Working with a
real estate agent:
Things you need to know
Ontario real estate agents are required by law to walk you through this guide before providing services or assistance. Please read it carefully and ask your agent if you have any questions.
You have received this guide because you are considering receiving services from a real estate agent, or the agent is representing a client in the transaction and you might receive assistance from them.
Key terms used in this guide
- Brokerage — means a real estate brokerage
- Real estate agent / agent — means a real estate salesperson or broker
- You / client — means a buyer or seller
- Buyer / seller — can also mean lessee and lessor respectively
Agents in Ontario must be registered, which requires completing the necessary education and carrying consumer deposit insurance and professional liability insurance. Real estate agents provide valuable information, advice, and guidance as you navigate the complexities of real estate transactions.
If you are a seller
- Advise you on market conditions and best strategy to attract buyers
- Market your home — photos, videos, and virtual tours
- Provide referrals to lawyers, home staging companies, and more
- Arrange and attend home inspections and appraisals
- Arrange showings for interested buyers
- Advise on how to handle competing offers
- Vet offers and potential buyers
- Negotiate with buyers to achieve the best results for you
- Guide you through paperwork and closing
If you are a buyer
- Assist with pre-approvals for financing
- Make you aware of tax exemptions you may be eligible for
- Gather and share information about neighbourhoods and homes
- Make inquiries about zoning and permitted property use
- Advise on best approach in competing offer situations
- Negotiate with sellers to achieve the best results for you
- Guide you through paperwork and closing
- Provide referrals to home inspectors, lawyers, and contractors
Undivided loyalty
Your best interests are promoted and protected. Your interests take priority over those of the brokerage, its agents, and any other party.
Disclosure
They must tell you everything they know about the transaction or your client relationship that could have an impact on any decisions you make.
Confidentiality
Your confidential information cannot be shared without your written consent, even after your client relationship ends.
Avoid conflicts of interest
They must avoid any situation that would affect their duty to act in your best interests. If a conflict arises, they must disclose it immediately.
Your responsibilities as a client: Be clear about what you want, share all relevant information, respond quickly to your agent's questions, understand your agreement terms, and pay the agreed fees — even if a deal falls through due to your default or neglect.
If you are not a client of a real estate brokerage, you are considered a self-represented party. This means you have chosen to represent yourself, which comes with different rights and responsibilities. Very few buyers or sellers make this choice.
RECO recommends that you seek independent professional advice before proceeding as a self-represented party.
There are significant risks to representing yourself if you do not have the knowledge and expertise required to navigate the transaction on your own. You will be dealing with a seller or buyer who is benefitting from the services, opinions, and advice of an experienced real estate agent.
The agent cannot:
- Provide you with any services, opinions, or advice
- Do anything that would encourage you to rely on their knowledge, skill, or judgement
- Encourage you to represent yourself or discourage you from working with another agent
Any assistance the agent offers:
- Is a service to their client, not you
- Is in the best interests of their client, not you
- Is to help their client sell or buy a property
You have the right to change your mind. If you're concerned about completing a transaction on your own, or you need advice, you can choose to become a client of a real estate brokerage at any point during the transaction.
When you become a client, you sign a representation agreement with the brokerage — a contract for real estate services and representation. Protect yourself by reviewing the agreement in detail to avoid any misunderstandings between you and your real estate agent.
Brokerage representation
The brokerage and all its agents represent you and must promote and protect your best interests. One of the brokerage's real estate agents may be your primary contact.
Designated representation
One (or more) of the brokerage's real estate agents is your designated representative. They represent you and must promote and protect your best interests. The brokerage's other agents are required to treat you impartially and objectively.
Multiple representation means a designated representative or brokerage represents more than one client with competing interests in the same transaction. Multiple representation is not permitted unless each client involved agrees. You should seek independent professional advice before proceeding.
If you agree to multiple representation, the brokerage or designated representative cannot maintain undivided loyalty to you, cannot promote your interests over the other client's interests, and cannot offer advice about prices or terms you should offer or accept.
If you are a seller
- You decide how much information to share about competing offers
- Your agent will advise based on market conditions and offer content
- You must provide clear written direction before any offer content is shared
- Personal or identifying information in offers cannot be shared
If you are a buyer
- You decide whether to participate in an open offer process
- Your agent can advise you on steps to protect your offer content
- Be aware that the seller can decide to share offer content at any time
You can refuse multiple representation. If you don't agree, the brokerage or your designated representative is not allowed to proceed. Ask about alternatives — for example, the brokerage could refer you to another designated representative or another brokerage entirely.
Brokerage firms and real estate agents working in Ontario must be registered with RECO. Ontario brokerages and real estate agents are accountable for their conduct.
Step 1 — Contact your brokerage first
In many cases, your brokerage will be able to mediate or resolve your complaint. Search for the brokerage in RECO's Public Register to find the broker of record and their contact information.
Note: The brokerage cannot ask you to sign an agreement requiring you to withdraw a complaint to RECO.
Step 2 — Contact RECO directly
To file a complaint, visit the complaints section of the RECO website. RECO will review the issue, determine if it has the authority to deal with it, and advise on next steps.
3300 Bloor Street West, Suite 1400
Toronto, ON M8X 2X2
416-207-4800 · 1-800-245-6910
information@reco.on.ca
reco.on.ca