FAQs

In certain market conditions, sellers may find that more than one buyer is interested in their property.

This is a competing offer situation and creates unique conditions in a real estate transaction. Sellers need to consider how to respond when presented with a competing offer situation. Working closely with your real estate agent will ensure that you understand the process.

Your real estate agent represents your interests in the transaction. The decisions about how offers are presented and responded to, as well as which offer is accepted, are made by you.

Number of offers

Buyers in Ontario who have made an offer on a property are entitled to know the number of competing offers. Your real estate agent must share this information with every buyer who has submitted a written offer. If you want your agent to share the information with any interested buyers, you may direct them to do so. 

Content of offers

Sellers in Ontario choose how much other information, if any, they want to share about the offers they receive. Sellers are not required to share this information and agents working for sellers are not permitted to share any of the content of the offers unless the seller directs them to. 

If you are a seller

Here are the considerations to keep in mind as a seller:

• You decide how much information you want to share about the competing offers.
• Your agent will advise you based on the characteristics of your property, market conditions, the content of the offers you receive and other things. 
• You need to provide clear written direction to your agent before the content of any offers can be shared. 
• Personal or identifying information contained in offers cannot be shared. 

You might make this decision before or after offers are received. You can change your direction to the real estate agent at any time. 

Tips for sellers dealing with competing offers

A seller facing competing offers has to consider how they want to deal with the situation. The seller can decide to: 

• accept the best offer; 
• negotiate with one buyer and reject all other offers; 
• negotiate with one buyer and advise other buyers that their offers are being set aside while the seller negotiates; or 
• reject all offers. 

Part of the strategy may involve whether the content of competing offers is shared. 

Even in a competing offer situation, buyers have other options and may choose not to continue to participate. A seller may attempt to negotiate only to find out that it was the best offer the buyer could present. In the meantime, other buyers have found new properties they are interested in. 

If you decide to share the content of competing, a buyer may decide they do not want to participate in a process where the content of offers is shared or may take steps to protect the content of their offer.

Your real estate agent can provide advice and guidance, ensuring that the obligations and the options available are understood, and can help you navigate the complexities of dealing with competing offers.

When you purchase a home, it’s often recommended that you have a home inspection done. This is one of the most common conditions in an offer to purchase a property. 

When real estate markets are extremely active and you really want a particular home, skipping the home inspection and not placing this kind of condition in an offer can be tempting. Before you make the decision, consider the benefits of a home inspection.

If there is a Seller Property Information Statement (SPIS), you may receive a copy and have a general sense of comfort about the history of the property. However, you should keep in mind that the person selling the home may not be aware of property defects and that the information provided in the SPIS is based only on their personal knowledge.

Similarly, the real estate agent representing you in the transaction may have the experience to identify visually obvious defects, but underlying problems can exist.

A qualified and experienced home inspector will examine the major systems in the home such as:

• Electrical
• Roofing
• Plumbing
• Heating/Air Conditioning
• Foundation
• Septic Systems

Many home inspection companies encourage you to attend the inspection and ask the inspector questions during the process and about the results of the inspection. The decision is yours to make, but you will be better informed and able to assess whether or not you want to invest in any upgrades or repairs that might be needed.

When you become a client, you sign a representation agreement with the brokerage – a contract between you and the brokerage for real estate services and representation. 

If you don’t want to sign an agreement, you should not expect the real estate agent to provide you with any services, like showing you homes. 

Representation agreements can be called buyer representation agreements, or seller representation or listing agreements. Your agreement must be put in writing and presented to you as soon as possible. 

Protect yourself by reviewing the agreement in detail. This will help to avoid any misunderstandings between you and your real estate agent. 

