Many buyers are surprised when an agent asks them to sign an agreement before booking showings. It is not a sales tactic. Since TRESA Phase 2 took effect on December 1, 2023, the rules for working with a brokerage in Ontario have been clearer and stricter.
The Kaizen Real Estate Team explains the agreement line by line at the first meeting. Here is what every Markham buyer should know.
Client or Self-Represented Party
Under TRESA, you are either a client of a brokerage or a self-represented party. There is no in-between "customer" option anymore.
| Client | Self-represented party | |
|---|---|---|
| Advice on price and strategy | Yes | No |
| Negotiation on your behalf | Yes | No |
| Confidentiality | Yes | No |
| Written agreement | Representation agreement | Acknowledgment |
Your agent must also give you the RECO Information Guide before providing services.
What to Check Before You Sign
- Term. How long the agreement lasts. Shorter terms are fine to start.
- Geographic area. Markham only, York Region, or wider.
- Property types. Resale, new construction, condos, rentals.
- Compensation. How your brokerage is paid, and what happens if a seller offers less.
- Holdover period. What applies if you buy a home you saw during the term after it ends.
- Representation type. Whether designated representation is offered if the brokerage also lists a home you like.
PARTNER PERSPECTIVE
Questions Are Welcome
Neeraj Moolchandani encourages buyers to ask about every clause before signing, especially compensation and the holdover period. A clear agreement makes for a smoother search.
If something does not fit, Neeraj Moolchandani adjusts the term, area or property type so the agreement matches how the buyer actually plans to shop.
Can You Start Small?
Yes. Many buyers begin with a short term or a single property, then extend once they are comfortable. The agreement should fit how you want to work.
Why It Protects You
As a client, you get advice on price, strategy for multiple offers, and someone whose duty is to you. That matters most on offer night, when decisions are fast. See what representation includes on the buyer's agent page.
Frequently Asked Questions
Do I have to sign a buyer agreement to see a house in Ontario?
Can I cancel a buyer representation agreement?
Who pays the buyer's agent in Ontario?
Michael John Lau and Neeraj Moolchandani are REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. This article is general information, not legal, tax or financial advice. Rules and market conditions change; confirm details with the appropriate professional before acting.