Rules Related to Signing Representation Agreements in Ontario

Buyer Representation Agreements

There are 4 steps to be followed.

If a brokerage enters into a buyer representation agreement with a buyer and the agreement is not in writing,

  1. the brokerage shall, before the buyer makes an offer,
  2. reduce the agreement to writing,
  3. have it signed on behalf of the brokerage and
  4. submit it to the buyer for signature.

Listing Agreements

There are 5 steps to be followed.

For Sellers, the rules are almost identical, except for the primary obligation to have it signed “at the earliest practical opportunity” followed by the qualifier “no later than”… any buyer makes an offer.

Notice here, that the Listing Agent likely has no control over potential buyers, whereas the Buyer’s agent can indeed ensure that the BRA is executed ahead of time.

If a brokerage enters into a seller representation agreement with a seller and the agreement is not in writing,

  1. the brokerage shall, at the earliest practicable opportunity and
  2. before any buyer makes an offer,
  3. reduce the agreement to writing,
  4. have it signed on behalf of the brokerage and
  5. submit it to the seller for signature.

Please refer to sections 14 and 15 of the Code of Ethics.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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