Real Estate – Ontario Real Estate Association (OREA)
Toronto Real Estate Board (TREB)
Buyer Representation Agreement (BRA)
The Buyer Representation Agreement, (BRA), is a type of real estate brokering contract requiring a prospective Buyer of real estate to deal exclusively through a particular real estate broker for the purchase or leasing of a property. The Buyer gives a particular Broker the exclusive right to represent the Buyer and agrees to work exclusively with that Broker for the purchase or lease of real estate within a stated time period, for the type of real estate in the area specified by the Agreement. It is important to note that the spouse, heirs and related corporations of the Buyer are also bound by the BRA.
The Terms
- Time/Duration of the BRA should be no longer than necessary. It is recommended that Buyers agree to no more than a 2 or 3 month term. Leasing does not terminate the BRA. In the event that the client leases a property, the BRA remains in force with respect to the purchase of the leased property or a property of the type and within the area described in the BRA. If the client decides to buy the property leased, or buy a property that matches the type described, within the area and time frame covered by the BRA, the client will owe commission to his or her real estate broker under the BRA.
- General Description
- Property Type should be as specific as possible and refer to the Buyer client’s intended use of property. For example: 3 bedroom residential house with a large back yard.
- Geographic Location should refer to a specific neighbourhood (for example: Willowdale in North York). Your real estate agent should be familiar & knowledgeable with the area.
- Commission
- The Buyer client is agreeing that the Broker is entitled to the rate of commission stated in BRA if the Buyer purchases or leases real estate similar to that described in the ‘General Description’ within the term of the BRA. Pursuant to the BRA, the Buyer is responsible to pay at least the commission stated in the BRA, to the extent that such commission is not otherwise paid by a listing broker or the Seller of the property purchased or leased. Commission is payable even if the property purchased or leased did not come to the Buyer client’s attention through the Broker.
The foregoing is not an exhaustive review of the BRA form and is merely a summary of some of its terms.
If you are interested in buying or leasing real estate it is recommended that you seek Independent Legal Advice (I.L.A.) before you enter into a Buyer Representation Agreement.