 

An open house is an event where you open your home to potential buyers and allow them to tour the property without an appointment. It is a common marketing strategy used by realtors and homeowners to attract more interest and exposure for a home that is for sale. However, the effectiveness of open houses is debatable. Open houses may not lead to many sales, as only a small percentage of buyers visit them. Most buyers nowadays rely on the internet to search for homes and view photos and videos online. Open houses may also attract people who are not serious buyers, such as curious neighbours, window shoppers, or thieves. On the other hand, some sources suggest that open houses may have some benefits for sellers, such as: • Increasing the visibility and awareness of the home in the market • Creating a sense of urgency and competition among buyers • Generating feedback and insights from visitors • Showcasing the home’s features and potential in person • Selling the home for a higher price and in a shorter time Therefore, the answer to your question may depend on various factors, such as: • The location, condition, and price of your home • The demand and supply of homes in your area • The preferences and habits of buyers in your market • The quality and experience of your realtor and their marketing plan • The costs and risks involved in hosting an open house Ultimately, the decision to have an open house is up to you and your realtor. You should weigh the pros and cons of this strategy and consider your goals and expectations. You should also prepare your home and yourself for the open house, such as cleaning, staging, securing valuables, and finding a place to stay during the event. I hope this answer helps you understand the impact of open houses on home sales. If you have any other questions, please feel free to ask me.

This is an excellent question because buying or selling a home can be a complex transaction and you want the right person with the right expertise to help you.

In Ontario, all real estate agents must be registered with the Real Estate Council of Ontario (RECO) to be eligible to trade in real estate. So, when you hire an agent, you have some comfort that they will give you relevant guidance, are educated to deliver the advice and services, are insured, and are subject to professional standards and obligations.

Still, choosing an agent is an important personal decision, and there are some steps RECO recommends you take to find the right agent for you.

First, shop around. Get referrals from family or friends who have used an agent or look for one who is active in the neighbourhood in which you are selling or buying.

Buying or selling a home can be a complex transaction and you want the right person with the right expertise to help you.

In Ontario, all real estate agents must be registered with the Real Estate Council of Ontario (RECO) to be eligible to trade in real estate. So, when you hire an agent, you have some comfort that they will give you relevant guidance, are educated to deliver the advice and services, are insured, and are subject to professional standards and obligations. There are some steps RECO recommends for you to find the right agent for you:

Shop around

Get referrals from family or friends who have used an agent or look for one who is active in the neighbourhood in which you are selling or buying.

Interview before you hire

Interview a few agents and make sure you fully understand their experience, how they operate, and what services they offer.

Ask them to describe their knowledge and experience in real estate in a particular neighborhood and with a specific type of property. You can even ask them about their trading activity to understand the types of homes they have bought or sold recently. Sometimes that information is available through the brokerage’s website or other platforms.

Their approach to the buying and selling process is important too, since you want to be comfortable with their methods and sales philosophy.

If you are looking to buy, ask the salesperson how they will search for suitable properties and how they will negotiate with sellers. If you are selling your home, ask how it will be marketed to help attract buyers.

It is also wise to ask each agent for references from past clients and then follow up with those clients to hear about their experience with the agent.

Ask about services and fees

You will want to clarify what services the agent will offer or provide. Staging, professional photos, advertising and open houses are all services that may be offered. The services may vary from brokerage to brokerage and agent to agent. Take the time to understand what they bring.

It is important to know that commissions and fees vary between brokerages and may depend on the services you would want, so be sure to understand what will be provided and what it will cost. Review the contract carefully with the agent before you sign, and if you are unsure about something, you can seek the advice of a lawyer who is insured to practice real estate law.

Mortgage fraud continues to be an issue of concern for the real estate industry and the public.

As a regulatory body, RECO addresses mortgage fraud through education, investigative activities to ensure compliance, collaboration with organizations concerned about mortgage fraud and legal/statutory activities to impose disciplinary action on registrants found to have participated in mortgage fraud.

Enforcement

Mortgage fraud is a criminal act, and while RECO has no jurisdiction to prosecute under the Criminal Code of Canada, the Trust in Real Estate Services Act, 2002 gives RECO the power to investigate criminal offences that are relevant to a person’s fitness for registration under the Act. 

