Purchase and Sale
The legally binding contract under which a buyer and seller agree to a real estate transaction in Ontario, capturing price, deposit, conditions, irrevocability, and closing terms. The standard residential APS is OREA Form 100.
TRESA
The Trust in Real Estate Services Act, 2002 — Ontario's consumer protection legislation governing real estate trading. Came fully into force April 1, 2023, replacing the Real Estate and Business Brokers Act (REBBA).
Caveat Emptor
Latin for 'let the buyer beware' — the common-law principle that a buyer of real estate is responsible for inspecting and confirming the property's condition, subject to the seller's narrow duty to disclose latent defects.