Humber Course Material

V7.
3
Module 2: Documenting Relationships
Disclaimer: This is a reference document which contains pages from the Accessible eLearning module. You should
complete the eLearning module to proceed to the next step. Please note that the accessible module on the LMS
only contains the interactive pages and you need to go through the content of this document thoroughly to attempt
the interactive activities in the module.
Please use Adobe Acrobat Reader (Recommended version 9 or above) to navigate through this PDF.
Real Estate Salesperson Program ©2019 Real Estate Council of Ontario. All Rights Reserved. No part of this publication
may be reproduced, stored in a retrieval system, or transmitted, in any form or in any means – by electronic, mechanical,
photocopying, recording or otherwise without prior written permission, except for the personal use of the Real Estate
Salesperson Program learner.
©2019 Real Estate Council of Ontario

Module 2: Documenting Relationships
Documenting Relationships with Sellers and Buyers
As you learned earlier, establishing a relationship between the brokerage and a seller or a buyer can be done in
various ways, including by the words and actions of the parties or by way of a written agreement. The relationship
established, and the services being provided, can be unique to each seller or buyer. Therefore, documenting the
relationship is an important aspect of ensuring all parties understand their obligations and there is no
misunderstanding of the services being provided by the brokerage under the agreement.
Accurately documenting the relationship with a seller or a buyer is a regulatory requirement under REBBA. The Code
of Ethics requires specific information to be provided to a seller or a buyer prior to entering into any agreement, and
certain information to be included in any agreement. As a salesperson, you will be responsible for documenting the
relationship on behalf of your brokerage. Since the scope of the relationship can be created by your words or
actions alone, an undocumented relationship can lead to misunderstandings. All agreements should clearly set out
the obligations of all parties involved and any limitations to the services being provided by the brokerage to ensure
the expectations of a seller or a buyer are met.
To document the relationship with a seller or a buyer, as a salesperson, you will need to understand the type of
agreement to be used, be able to explain the contents of an agreement to a seller or a buyer, understand how to
amend, suspend, cancel, or assign an agreement based on events occurring after an agreement has been signed,
and be able to fulfill your obligations under REBBA relating to documenting a relationship.

To check your understanding of this module, you must complete all the activities in the online module.
While navigating through the online module, click the Legislation button to view laws and regulations related to
this module.
While navigating through the online module, click the KMS button to access the Knowledge Management System or
visit the Module Resources to find the list of all the KMS assets for this module.
The contents of the thumbnail icon and References from the module are added to support your learning
throughout this Accessible PDF.

Menu: Welcome to Documenting Relationships
Number of Lessons 9 Lessons
Lesson Number Lesson Name

Lesson 1 Registrant, Seller, and Buyer Obligations
Lesson 2 The Seller Representation Agreement
Lesson 3 The Buyer Representation Agreement
Lesson 4 The Seller Customer Service Agreement
Lesson 5 The Buyer Customer Service Agreement
Lesson 6 Altering the Terms of a Representation or a Customer Service Agreement
Lesson 7 Salesperson’s Obligations Regarding Services Provided
Lesson 8 Summary Practice Activities
Module Summary

Lesson 1 | Page 1 of 18
Lesson 1: Registrant, Seller, and Buyer Obligations
This lesson details the regulatory obligations when documenting a relationship with a seller or a buyer,
requirements regarding remuneration and other financial disclosures, additional disclosures relating to a
brokerage’s relationship to the parties, and the legal obligations of a seller and a buyer to a brokerage.

This lesson highlights your obligations as a salesperson when documenting relationships, your requirements for
disclosure regarding remuneration or other financial matters, and additional requirements relating to the
brokerage’s relationship with sellers and buyers. The lesson also details the legal obligations of a seller and a buyer
to a brokerage, and how these obligations vary whether it is a client or a customer relationship.
Upon completion of this lesson, you will be able to:

• Identify the regulatory obligations of a registrant regarding documenting a relationship with a seller and a
buyer
• Identify the regulatory obligations of a registrant regarding remuneration and other financial disclosures with
a seller and a buyer
• Identify the regulatory obligations of a registrant regarding disclosure requirements relating to relationships
with a seller and a buyer
• Identify legal obligations of a seller
• Identify legal obligations of a buyer

Introduction to the Regulatory Obligations of a Registrant

A salesperson must clearly describe the nature of the services they would provide when entering into an agreement
to represent or provide services to others in a real estate transaction. The Code of Ethics includes several
requirements related to entering into and documenting a relationship. These include:
● Before a seller or a buyer is asked to enter into a client or customer relationship with a brokerage, a
salesperson must provide information regarding service alternatives, types of services offered, and multiple
representation
● Specific information must be included in any agreement used to document a relationship
● A written document is required at the earliest practical opportunity and before an offer is made
● A salesperson must provide a copy of the agreement to each person
● Any document used must be current
As a salesperson, you are required to comply with these regulatory obligations as they are in place to help protect
consumers and to ensure appropriate disclosures and minimum standards are upheld by all registrants.
An important first step in ensuring that a seller or a buyer makes an informed decision when establishing a
relationship with a brokerage, is to accurately and fully explain the service options available to them. Clarifying and
documenting a relationship as early as possible is the best way to avoid misunderstandings. The following screens
detail the obligations under the Code relating to documenting a relationship with a seller or a buyer.

Registrant’s Obligations: Information before Agreements, Section 10 of the Code

of Ethics
A salesperson is required to discuss specific information with a seller or a buyer prior to entering into an agreement
for the purpose of trading in real estate. This information is provided to assist the seller or the buyer in making an
informed decision on the type of relationship and the services they will receive based on that relationship. The
information to be provided includes:
• The types of service alternatives that are available to the seller or the buyer in the circumstances including a
representation agreement or another type of agreement. This discussion should include the difference
between a client and a customer, and how services differ in these two types of relationships. You are also
expected to explain that there could be circumstances where the brokerage may represent more than one
client in the same transaction, which would result in a change to those services.
• The services that will be provided by the brokerage and the salesperson under each agreement. Services differ
according to the nature of the agreement; the seller and the buyer must understand this to avoid any
misunderstandings at a later time.