The Registrar’s position is that any registrant proven to have knowingly participated in mortgage fraud faces losing their registration. It should be noted that some registrants alleged to have participated in mortgage fraud voluntarily terminated their registration.

Collaboration

In order to effectively combat mortgage fraud, it needs to be addressed by all parties involved in the real estate transaction. Organizations such as the Law Society of Upper Canada, the Canadian Association of Accredited Mortgage Professionals and other real estate regulatory bodies are active in combating mortgage fraud either by releasing educational information or through collaborative efforts.

Consumer Tips

Avoid being an unwitting participant in mortgage fraud. Be suspicious of situations where you are:

• Asked to inflate (overstate) your income on a mortgage application, indicate you plan to live in a property being purchased as a rental property or provide other false statements.
• Asked to sign documents that contain blanks or asked not to complete certain sections of a form or document.
• Offered a fee for the use of your name and credit information.
• Discouraged from visiting the property, having the property appraised or inspecting the property you are purchasing.

If it sounds “too good to be true” it probably is.

The sale of a home can be a stressful and busy time for any homeowner which is why it is important to work closely with your registered real estate professional if you are planning an open house.

Your best approach is to ask as many questions as possible about what you need to do to prepare as well as making sure you understand what occurs during an open house.

While not an exhaustive list, here are some examples of questions you might want to ask your real estate agent:

• Will your agent be present during the open house?
• Will attendees of the open house be asked for identification?
• Will all attendees be escorted throughout the home, and will your agent limit the number of individuals in your home at any one time to ensure they are personally escorted?
• Will your agent check all doors, windows, and other access points prior to locking your home at the end of the open house?
• Ask your agent for advice on whether you should allow photographs or videos of your home to be taken by buyers or anyone else.

Some steps you can take to prepare for an open house:

• Remove small valuables from view.
• Relocate fragile items on tables or ledges that might easily be knocked over. 
• Remove medications from all rooms in the home including your medicine cabinet.
• Keep your bills, credit card receipts, and bank statements out of view. You may want to store them with your other valuables.
• Take inventory/pictures of your property and what was stored so you will know quickly if anything is missing.
• Consider removing personal photographs that may be on display.

Many real estate agents suggest their sellers put the house keys in a lockbox because this makes it easy for agents to gain access to the property to show the home to prospective buyers.

Lockboxes are a convenient and commonly used way to accommodate showings. But they do come with some potential risks.

You have no doubt seen a lockbox hanging from a door handle when you visited or passed by a property that’s for sale. Some newer electronic lockbox models have additional security features, such as the ability to alert the brokerage when the box has been opened, identify the real estate agent who opened it, record the time and date it was used, and only open it during specific scheduled showing times.

If you are contemplating whether to provide lockbox access to your home, here are a few things to bear in mind.

First and foremost, as a seller you are not required to provide lockbox access to keys for your property. Your agent can only give lockbox access to your home if you have provided consent, ideally in writing.

Many sellers do opt for a lockbox because it can be practical, especially when the home is vacant or located in an area that is distant from the seller’s brokerage. The alternative is for the buyer agents to travel to the seller’s brokerage or to the seller’s agent to get the key and to return it. You can see how time consuming that could be.

Agents, brokerages, and clients recognize that the use of lockboxes requires a significant amount of mutual trust. An agent is aware that the lockbox code cannot be shared with anyone who is unauthorized to enter the home because of the potential risk to real and personal property, privacy, safety and security of both buyers and sellers. They also understand they are responsible for the safekeeping of the property when they are showing it.

Buyer agents must get advance permission from the seller’s brokerage, the owner of the home, or if the property is being rented, the tenants. You can be assured that before using a lockbox to visit the home, they must always have a confirmed appointment so that there are no surprises.

