A Buyer Representation Agreement (BRA) is a written contract between you and your real estate agent that confirms your business relationship. It is an important document that outlines the services your real estate agent provides and what your real estate agent expects from you. This includes:
Your real estate agent will ask you to sign a BRA before making a purchase offer on a house. You are required by law to sign a BRA when working with a real estate agent.
The forms listed below are posted by provincial real estate associations and serve as standard BRA contracts.
|Alberta||RECA||Exclusive Buyer Representation Agreement|
|British Columbia||RECBC||Disclosure of Representation in Trading Services|
|Manitoba||MREA||Acknowledgement of Limited Joint Representation|
|New Brunswick||NBREA||Not Available|
|Newfoundland and Labrador||NLAR||Exclusive Buyer Brokerage Contract|
|Nova Scotia||NSREC||Agency Disclosure Information for Buyers and Sellers|
|Ontario||OREA||Buyer Representation Agreement|
|Prince Edward Island||PIEREA||Not Available|
|Quebec||OACIQ||Exclusive Brokerage Contract|
A Buyer Representation Agreement (BRA) is a legal requirement if you want to work with a agent. You should never sign a contract that you do not fully understand, so make sure that you ask questions and accept every point in the BRA. Only sign a BRA if you agree with all the terms and you want the real estate agent to represent you.
By signing a BRA, you give up certain privileges and you gain some benefits:
The contract length is one of the first things included in a BRA. During the contract duration, your real estate agent is entitled to a commission on home purchases and must work in accordance with the terms set by the contract. A BRA should have a clause that addresses exactly when the agreement begins and when it expires. You are not required to buy a home or place a purchase offer during the contract duration.
The expiration can be set at any date, but if the contract length exceeds six months, the buyer must initial the document. This rarely happens, so these initials are usually omitted.
The holdover clause designates a period of time as the “Holdover Period”. During this period, which typically lasts between 30 and 90 days, the agent is entitled to a commission on a home purchase or lease introduced to the buyer during the original BRA contract length. This means that your real estate agent may still receive a commission even after the contract’s expiration. You should ask if a BRA includes a holdover clause.
Non-exclusive BRAs provide the same details as a regular BRA and they have a clause for commissions. However, the buyer may use any real estate agent to find a property and only the agent that found the property is compensated. The commission is often included in the purchase price and will always be paid for by the seller. This means that home buyers do not have to provide compensation to the real estate agent.
Buyer representation agreements are legally binding contracts so they are often difficult to cancel, but there are still many things you can do.