• The fact that circumstances may arise in which the brokerage could potentially represent more than one client
in the same trade in real estate. However, a brokerage cannot do this unless all of the clients represented by
the brokerage in the trade agree and confirm their agreement in writing.
• The nature of services that the brokerage would provide to each client if the brokerage represents more than
one client in the same trade.
• The fact that circumstances could arise in which the brokerage could provide services to more than one
customer in respect of the same trade and how the services may change.
• The fact that circumstances may arise where the brokerage could be representing a client and providing
services to customers within the same trade and how the services may change.
• The difference in services that the brokerage would provide to a customer versus the services it would provide
to a client in the same trade.
• The Code requires you to do your best to obtain a written acknowledgement that this discussion has taken
place at the earliest opportunity, but at the very latest, before an offer is made.
As a salesperson, you must ensure that all parties have received the required information before agreeing to
become a client or a customer of the brokerage. Failure to explain the service options available can result in a seller
or a buyer selecting a level of service that is not appropriate for their needs, or creating a misunderstanding of the
services being provided or the obligations owed.
For example, a buyer assumes that brokerages and salespersons are required to treat all information as confidential
and that the salesperson will provide advice on all aspects of a purchase. The salesperson has offered customer
service only to the buyer to avoid multiple representation, as the buyer is interested in purchasing a property listed
by the brokerage. Unaware of this, the buyer is disappointed in both the salesperson and the brokerage as they
were expecting services in excess of those being provided. The buyer expresses their dissatisfaction that the
salesperson shared information with the seller that the buyer thought would be held in confidence by the
salesperson. They file a complaint with RECO. As a salesperson, you can avoid such misunderstandings by clearly
explaining the services and obligations under each agreement to the seller or the buyer at the earliest opportunity,
to ensure they are clear as to the differences between a client relationship and customer relationship.

Registrant’s Obligations: Information before Agreements, Section 10 of the Code

of Ethics
Example 1
A salesperson is preparing material for her first listing presentation and wants to ensure that she is able to discuss
all of the requirements under the Code of Ethics before asking the seller to enter into a representation agreement.
She has copies of the seller representation agreement and the customer service agreement used by her brokerage.
The broker of record has assisted her by explaining in detail the services offered for both clients and customers.
They also review the brokerage services form produced by the brokerage to address client services, multiple
representation, services to more than one customer, representing clients while providing services to customers, and
specifics of limited services provided to customers. She will use this to obtain the seller’s signature to confirm that
the information is provided at the earliest practical opportunity and before an offer is made.
Example 2
A salesperson wants to ensure that each person attending their open house is aware of the information required by
the Code of Ethics relating to service alternatives and the services the brokerage provides to a client or a customer.
He has produced a “property feature sheet” containing minimal information about the property. If a visitor
expresses a deeper interest in the home, then more information would be provided along with information on
services that the brokerage could offer.
The following screens explore other obligations under the Code.

Regulatory Obligations Regarding Documenting a Relationship with a Seller and a

Buyer
The Code of Ethics contains additional provisions relating to a representation or customer service agreement.
The following six sections contain information about your regulatory obligations while documenting a
relationship.
Contents of All representation and customer service agreements must contain, at a minimum, specific
information as identified under the Code. Any written agreement between a brokerage and a
written
seller or a buyer must clearly, comprehensibly, and prominently specify:
agreements
• The effective date and expiry date of the agreement. There may be only one expiry date.
(Section 11 of • The method for calculating remuneration payable to the brokerage. In the case of an
the Code of agreement with a seller, the amount payable to any other brokerage.
Ethics) • How the remuneration will be paid to the brokerage.
• The services that the brokerage will provide under the agreement.
In addition, if the term of the agreement is more than six months, the expiry date must be
prominently displayed on the first page and the seller or the buyer must initial next to the date
acknowledging this term.
Example:
A broker of record provides brokerage pre-approved documents for all salespersons to use
when preparing a representation or a customer service agreement with a seller or a buyer.
The use of brokerage pre-approved forms ensures the salesperson does not put the
brokerage in a position of non-compliance with the Code.

Copies of When a brokerage enters into a written representation or customer service agreement with a
seller or a buyer, a copy of the agreement must immediately be given to everyone who signs
written
the agreement. This would require a salesperson, when meeting with the parties in person, to
agreements have sufficient copies of the agreement for all parties and the brokerage. If the agreement is
(Section 12 of being completed electronically (by fax or email), or if the parties sign the agreement
the Code of electronically, they are deemed to have received a copy of the agreement with the generated
receipt or confirmation as evidence of transmission.
Ethics)
Example:
A salesperson is meeting with the sellers of a residential property who have agreed to list their
property for sale with the brokerage. The salesperson has three copies of the seller
representation agreement and, immediately after signing, provides each seller with a copy of
the signed agreement and retains the third copy for the brokerage.
Seller If a brokerage enters into a verbal agreement with a seller to represent them in the listing and
marketing of a property, the agreement must be reduced to a written document, signed by the
representatio
brokerage and submitted to the seller for signing at the earliest opportunity and before an
n agreements offer is made.
(Section 13 of
As a salesperson, you may sign a representation or a customer service agreement on behalf of
the Code of the brokerage and present it to the seller for signing. Although the Code does not require the
Ethics) seller(s) to sign the agreement, in practice, a brokerage may have policies that require any
agreement with a seller to be signed prior to any marketing activity being undertaken for the
property. A seller representation agreement is also commonly referred to as a listing
agreement.
Example:
A seller has expressed an interest in selling a property. A salesperson explains the services
available to the seller under a representation or a customer service agreement. The
salesperson and the seller agree the brokerage will represent the seller, so the salesperson
prepares the seller representation agreement, signs it on behalf of the brokerage, and gives it
to the seller for signature. The seller agrees and signs two copies of the form. The salesperson
provides the seller with one copy and retains one copy for the brokerage.

Buyer If a brokerage enters into a verbal agreement with a buyer to represent them in the purchase
of a property, the agreement must be reduced to a written document, signed by the
representatio
brokerage, and submitted to the buyer for signing at the earliest opportunity, and before any
n agreements offer is made.
(Section 14 of
As a salesperson, you may sign the document on behalf of the brokerage. Although the Code
the Code of does not require the buyer(s) to sign the agreement, in practice, a brokerage may have policies
Ethics) and procedures relating to working with buyers and obtaining the buyers’ signatures.
Example:
The buyers have expressed interest in seeing various listed properties but are reluctant to sign
a representation agreement. The salesperson fully informs them of the brokerage’s services,
client/customer relationships, and reviews the buyer representation agreement. The
salesperson agrees to show the buyers three properties, one of which is of interest. The
buyers, now at the point of contemplating an offer, sign the buyer representation agreement.
Agreements If a brokerage enters into a verbal agreement with a seller or a buyer as a customer to
provide services in respect of a trade, the agreement must be reduced to a written
with document, signed by the brokerage, and submitted to the customer for signing at the earliest
customers opportunity, and before any offer is made.
(Section 15 of As a salesperson, you may sign this document on behalf of the brokerage. Although the Code
the Code of does not require the seller or the buyer as a customer(s) to sign the agreement, in practice, a
Ethics) brokerage may have policies relating to the use of a customer service agreement. These
policies may vary depending on whether the customer is a seller or a buyer. There are distinct
service agreements used for each, as the terms relating to providing services for a trade
differ.
Example:
A salesperson is holding an open house for a seller who has listed their property for sale with
the brokerage. A buyer who has viewed the home during the open house expresses an
interest in the property. The salesperson fully explains the service alternatives and that the
brokerage would be providing customer service to the buyer for this purchase to avoid
entering into multiple representation. The buyer agrees to these terms, so the salesperson

prepares a buyer customer service agreement, signs it on behalf of the brokerage, and
submits it to the buyer for signature. The buyer signs the customer service agreement prior to
discussing any details of an offer.
Current forms The Code also requires that all forms used in the course of a trade are current. As legislation
can change, a brokerage must ensure all salespersons are using up-to-date forms.
(Section 34 of
the Code of Example:
Ethics) A brokerage has a policy regarding the preparation of any form that includes measures to
ensure current forms are used and outdated forms are removed from circulation at the
brokerage. In addition, the broker of record conducts a detailed training session to ensure the
salespersons are complying with their obligations to use an updated form and their
understanding of any revision.