Even with these safeguards in place, it’s important to be aware of some potential risks that come with using a lockbox. There is the possibility it could get broken into, or the wrong person could get unlawful access to the lockbox code.

You might think it’s easy to break a lockbox, but it’s likely easier to break into a property through a window or door.

Discuss lockboxes with your agent and ask questions about their brokerage’s lockbox security protocols to prevent the wrong people from accessing the key. Good questions to start the conversation are how often they change the code, and what type of lockbox they use. 

If you decide that you are not comfortable using a lockbox, talk to your agent and agree on a plan, in writing, to only show your home to interested buyers with scheduled appointments when your agent or you are present.

Whatever your reason for selling your home, it’s a big decision. A real estate agent can help you navigate the many steps and decisions involved in the home-selling process. Here are a few tips to get you started.

Find the right fit

Make sure the real estate agent you hire is a good fit for your needs. Make sure your approach and expectations are in alignment, check their references and search RECO’s Public Register to confirm they are registered.

Understand what you’re signing

Before you sign a listing agreement with a brokerage, ensure you know what it means, how long it will be in effect and what the different clauses mean. Ask questions and seek independent legal advice if you’d like a second opinion.

Show the facts

Ensure that all your home’s details in the listing are accurate, from the square footage, recent renovations, property taxes and lot dimensions to items that are and aren’t included (for example, water heater, appliances, light fixtures, window coverings). RECO recommends that any listing details be supported by invoices, receipts, or documentation.

Plan your showings or open house wisely

Be proactive. Speak with your real estate agent before the property is shown or an open house is held to set ground rules and identify ways to protect yourself and your property. 

Minimize risk. Remove all valuables and securely store anything with your personal information, like credit card statements and receipts.

Know your options

When reviewing offers on your home, the details of the offers will remain confidential between you and your real estate agent, unless you direct your agent to share the content. You may get multiple offers, and your agent is there to help you navigate any negotiations.

Budget accordingly

Remember that there are closing costs associated with selling a home: real estate commissions, legal fees, moving expenses, and more.

Expect the unexpected

If you’re purchasing another home, does the closing date on the sale of your current home align with your next home? Have a contingency plan in place in case the dates don’t match up.

That is a difficult question to answer, as there are many factors that affect the likelihood of finding a suitable house for a client. Some of these factors include: • The client’s budget, preferences, and expectations • The availability and affordability of houses in the desired area • The market conditions and competition from other buyers • The quality and experience of the realtor and their network Some of the reasons why buyers may not find a suitable house are: • They are too picky and have unrealistic expectations • They are not flexible or willing to compromise on certain features • They are not prepared or qualified to make an offer • They are not working with a professional and trustworthy realtor

That is a good question. A pre-approval is a process where a lender evaluates your income, debts, assets, and credit score to determine how much mortgage you can qualify for and at what interest rate. A pre-approval can help you establish your home buying budget, lock in a favourable rate, and show sellers that you are a serious and ready buyer. While a pre-approval is not mandatory before you contact me, it is highly recommended. Having a pre-approval will make your home search easier and faster, as you will know exactly what you can afford and what kind of properties to look for. It will also give you an edge over other buyers who may not have a pre-approval, especially in a competitive market where multiple offers are common. A pre-approval will also save you time and hassle when you are ready to make an offer, as you will already have most of the paperwork and documentation done. If you do not have a pre-approval yet, I can help you get one from a reputable lender. I have access to a network of mortgage professionals who can offer you the best rates and terms for your situation. All you need to do is provide some basic information and documents, such as your income, debts, assets, and credit report. The pre-approval process can take as little as an hour, depending on the lender and your circumstances. So, to answer your question, no, you do not need to have a pre-approval before you contact me, but it is a smart and beneficial move to get one as soon as possible. If you are interested in getting a pre-approval, please let me know and I will be happy to assist you. blush

Your real estate agent may ask you to complete an information statement about the property you are selling.  

