Our brokerage enters into a buyer representation agreement with the buyer only when they are ready to place an offer on a property. Some brokerages require the buyer to enter into a buyer representation agreement before they even begin a property search. Our brokerage works with the buyer in good faith until they’re ready to table an offer. The process ultimately calls for us to enter into a buyer representation agreement with the buyer. The buyer is not responsible for direct commission costs when they enter into a buyer representation agreement with our brokerage. As well, if our brokerage doesn’t find a suitable property for the buyer then commission is not paid. If the buyer puts in a successful offer the commission is paid by the seller. The layman’s version of the buyer representation agreement provides explanations of each provision, paragraph or section of the form and is meant only to be a general overview. The layman’s version helps to ensure that all questions and ambiguities are addressed before the form is signed by both parties.

Toronto Real Estate Board (TREB) and the Ontario Real Estate Association (OREA)

The following is a link to a document prepared by the Toronto Real Estate Board (TREB) and the Ontario Real Estate Association (OREA). It is a copy of the standard form used by Realtors© for the buyer representation agreement. Key clauses have been annotated in red, providing an interpretation of the meaning of the clause in layman’s terms. You may find it helpful.

http://www.torontorealestateboard.com/buying/plain_language_forms/pdf/300_PL.pdf