A couple contacts a salesperson to discuss selling their home. After the salesperson
explains the types of services available through his brokerage, the homeowners indicate
that they would like to be represented by the brokerage. The salesperson reviews the
seller representation agreement with them and explains the services the brokerage will
be providing under the agreement.
The Code of Ethics places certain obligations on a brokerage when documenting the
relationship with a seller. Which among the following actions by the salesperson comply with
regulatory obligations?
There are four options. There are multiple correct answers.
The salesperson prepares the seller representation agreement and has both sellers sign. The
1
salesperson immediately provides them with one copy and returns the second copy to the brokerage.
The salesperson identifies the amount of remuneration payable to the brokerage, including
2
any remuneration payable to another brokerage.
The salesperson identifies the expiry date of the listing as 60 days from the effective date and does not
3
ask the sellers to initial next to the expiry date on page one of the agreements.
The salesperson explains how the services provided by the brokerage would change if the brokerage
4 also represents the buyer in the transaction, and identifies that signing the representation agreement
provides full consent from the seller should this occur in the future.

A salesperson is meeting with a potential buyer for the first time and is discussing the
types of services available from his brokerage. The buyer explains that he would like help
in finding a property, but he doesn't want to be tied down to one brokerage and he
doesn't want to pay any remuneration. The buyer decides that customer service is his
best option.
Which statement is correct regarding the buyer customer service agreement?
There are four options. There is only one correct answer.
Since there is no obligation to pay remuneration and the buyer is free to work with any other
1
brokerage, there is no requirement for a written buyer customer service agreement.
A provision for the automatic extension of the expiry date is contained in the pre-printed wording of a
2
typical buyer customer service agreement.
Once a buyer customer service agreement is created and signed on behalf of a brokerage, a customer is
3
required to sign the document to establish the customer relationship.
While the brokerage is providing customer service to the buyer, they may also be representing the seller
4
of a property the buyer wishes to purchase.

Registrant’s Obligations Regarding Remuneration and Financial Disclosures
A salesperson and brokerage have certain regulatory obligations when it comes to remuneration and other
financial disclosures, which they need to keep in mind when documenting relationships.
The following four sections contain information about the different types of regulations regarding remuneration
and other financial disclosures with sellers and buyers.
Obligation related to charging A brokerage cannot charge remuneration for a trade unless there is a
written agreement that is signed by, or on behalf of, the person who
or collecting remuneration,
will pay the remuneration.
per Sections 13 and 14 of the
Code and Subsection 23(1) of There exists, under REBBA, a provision for remuneration to be payable
where an agreement to pay remuneration is not in writing, provided
O.Reg. 567/05 certain conditions exist. Remuneration may be payable, despite there
being no commission agreement documented, when:
• A salesperson has conveyed a written offer that is accepted by the
seller;
• A salesperson shows a property to the buyer, who subsequently
purchases the property; or
• The salesperson introduces the seller and the buyer, for the
purpose of discussing the acquisition or disposition of an interest
in real estate.
In such cases, the brokerage was the catalyst for the sale or purchase of
the property and may be able to claim remuneration.
Under Sections 13 and 14 of the Code, the salesperson, at the earliest
opportunity, is required to complete the appropriate agreement, sign it
on behalf of the brokerage, and present it to the party for signature.
The party is not obligated to sign the agreement. However, the

salesperson is also not obligated to work with a party who refuses to
sign. This is often a matter of brokerage policy.
Failing to properly document and discuss the client’s or the customer’s

obligation to pay remuneration may result in an invalid agreement,
resulting in the brokerage not getting paid, detrimental impact on the
salesperson’s and the brokerage’s reputation, and disciplinary action by
RECO.
Obligations regarding As previously detailed, REBBA contains various restrictions relating to

allowable ways of calculating commission or other remuneration payable to a brokerage. The
allowable methods include a fixed amount, a percentage of the sale
remuneration (Subsections price, or a combination of both.
36(1), (2), and (3) of the Act)
If there is no written agreement as to the amount, the remuneration is
then negotiated between the parties and in some cases, the courts may
be asked to intervene and determine the amount of remuneration
payable.
If the remuneration payable is a percentage of the sale price, the

percentage does not need to be fixed but can be a series of
percentages that decrease at specified amounts as the sale price
increases.
Remuneration cannot be based on the difference between the listing

price and the sale price of the property.
Many variations of remuneration calculations exist, with a percentage

of the sale price being the most common. Factors that could impact the
calculation of remuneration include the price range of the property and
service or marketing options being provided by the brokerage. To
ensure compliance with these obligations, a complete understanding of
the requirements under REBBA is needed.
Example 1:

A salesperson and a seller agree to the remuneration payable to the
brokerage as follows: A flat fee of $2,000 plus 3.5% of the sale price of
the property.
Example 2:
A seller’s property is listed for sale at $1,900,000 and the remuneration
rate payable to the brokerage has been agreed to as follows: 4% of the
sale price up to and including $500,000 and 2.5% of the sale price over
$500,000.
Obligations to disclose any Any direct or indirect financial benefit that a registrant, or a person
related to the registrant, may receive from another person in
direct or indirect benefit
connection with the services being provided by the registrant to a client
(Subsection 18(4) of the Code of must be disclosed in writing as soon as possible. This includes any
Ethics) commission or other remuneration that the brokerage may receive
from another person.
It does not matter whether the benefit is cash, a gift, or any other form
of financial benefit such as reward points. If a direct or indirect financial
benefit is to be received, specific details regarding that benefit must be
disclosed to the client in writing.
Any monetary compensation must be paid through the brokerage and
not directly to a salesperson.
Failure to disclose or obtain the client’s consent could jeopardize the
relationship and create legal liability (e.g., having to forfeit the benefit
received) for the brokerage and the salesperson.
Example:
A salesperson representing a buyer, has negotiated an offer, which has
been accepted. The salesperson has provided the buyer with
information on various lenders to obtain financing for the purchase.
The buyer has selected one of the lenders who has offered the
salesperson a referral fee. The salesperson fully discloses in writing the