The statement will provide information related to defects, renovations, and other pertinent property information, based on your knowledge and experience.

Before you complete the statement, you and your real estate agent need to be clear about how it might be used.

Information statement for your real estate agent

Your real estate agent may ask you to provide information about the property that is intended to help them support you in selling your property and identify any disclosures you, as the seller, are required to make by law. 

In this case, it should be clear that the information in the statement you are completing is for your real estate agent and is not to be shared with buyers. 

Information statement for interested buyers

Some sellers make information available to interested buyers. If you intend to prepare an information statement for this purpose, speak with your real estate agent about the pros and cons. 

This statement is sometimes referred to as a Seller Property Information Statement (SPIS). 

If you provide your real estate agent with an information statement that is intended to provide information to buyers, your real estate agent must disclose this fact to every interested buyer. If an interested buyer requests a copy of it, the real estate agent must provide it. 

In certain market conditions, buyers may find that more than one buyer is interested in a property.

This is a competing offer situation and creates unique conditions in a real estate transaction. Buyers need to consider how to respond when presented with a competing offer situation. Working closely with your real estate agent will ensure that you understand the process.

Your real estate agent represents your interests in the transaction. You make the final decisions related to your offer, including the important decision of whether you want to participate in a competing offer situation.

Number of competing offers

In Ontario, the seller’s real estate agent is required to disclose the number of competing offers to all buyers who have submitted a written offer. 

Content of competing offers

In Ontario, sellers choose how much information, if any, they want to share about the offers they receive. Sellers are not required to share this information and agents working for sellers are not permitted to share any of the content of the offers unless the seller directs them to. 

You should not expect the content of other offers to be shared or, if shared, that the information will include the offer price, closing date, or other specific information. 

As a buyer

• You decide whether you want to participate in a process where the content of your offer might be shared with other buyers.  
• Your agent can tell you the steps to take to avoid having the content of your offer shared with other buyers. 
• Be aware that the seller can make the decision to share the content of offers at any time. You may not know in advance. You may not know what parts of the offers will be shared.

Tips for buyers in a competing offer situation

In a competing offer situation, you may be tempted to offer more for the property than you planned to and/or remove conditions from offers that are intended to protect you.

Before participating in a competing offer situation, you should consider factors such as:

Offer price

How much can you afford to offer for the property and how much is the property worth? A high offer could enhance your chance of success. However, it may not be the best long-term financial decision for you. A competing offer situation does not necessarily mean that a property will sell for more than the asking price. Similarly, an offer that meets or exceeds the asking price will not guarantee that the offer is accepted.

Financing

Be aware that pre-qualifying for a mortgage does not safely eliminate the need for a financing condition in an offer.

Home inspection

In competing offer situations, it can be tempting not to include a clause in an offer that makes it conditional on a home inspection. While your offer might be more acceptable to the seller, you may later learn that there are property defects, required repairs or needed upgrades that you weren’t aware of. In some cases, this can be expensive in the short or long-term. Foregoing a home inspection is a significant risk that a buyer needs to carefully consider.

Multiple representation means a designated representative or brokerage represents more than one client, with competing interests, in the same transaction. This can happen in different ways, depending on the type of representation agreement you and the other clients have with the brokerage.

Under brokerage representation, multiple representation happens when:

• the brokerage represents both the buyer and seller in the same transaction, or 
• the brokerage represents two or more competing buyers interested in the same property.

This is true even when the clients are working with different real estate agents.

Under designated representation, multiple representation happens when:

• the same real estate agent is the designated representative for both the buyer and the seller in the same transaction, or 
• the same real estate agent is the designated representative for two or more competing buyers interested in the same property. 

Multiple representation is not permitted unless each of the clients involved agrees. You should seek independent professional advice (for example, from your real estate lawyer) before proceeding.

