What is a buyer representation agreement?

A buyer representation agreement is a written contract signed between you and a real estate agent. It formalizes the relationship and outlines the agent's duties to help you find and purchase a property. In Ontario, this agreement is a standard part of the home-buying process and establishes mutual obligations between the buyer and the agent.

The agreement typically includes several key elements. It specifies the geographic area where the agent will search for properties and may define an exclusivity period, meaning you agree to work solely with that agent during the term. The duration of the contract (often 30, 60, or 90 days) is stated upfront. The agreement also covers how the agent will be compensated, commission amounts, and when payment is due, usually from the sale proceeds. It outlines the agent's responsibilities, such as showing available properties, providing market information, and presenting offers on your behalf.

Exclusivity is a central feature. During the agreement's term, you typically cannot work with another agent or sign competing agreements. However, you retain the right to purchase a property you find yourself without paying commission, though this exception should be clearly documented in the contract.

If you are working with an agent in London, Ontario, understanding the terms before signing is important. Read the agreement carefully, confirm the term length and exclusivity clause, and ask about what happens if you want to end the relationship early. Having a clear, written agreement protects both you and the agent.