terms of the referral fee, which is paid directly to the salesperson’s
brokerage.
Obligations when remuneration If a brokerage has an agreement with a seller or a buyer to pay
remuneration for a trade, the brokerage cannot collect remuneration
is being paid to the brokerage
from another person for the same trade unless specific disclosures are
from more than one person for made by the brokerage at the earliest opportunity.
the same trade (Subsection These disclosures must be made in writing at the earliest opportunity
18(5) of the Code of Ethics) and include:
● To the other person, the terms of the agreement with the seller or
the buyer regarding the payment of remuneration
● To the seller or the buyer, the terms of the agreement with the
other person regarding the payment of remuneration
Traditionally, remuneration is paid by a seller. However, buyers can
also be obligated to pay a brokerage remuneration under certain
conditions (see Lesson 3 for details).
Example:
A brokerage has an agreement with a seller to pay remuneration at the
rate of 4% of the sale price. The brokerage is also collecting a
remuneration from the buyer at the rate of 1% of the sale price. The
amount being paid by the seller is disclosed to the buyer, and the
amount being paid by the buyer is disclosed to the seller. The
disclosure is made in writing at the earliest opportunity and the
brokerage obtains consent from both parties to collect remuneration
twice for the same trade.

Registrant’s Obligations Regarding Remuneration and Financial Disclosures
A salesperson and brokerage have certain regulatory obligations when it comes to remuneration and other
financial disclosures, which they need to keep in mind when documenting relationships.
The following three sections contain information about the different types of regulations regarding remuneration
and other financial disclosures with sellers and buyers.
Obligations to not A salesperson may not indicate to any person, either directly or
indirectly, that the remuneration is fixed. Also not permitted would be
indicate remuneration is
any indication that remuneration must be approved by the
fixed or approved (Section administrative authority, a government authority, or a real estate board
9 of the Code of Ethics) or association.
Remuneration is negotiated with each seller and buyer and could be

based on the services the party is to receive, the location of the
property that requires additional time and distance to travel, or unique
skills required (e.g., a cottage on an island would require someone with
a Marine Operator’s License).
Brokerages could have policies and procedures relating to
remuneration that a salesperson must comply with when negotiating
remuneration with a seller or a buyer.
Example:
A salesperson is preparing to list a seller’s property for sale and
discusses the services the brokerage will provide under the agreement.
The salesperson indicates that although there are regulatory
requirements regarding how remuneration may be calculated, the
amount agreed to is negotiable between the seller and the brokerage.

Obligations to show all When a buyer is being represented by a brokerage, the buyer must be
informed of properties that meet the buyer’s criteria, without any
properties that meet a buyer’s
regard to the amount of remuneration, if any, the brokerage may be
criteria (Section 19 of the Code entitled to.
of Ethics) This requires a salesperson to inform a buyer of all properties that
meet their criteria, regardless of the amount of remuneration offered
to the brokerage. The buyer can then make an informed decision on
whether to view the property or not, taking into consideration any
remuneration obligations they may have.
Example:
A salesperson is reviewing potential properties to show to a buyer
client and selects six properties that meet the buyer’s general
requirements. When reviewing the listings, the salesperson notes that
one of the properties is paying a flat fee remuneration of $1,000 while
the other five are paying a percentage of the sale price ranging from 2%
to 3% of the sale price. The salesperson introduces all of the listings to
the buyer and explains any remuneration obligations the buyer would
have. The buyer then selects the listings that will be shown to them by
the salesperson.
Obligations regarding There are regulatory requirements regarding collecting a
remuneration from a seller or a buyer who is currently under an
remuneration when it is
agreement with another brokerage to pay remuneration. Unless a
known that there is an seller provides a written agreement to pay remuneration, a brokerage
unexpired agreement is not entitled to claim remuneration from the seller for a trade in real
(Subsection 33(3) of the Act estate if the brokerage knows there is an unexpired listing agreement
with another brokerage. Similarly, unless a buyer provides a written
and Subsection 23(2) of O. Reg. agreement to pay remuneration, a brokerage is not entitled to claim
567/05) remuneration from the buyer for a trade in real estate if the
brokerage knows that there is an unexpired buyer representation
agreement with another brokerage.

A salesperson would specifically confirm with a seller or a buyer that
they are not currently a party to an existing representation agreement
with another brokerage prior to entering into such an agreement with
the seller or the buyer. In Lessons 2 and 3, details regarding obtaining a
warranty from the seller or the buyer in a representation agreement
with the brokerage are explained.
Example:
A salesperson has been contacted by a seller who is interested in listing
their property for sale. The salesperson confirms the seller is not
currently a party to a representation agreement with any other
brokerage before entering into an agreement with the seller. When the
property is sold, and the transaction is completed, the brokerage is
permitted to collect the remuneration as agreed to.

While documenting a relationship with a seller or a buyer, a salesperson has certain obligations
regarding remuneration and other financial disclosures.
Which scenario shows the salesperson complying with their obligations for disclosure?
A salesperson finds a property being sold privately for a buyer client. The buyer has agreed to pay
remuneration to the salesperson’s brokerage. The seller signs a customer service agreement with the
salesperson’s brokerage and agrees to pay remuneration. The salesperson informs the buyer about the
1
terms of the brokerage’s agreement with the seller, but does not inform the seller about the
remuneration the brokerage will be receiving from the buyer as the seller is a customer, not a client.
A seller, while discussing remuneration with a salesperson, suggests the remuneration rate of 2% of the
2 selling price up to $250,000 and then 4% of the selling price for the amount above that. The salesperson
suggests the rate of remuneration be altered at $200,000 instead.
A salesperson, while discussing remuneration obligations with a seller, states their brokerage
3 is required to charge a remuneration rate of 5% for the trade as that is the minimum amount required
to place the listing on the local listing service.
A salesperson helps a buyer find their ideal home. The agreement is accepted, and the buyers ask the
salesperson if he knows of any moving companies. The salesperson’s brokerage has a business
4 relationship with a moving company from whom they receive a fee for referring anyone to them. The
salesperson refers the buyers to the moving company and provides a written disclosure regarding the
referral fees.

Disclosure Requirements Relating to Relationships
As a salesperson, you will have regulatory obligations for disclosure relating to the relationships and the services a
brokerage provides to sellers and buyers. The first step in these disclosures occurs when documenting
relationships. Other disclosures will occur prior to an offer.
The following four sections contain information about your obligations regarding disclosure requirements relating
to relationships with a seller and a buyer.
Disclosure before multiple A brokerage may not represent more than one client for the same trade,
unless the following information has been disclosed to all clients and
representation (Section 16 of
prospective clients, as soon as possible:
the Code of Ethics) ● The fact that the brokerage proposes to represent more than one
client in the same trade.
● The differences in the obligations, including the disclosure of
information or the services provided, if the brokerage were
representing only one client rather than more than one client in the
same trade.
Example:
A salesperson is discussing representation with a seller when listing their
property for sale. While explaining the services available from the
brokerage, the salesperson informs the seller that during the course of a
transaction, the buyer could also be a client of their brokerage. The
salesperson discusses the differences between their obligations, including
any disclosure of information and the services being provided, should the
brokerage represent more than one client in the same transaction.