The brokerage or your designated representative has a duty to promote and protect your best interests and avoid conflicts of interest. If your brokerage or designated representative enters into an agreement with another client who has an interest in the same property as you, this places both clients in multiple representation. Multiple representation introduces risks you and the other client should consider.

It’s important to understand the risks. If you agree to multiple representation, the brokerage or designated representative:

• Must treat each of the clients involved in an objective and impartial manner;
• Cannot maintain undivided loyalty to you or promote and protect your interests over the interests of the other client; and,
• Cannot offer advice to you about such things as the price you should offer or accept or terms that should be included in an agreement of purchase and sale.

What to expect before you agree to multiple representation

The brokerage is required to provide you with a written disclosure that explains:

• how the brokerage’s duties or the designated representative’s duties to you will change;
• the differences in the services you will receive;
• any change to how much you pay the brokerage.

Until this information is disclosed in writing to all clients or prospective clients in the transaction, and they all agree in writing, the brokerage or designated representative cannot not take any further steps on behalf of any of the clients or prospective clients. 

Confidential information you provided to the brokerage or the designated representative when you were represented cannot be shared without your written consent.

You can refuse multiple representation

If you don’t agree, the brokerage or your designated representative is not allowed to proceed. 

Ask the brokerage or real estate agent about alternatives to multiple representation. For example, if you are a buyer, the brokerage could refer you to another brokerage or another designated representative to help you make an offer on the property.

Agreeing to multiple representation significantly reduces what the brokerage and its agents can do for you, which could have consequences and costs.

Your representation agreement should describe the duties owed to you, the services you will receive, your rights and responsibilities, what you will pay, and specific terms of the agreement, including how long the agreement will last and whether you can cancel it. 

Here are some key things to look for.

Type of representation

There are two kinds of representation agreements in Ontario:

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Brokerage representation agreement		Designated representation agreement
The brokerage and all its agents represent you and must promote and protect your best interests, but one of the brokerage’s real estate agents may be your primary contact.		One (or more) of the brokerage’s real estate agents is your designated representative. The agent(s) represent(s) you and must promote and protect your best interests. The brokerage and its other agents are required to treat you impartially and objectively.

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An important aspect of designated representation is that it reduces the likelihood of multiple representation. You can read more about multiple representation.

Designated representation was introduced in Ontario on December 1, 2023. Ask the real estate agent what type of representation the brokerage offers.

Name of your designated representative

If the contract is a designated representation agreement, the name of your designated representative will be included. More than one real estate agent working at the brokerage can be identified as your designated representative.

Scope

Your agreement should specify the scope of the engagement. 

If you are a seller, this means the agreement will identify the specific property. 

If you are a buyer, you should consider the scope of the agreement carefully. Your agreement might identify a specific property, a geographic area you are searching in, a type of property you are looking for, or other specific requirements. For example, if you are looking for both a house in a particular city, and a cottage property near a lake, and want to work with different real estate agents with local and property type expertise for each property, the scope should be clear in each of the agreements to avoid disputes about who you might have to pay if you buy a property. 

Services

The agreement must clearly set out the services you will receive. There is no standard set of services – brokerages offer a variety of service options. You choose the services you want that best meet your needs.

You might enter into an agreement with a brokerage for a specific purpose like, for example, having an agent prepare an offer on a property you want to buy, or viewing a specific property. Some sellers enter into an agreement solely for the purpose of having their property advertised on a local listing service. 

Ask the real estate agent about the available services or combination of services that may be right for you and your situation. If there are specific services you need or expect to receive, make sure they are included in the agreement or as a schedule to the agreement. Don’t assume a particular service will be provided if it’s not included in the agreement.

Payment amount and terms

You and the brokerage decide the amount you will pay for services. The amount is not fixed or approved by RECO, any government authority, or any real estate association or real estate board. 

You can agree to pay a fixed dollar amount, a percentage of the sale price, or a combination of both. The representation agreement cannot specify an amount based on the difference between a property’s listing price and what it sells for. 