Nature of relationship If a brokerage represents or provides services to more than one seller or
buyer for the same trade, each seller and buyer must be informed about
(Section 17 of the Code of
the nature of the relationship to each seller and buyer in writing as soon
Ethics) as possible and before any offer is made.
Examples of situations where the salesperson would need to disclose the
nature of the relationship include:
● The brokerage is representing both the seller and the buyer in the
same transaction (i.e., both the seller and the buyer are clients).
● The brokerage is representing the seller as a client and is providing
services to the buyer as a customer in the same transaction.
● The brokerage is representing the buyer as a client and is providing
services to the seller as a customer in the same transaction.
In the above situations, the written disclosure is required whether it is the
same salesperson working with the seller and the buyer, or different
salespersons employed by the brokerage working with the seller and the
buyer. In addition, the seller and the buyer must be informed about how
the information shared and the services being provided by the brokerage
will now change. Information regarding the nature of the brokerage’s
services when representing more than one client for the same trade are
detailed in Lessons 2 and 3.
Example:
A brokerage has listed a property for sale and is representing the seller in
the transaction. The listing salesperson has been advised an offer is being
received on the property. The buyer is represented by a different
salesperson in the same brokerage. Prior to the offer, a written disclosure
is made and signed by all parties that discloses the nature of the
brokerage’s relationship to each seller and buyer.
Inaccurate representations A registrant cannot knowingly make any inaccurate representations about
the services provided. As a salesperson, you may not mislead a seller or a
(Section 37(2) of the Code of
buyer about the services you provide, nor could you make an inaccurate
Ethics) representation in an advertisement related to your services.

Insurance requirements All registrants must be insured under the group insurance policy arranged
and administered by RECO. This requires each broker, and salesperson to
(Section 11 of O. Reg. 579/05)
maintain insurance. The coverage under the policy, which is important to
explain to sellers and buyers, is the errors and omissions and the deposit
protection. When explaining and documenting the relationship between a
brokerage and a seller or a buyer, you, as a salesperson, would advise
them of the relevant insurance.
Example:
A salesperson is discussing the services the brokerage could provide to a
buyer. During this discussion, the salesperson identifies the insurance
coverage for errors and omissions as well as the deposit protection for
any deposit the buyer submits and is placed in a brokerage’s trust
account. In addition, the salesperson signs a document confirming they
have maintained the required insurance policy.

A salesperson has certain obligations regarding disclosures they need to make to sellers
and/or buyers when it comes to brokerage relationships and providing services.
Which scenario shows a salesperson fulfilling their obligations?
A salesperson advertises that every seller who lists within the next 30 days will receive a gift valued at
$350. The gift is a two-hour staging of the home by the salesperson, something they usually do free of
1
charge as part of their regular marketing efforts. The gift was not specified in the advertisement as other
salespersons offer this service free of charge.
A salesperson explains to their buyer client prior to showing any properties, the fact that the brokerage
could also be representing a seller in the transaction and this is considered multiple representation.
2
However, if the seller is represented by a different salesperson in the brokerage, there will be no change
to the services being offered to the buyer.
A salesperson is preparing to draft an offer for their buyer on a property that is being sold privately. The
salesperson has documented a customer relationship with the seller and a client relationship with the
3
buyer. Although the relationships have been previously documented, the salesperson discloses in
writing and prior to any offer, the nature of the brokerage’s relationship to the seller and the buyer.
A salesperson is explaining the services they would provide to a buyer and has detailed the
requirements to maintain insurance. The salesperson states the brokerage must be insured under the
4
group insurance policy. A salesperson is not required to maintain insurance as all claims are made
against the brokerage and not the individual salesperson.

Introduction to the Legal Obligations of a Seller and a Buyer
As with salespersons, sellers and buyers also have legal obligations when it comes to relationships for a trade in real
estate. These obligations are tied to agency law, covered in Explaining Services Available to a Seller or Buyer. Typically,
the obligations for seller and buyer clients are indemnification, remuneration, and anything else they agree to in
writing in the agreement. Seller and buyer customers’ obligations, on the other hand, are limited to only what was
explicitly contained in the agreement.
It is very important for you, as a salesperson, to ensure that a seller or a buyer understands their legal obligations.
This can be achieved through explaining various scenarios where their obligations would apply and making sure
said obligations are included in the relevant relationship agreement. You should also make sure you direct the
seller’s or the buyer’s attention to every obligation and ensure that they understand each of those obligations
before signing the agreement. Failure to do so may result in a misunderstanding that may damage the clients’
relationship with the brokerage. This could also lead to a lawsuit if the seller or the buyer believes that they suffered
some loss because of the brokerage’s actions or inactions. Additionally, the reputation of the brokerage and
salesperson could also be affected.

Legal Obligations of a Seller and a Buyer
Both the seller and the buyer have certain obligations, including indemnifying the brokerage against legal liabilities,
paying the rightful remuneration, and carrying out any additional obligations that may be in the agreement.
The following three sections contain information about the legal obligations owed by a seller or a buyer to a
brokerage when being represented in the marketing of a property.
While navigating through the online module, click the KMS button in the Module Resources for tools and
information on this topic.
Indemnification As you learned earlier, a brokerage (the agent) must act according to
the lawful instructions of the seller or the buyer (the principal), and in
doing so, will not be held responsible for any liability, claim, loss, cost,
damage, or injury resulting from these acts.
In the seller representation agreement, the seller agrees not to hold the
brokerage or anyone else, which could include the co-operating
brokerage, responsible for any damage, theft, vandalism, or fire that
may occur during the marketing process, providing the brokerage is not
behaving negligently in carrying out its duties.
Example 1: Seller Obligation

A salesperson holding an open house has taken steps to safeguard the
property and ensures the property is locked at the end of the event.
Following the open house, the property is vandalized, and the seller
suffers a loss. Indemnification would result in the brokerage not being
liable to the seller for any loss.

The salesperson, in preparing the home for the marketplace, advises
the seller to secure or otherwise remove a valuable sculpture from the
coffee table in the living room. The seller does not follow the
salesperson’s guidance and during a showing by another salesperson,
the artwork is damaged by a prospective buyer. Should the seller
decide to sue the visitor and the brokerage for the cost of the sculpture,
they would likely be unsuccessful because they indemnified the
brokerage, and the salesperson acted responsibly. This indemnification
also extends to any liability, loss, damage, etc., as a result of the
property being affected by any contaminants or environmental
problems.
Example 3: Buyer Obligation

A salesperson shows a property to a buyer and discusses several
aspects of the property, which should be inspected by a professional.
The buyer purchases the property without any additional property
inspections being completed. After the transaction is completed, the
buyer notices water seepage in a section of the basement being
renovated that was previously not visible. Indemnification would result
in the brokerage not being liable to the buyer for any loss.
Remuneration As you learned earlier, a seller or a buyer (the principal) is obligated to

compensate the brokerage (the agent) for the services agreed to and
provided under an agreement. The brokerage’s remuneration must be
specified in the agreement and the terms fully met by the brokerage
for the obligation of remuneration to apply.

A seller agrees to pay the brokerage a remuneration rate of 2% of the
sale price of the property. During the listing period, the seller accepts
an offer and the transaction closes. Remuneration would result in the

seller compensating the brokerage as agreed to in the listing
agreement.
Example 2: Buyer Obligation

A buyer agrees the brokerage should receive a remuneration rate of
2.5% of the sale price for any property purchased during the term of
their agreement. The buyer purchases a property where the brokerage
is being compensated 1.5% of the sale price by the seller.
Remuneration would result in the buyer compensating the brokerage
for the additional 1% of the sale price as agreed to in the agreement.
The seller is obligated to compensate the brokerage if they bring the

seller a valid agreement of purchase and sale even after the expiry of
the agreement, for anyone introduced to the property during the listing
period, based on the holdover provision in the agreement. You will
learn more about this later in the module.
Additional obligations Additional obligations of a seller or a buyer may be included in an

agreement with a brokerage. These obligations must be specified in
specifically agreed to
the agreement for the brokerage to enforce the agreed-upon terms.
Seller Obligations
A. The seller agrees to pay remuneration as agreed to if an accepted
agreement of purchase and sale is not completed due to the
seller’s default or neglect.
Example 1:
A seller accepts an offer and the transaction is scheduled to close in
one week. The seller advises the brokerage they no longer want to sell
their property. Based on the other obligations agreed to, the seller
would be required to compensate the brokerage the agreed-upon
remuneration should the seller not proceed with the transaction.

B. The seller agrees to inform the brokerage if they receive any
direct enquiries or offers from any source whatsoever during
the term of the listing agreement. Should an offer be received,
the seller will advise the brokerage immediately.
Example 2:
A neighbour approaches a seller and indicates their relative is
interested in purchasing the property. The neighbour suggests selling it
privately to avoid paying remuneration to the brokerage. Based on the
other obligations agreed to, the seller would be required to
compensate the brokerage the agreed upon remuneration should the
seller complete a transaction without the participation of the
brokerage.
Buyer Obligations
A. The buyer agrees to pay remuneration as agreed to if an accepted
agreement of purchase and sale is not completed due to the
buyer’s default or neglect.
Example 1:
A buyer’s salesperson negotiates an offer that is accepted by a seller.
The offer was conditional upon the buyer obtaining financing, which
was approved by the lender. A notice of fulfillment regarding the
condition was delivered to the seller within the required time period.
Prior to the transaction closing, the lender withdraws approval as it
comes to light that the buyer had misrepresented his salary. Based on
the other obligations agreed to in the buyer representation agreement,
the buyer would be required to pay the brokerage the agreed upon
remuneration should the buyer not complete the transaction.
Additionally, the buyer would be responsible to compensate the seller
for any losses suffered as a result of their default.
B. The buyer agrees to inform the brokerage of any properties of
interest that comes to their attention from any source whatsoever

during the term of the agreement. Whether the brokerage has
introduced a property, or the buyer has located a property on
their own, any offer to purchase must be submitted through the
brokerage to the seller.
Example 2:
A buyer notices a property being sold privately that appears to meet
their criteria. Based on the other obligations agreed to, the buyer would
be required to compensate the brokerage the agreed upon
remuneration, should the buyer purchase the property without the
participation of the brokerage.

In the course of a trade, a seller has certain legal rights and obligations. Which of the
following scenarios show a seller adhering to those rights and obligations?
There are three options. There is only one correct answer.
A seller has entered into a representation agreement with a brokerage. The brokerage’s salesperson
finds a buyer who submits an offer that is accepted by the seller. However, the buyer does not close the
1 transaction citing personal reasons. Even though the transaction failed, the seller would still be obligated
to pay commission as the brokerage fulfilled its duty of bringing a buyer to the seller and it isn’t the
brokerage’s fault that the transaction could not proceed.
A salesperson is holding an open house on a seller’s property listed with the salesperson’s brokerage. A
buyer views the property but tells the salesperson that he is not interested. A few days later, the buyer
2
contacts the seller directly and suggests that they enter into an agreement without involving the
brokerage. The seller agrees and sells the property to the buyer.
A seller signs a customer service agreement with a brokerage and agrees to pay them remuneration if
they sell the property to the buyer named in the agreement. During the course of the agreement, a
3 different buyer approaches the seller directly and agrees to buy the house. The seller does not disclose
the enquiry to the brokerage, and the transaction to the other buyer closes successfully. The
brokerage’s salesperson learns about the transaction and approaches the seller for payment of
remuneration. The seller refuses to pay.

In the course of a trade, a buyer has certain legal obligations. Which of the following
scenarios show a buyer adhering to their obligations?
A salesperson drafts an offer for a buyer client and includes the washer and dryer. The offer is accepted
1 by the seller, but on closing the buyer discovers that the seller has taken the washer and dryer. The
buyer insists that it is the brokerage’s fault and sues the brokerage.
A buyer client goes to a builder’s model home without their salesperson and is impressed with the
workmanship and the apparent good value. They call up their salesperson and inform them that they
2
have found a home they really like. The salesperson and the buyers agree to meet at the model home
the next day to discuss a possible purchase.
A buyer has entered into a buyer customer service agreement with a brokerage. One day the buyer is
walking down the street and sees an open house. They visit the open house and decide to submit an
3
offer, which is accepted by the seller. They do not inform the brokerage as this topic had not come up
when the buyer signed the agreement with the brokerage.