Agreements must also identify circumstances in which the amounts agreed to might change and how they will change in each circumstance.

If you are a seller, your agreement needs to clearly indicate:

• the amount you agree to pay your brokerage (or how it will be calculated) for the services and representation you receive;
• the amount (or how it will be calculated) you agree to pay, if any, to compensate the buyer for their brokerage fees; and
• how the amounts you agree to pay will change if you consent to multiple representation.

If you are a buyer, your agreement needs to clearly indicate:

• the amount you agree to pay your brokerage (or how it will be calculated) for the services and representation you receive;
• how the amount you agree to pay will change if the seller agrees to cover some or all of your brokerage fees;
• how the amount you agree to pay will change if you consent to multiple representation.

Important note for buyers: A seller might not offer any amount to cover the fees you owe to your brokerage under your agreement. This could affect the amount you are able to offer for a property. Depending on your financial circumstances, you may not be able to afford to buy a property when the seller does not agree to pay your brokerage fees.

Termination provisions

The agreement should list all circumstances when the agreement can be terminated. Review when the brokerage can terminate the agreement, and make sure you are aware of any penalties or costs that might apply in each case. 

Two important circumstances to be aware of:

• Multiple representation:You do not have to agree to multiple representation, and your agreement should be clear about what happens in that situation. For example, the agreement could terminate completely, or you might be referred to another brokerage or designated representative for the specific transaction but otherwise remain under the agreement with the brokerage.
• Changing your designated representative:If you have entered a designated representation agreement, the brokerage cannot appoint a different designated representative unless you agree. The brokerage may ask to appoint someone else if, for example, your designated representative stops working with the brokerage, or is otherwise not available to provide the services and representation outlined in the agreement.

Expiry date

The agreement’s expiry date must appear prominently on the first page. There is no set time or standard term for a representation agreement: it can be in place for a day, a few weeks, or months. Consider how long you want the agreement to remain in place, and make sure you know when your agreement will expire.  Keep in mind that a holdover clause could mean you owe money even after the expiry of the agreement. 

Holdover clause

Most representation agreements include what is often called a holdover clause. The clause may require you to pay the brokerage fees for a purchase or sale even when the transaction happens after your representation agreement expires. The clause will specify the time the holdover clause is in effect from the date the agreement expires.

A holdover clause is designed to protect the brokerage, and there is no minimum or set time for a holdover period. If your agreement includes a holdover clause, make sure you agree to the length of the holdover period before you sign it.

For example, let’s say you are a seller, and your agreement includes a 30-day holdover clause. This means that even if your agreement has expired, under certain conditions, you might be obligated to pay the brokerage commission if you sell your home during the 30-day holdover period.

Similarly, assume you enter into a buyer agreement that includes a 30-day holdover clause and the agent shows you a home before the expiry of the contract. If you buy the home after the expiry of the agreement, but during the holdover period, you might be obligated to pay the brokerage commission.

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 to buyers and sellers as they navigate the complexities of real estate transactions.

You will also benefit from the duties the brokerage and agent owe to you as a client

Undivided loyalty

Your best interests are promoted and protected by the brokerage or agent representing you. As a client, your interests take priority over the interests 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 with anyone outside of the brokerage without your written consent, except where required by law, even after your client relationship ends. This includes, for example, your motivation for buying or selling, and the amount you would be willing to pay or accept.

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 to you and cannot provide any additional services to you unless you agree in writing to continue receiving services. 

You have responsibilities as a client

• Be clear about what you want and don’t want and make sure you share all information that might be relevant (for example, you might want zoning that permits your intended use, maybe a home office or another specific use, or you might not want a property where there has been a violent crime).
• Respond to your agent’s questions quickly.
• Understand the terms of your agreement with the brokerage.
• Pay the fees you have agreed on, even if an agreement to buy or sell later falls through because of your default or neglect.