Congratulations, you have completed the lesson!
There are five sections on this page with a summary of the key topics that were discussed in this lesson.
Obligations of a registrant As a salesperson, your regulatory obligations for documenting a relationship

regarding documenting a include:
• Providing information to a seller or a buyer describing the nature of
relationship
services they would provide before entering into an agreement. Clarifying
and documenting relationships as early as possible is the best way to
avoid misunderstandings.
• Explaining the minimum content included in the agreement, including the
effective date and expiry date of the agreement and the method of
remuneration payable to the brokerage.
• Reducing all agreements to writing before an offer is made, signing the
agreement on behalf of the brokerage, and presenting it to the seller or
the buyer for signature. A seller or a buyer is not obligated to sign.
• Providing written copies of the agreement to all parties involved
immediately after signing. If the agreement is communicated
electronically, receipt of the electronic copy constitutes receipt of the
agreement.
• Ensuring forms used by the brokerage comply with Section 34 of the Code
of Ethics.
Obligation of a registrant Your regulatory obligations regarding remuneration and other financial
regarding remuneration disclosures include:
and other financial • Calculating remuneration in a manner permitted by REBBA
disclosures • Disclosing a direct or indirect interest
• Disclosing when the brokerage has an agreement with more than one seller
and buyer for remuneration for the same trade

• Not indicating that remuneration is fixed or approved by the law, RECO or
any other government entity
• Informing the buyer client of all properties meeting the client’s criteria,
regardless of the remuneration involved
• Not claiming remuneration from the seller for a trade if the brokerage
knows that there is an unexpired listing agreement with another brokerage
Obligations of a registrant As salesperson, your regulatory obligations regarding disclosure requirements
regarding disclosure relating to relationships with a seller and a buyer include:
• Disclosing the possibility of multiple representation
requirements relating to
• Disclosing before multiple representation occurs
relationships
• Avoiding inaccurate representation of services being provided
• Having insurance
Obligations of a seller A seller’s legal obligations include:
• Indemnification
• Remuneration
• Any other obligation that may be contained in the agreement
These obligations apply only to seller clients. A seller customer’s legal obligations
are limited to only what they specifically agreed to as part of their agreement
with the brokerage.
Obligations of a buyer A buyer’s legal obligations include:
● Indemnification
● Remuneration
● Any other obligations that may be contained in the agreement
These obligations apply only to buyer clients. A buyer customer’s legal obligations
are limited to only what they specifically agreed to as part of their agreement
with the brokerage.

Lesson 2: The Seller Representation Agreement
This lesson introduces a seller representation agreement used to document a client relationship with a seller. The
lesson details the key components of this type of agreement, including the information typically included and the
signing or initialling requirements of both the seller and the brokerage.

As you learned earlier, organized real estate includes membership with a local real estate board, OREA, and CREA. If
you are a member, you will have access to standard forms and clauses available through organizations you belong
to. However, not all registrants choose to be members of organized real estate and may not have access to these
forms. As they are commonly used in trading, specific forms and clauses will be used throughout this module and
other modules for illustrative purposes. Images of OREA standard forms and clauses are included with permission
of the Ontario Real Estate Association (OREA).
This lesson introduces the seller representation agreement, also known as the listing agreement. This agreement is
used to document a client relationship between the brokerage and a seller. The lesson details the type of
information that is required, including the type of listing being taken, the terms of and parties to the agreement, the
various provisions outlining the obligations, services, and other terms agreed to by the parties, and the signing and
initialling requirements.

Documenting a seller representation agreement ensures there is no misunderstanding of the terms agreed to and
the services being provided, while also ensuring compliance with REBBA. The lesson includes exercises that explain
how to complete different parts of a seller representation agreement.
Upon completion of this lesson, the learner will be able to:

• Identify the types of listings
• Describe the type of information required to identify the terms of, and parties to, a seller representation
agreement
• Explain what a seller typically acknowledges and consents to in a seller representation agreement
• Explain what a seller typically warrants in a seller representation agreement
• Explain how to document remuneration in a seller representation agreement
• Explain the additional information typically included in a seller representation agreement
• Explain the signing and initialling requirements of a seller representation agreement
• Complete the information required to identify the terms of, and parties to, a seller representation agreement
• Complete the additional information typically required in a seller representation agreement
• Complete the signing and initialling requirements of a seller representation agreement
Throughout this lesson, you will participate in decision points to test your knowledge on the topics presented.

Introduction to a Seller Representation Agreement
As you learned earlier in this module, the obligations of a brokerage, the salesperson, the seller, and the buyer were
explained. These obligations would differ based on whether the seller or the buyer would be in a client or customer
relationship.
The type of relationship a brokerage and a seller can enter depends on several factors, such as the property type,
the knowledge and experience of a seller, and other factors unique to each situation. Since each type of relationship
has its own set of obligations, documenting the relationship under which the brokerage and the seller will work is
important. While a brokerage can have the same type of listing agreement with many different sellers, the terms of
each listing agreement can vary. Therefore, it is important for a brokerage to document the exact terms agreed to
with each seller.
A seller representation agreement documents the relationship between the seller and the brokerage, authorizing
the brokerage to act on the seller’s behalf in offering a property for sale on certain defined terms. This agreement
identifies the brokerage’s authority and limitations. It also identifies any seller obligations to the brokerage and
outlines the services the brokerage will provide. The scope of the authority granted in an agreement depends on the
type of listing.
An example of a form that may be used as a seller representation agreement is shown in its entirety at the end of
this lesson.

Introduction to Types of Listings
The first step to documenting a seller representation agreement is identifying the type of listing for the property.
The listing may be an exclusive listing with one brokerage, placed on a listing service inviting co-operation from
other brokerages, or an open listing. When selling a property, a seller can choose what services they want to receive
from the brokerage, including the type of listing.
The following screen explains each type of listing in detail.

Types of Listings
How a property is marketed and sold depends on the type of listing the seller chooses.
The following three sections contain information about the types of listing agreements.
Exclusive
In an exclusive listing, the seller gives the sole right to

market and sell their property to one brokerage. The
brokerage is authorized by the seller to sell their
property during the time specified in the agreement
and on the terms agreed to.
Only the brokerage with whom a seller has signed an

exclusive agreement is authorized to show the
property to potential buyers and the property would
typically not be advertised on a listing service. In some
instances, after the listing agreement has been signed,
the seller may agree to allow the brokerage to co-
operate with another brokerage. However, this
requires specific permission from the seller.

Typically, a seller and a brokerage agree to an
exclusive listing because the seller has given specific
instructions regarding the showing of the property that
the brokerage must follow. As many times an exclusive
listing could be priced at the higher end of values for
the trading area, this could include pre-qualifying any
potential buyer before viewing the property. Sellers
may request tighter control over showing the property
to protect their privacy and to ensure buyers are
qualified and not merely curious. One consideration
with an exclusive listing is that by restricting the
authority to sell the property to the listing brokerage,
buyers working with other brokerages may not know
of the property’s availability and miss the opportunity
to view and purchase the property.

Listing Service
A listing service is a member-only database that

provides access to properties that are available for sale
or lease. A property may be placed on a listing service
(e.g., a multiple listing service through a local real
estate board) if a seller wants wider exposure to more
potential buyers. This form of listing is the most
common. The authority to list is granted to only one
brokerage. However, the seller permits the listing
brokerage to co-operate with other brokerages in the
sale of the property.
A co-listing or shared listing is where a seller signs a

representation agreement with two or more
brokerages at the same time. There is only one listing
but two or more brokerages share the responsibilities
and the remuneration. This does not happen very
often but can be encountered when there are multiple
owners and they each want their own representation.
A good example is a separation or divorce. Oddly,
there are usually multiple signs on the property (one
for each salesperson/brokerage) that can be confusing
to the public and often indicates some form of an
unusual or crisis sale.

Open
An open listing or “For Sale By Owner” is when a seller

does not list their property with any brokerage,
however, the seller is willing to allow any brokerage to
show the property to a buyer. An open listing often is
identified by a sign on the property, stating “Brokers
Protected.” This sign means the seller will co-operate
with any brokerage and will compensate the brokerage
who first acquires a buyer ready, willing, and able to
meet the terms of the listing or secures the acceptance
by the seller of a satisfactory offer.
Typically, an agreement to pay remuneration is signed

between the brokerage and the seller rather than a
representation agreement. As such, the seller is not a
client and the brokerage does not owe the seller any
fiduciary obligations. Open listings are usually seen in
transactions involving office, retail, or industrial
properties.

Documenting a Seller Representation Agreement
A written representation agreement is used to document the brokerage’s relationship with a seller who is being
represented as a client. As a salesperson, you would document this relationship at the earliest opportunity to
prevent any confusion or misunderstandings about the obligations owed and the services being provided.
Starting with this lesson and throughout the module, we will review the type of information required when
documenting various relationships with sellers and buyers. A working knowledge of the contents of each form is
required, as your obligations require you to ensure a seller or a buyer fully understands any document prior to
signing.

Introduction to a Seller Representation Agreement
As you learned earlier in this module, the Code of Ethics sets out minimum requirements for all written
representation and customer service agreements. In addition to these minimum requirements, a seller
representation agreement will contain certain information to ensure the obligations owed, the authority granted,
and the terms under which the seller has agreed to offer their property for sale are documented. Any information
required for the completion of an agreement should be verified. For example, confirmation of the seller can be
obtained by reviewing a copy of the deed, assessment notice, or a municipal tax bill.
In addition to documenting the seller and property information, a representation agreement will contain additional
information, such as:
• The services the brokerage will provide under the agreement
• The seller’s obligations for indemnification and remuneration
• The brokerage’s obligations
• The brokerage’s actual authorities
• The limitations to the brokerage’s authority

As a salesperson, you need to prepare an accurate and complete seller representation agreement and explain the
contents to the seller. Prior to asking a seller to sign the agreement, you must ensure they have a clear
understanding of its contents and the obligations owed by all parties. The seller will be asked to sign and initial the
agreement, and any non-titled spouse will be asked to consent to the listing by also signing the agreement. Also
remember, under the Code of Ethics, a copy of the agreement is to be provided immediately upon signing.

Terms of and Parties to a Seller Representation Agreement
A seller representation agreement must identify the terms of the agreement and the parties to the agreement. This
includes identifying the type of listing, the brokerage’s information, the seller’s name, and the address of the
property being listed. The following screens will highlight the information you will be required to document
regarding the terms of, and parties to, the agreement:
• Listing agreement type
• Brokerage details
• Seller(s) details
• Address for listed property
• Effective and expiry dates for the agreement, and the six-month provision
• Listing price
• Seller’s representation and warranty

Listing Agreement Type
The type of listing being taken is to be determined, as this identifies whether the seller is authorizing the brokerage
to co-operate with any other brokerage in the marketing of the property. The decision on the type of listing, either
exclusive or through a listing service, is based on the discussions and recommendations of the salesperson.
Whichever option is selected, obtain the seller’s initials for the applicable option.
Brokerage Details
The full registered name and the contact information of the brokerage are identified in the agreement. As the
brokerage is the agent, the parties to the agreement indicate the brokerage’s name and not that of the
salesperson. The brokerage is identified as the “Listing Brokerage.”
A salesperson’s name is added later in the agreement, where signing to bind the Listing Brokerage and declaration
of insurance is provided.

For example, OREA Form 200 contains a section at the top that lets the seller choose between listing their property
as an exclusive listing or through a listing service. The seller indicates their choice by initialing the applicable option.
This section of the form also contains a line where the registered name of the brokerage will be entered, and the
telephone number will also be provided. They are then referred to as “Listing Brokerage” across the agreement.
From OREA Form 200: Listing Agreement. ©2022 Ontario Real Estate Association.
All rights reserved. Used under license.

Seller(s) Details
The legal name(s) of all registered owners of the property are identified. Only the name(s) listed on the title have
authority to sell the property.
If the seller is an individual, use their full legal name as registered. If the seller is an incorporated company,
business, or partnership, the registered name would be indicated as the owner. Under these circumstances, you
must verify the individual signing has the authority to sign on behalf of the entity.
Additional documents demonstrating the seller has the legal authority to sell a property, such as a power of
attorney or estate trustee, will need to be verified. In an upcoming module, you will learn about the specifics of
verifying and identifying parties to an agreement under various scenarios.

A non-titled spouse is not identified as a seller. Obtaining spousal consent is required for the sale of a matrimonial
home (as per the Family Law Act). Spousal consent is obtained further in a seller representation agreement, where
the seller signs.
Address for Listed Property
The address for the property must be inserted to identify the specific property being sold. The complete address
must be included and verified. A municipal address for urban properties including the town/city name may differ
from some addresses of rural properties. In some instances, a rural property’s address will be recorded based on
local standards (e.g., R.R. #1 Anytownship, Anyregion). The address for the property may also be found and verified
by using a survey of the property, municipal tax bill, or assessment notice. In most rural locations, numerical
designations are found at the entrance to identify the property; sometimes referred to the 911 number used by
emergency services such as fire, ambulance, police. This number can be used to identify a rural property’s address
in a listing agreement, for example 12345 Sixth Line.
Effective and Expiry Dates for the Agreement, and the Six-Month Provision
In compliance with the Code of Ethics, a representation agreement must include the date on which the agreement
takes effect and the date it expires. The seller needs to be aware of the time period for which they will be bound by
the agreement.
A new listing should not commence with a brokerage before a current listing expires, as this would obligate the
seller to two brokerages should the property sell during this time period. However, if the property is being listed for
sale as well as being offered for lease, two separate listings would be appropriate.
Additional regulatory obligations regarding the duration of the listing agreement must also be complied with. If the
listing period exceeds six months, the seller is required to provide consent by initialling next to the expiry date. This
must be prominently displayed on the first page of the agreement.

For example, OREA Form 200 contains a line where the legal name of the authorized seller will be entered. They are
then referred to as “Seller” throughout the agreement.
This section of the form also contains an area where the property address or legal description of the property is
entered and is referred to in context of the agreement as (“the Property”).
This section of the form also contains a line that sets out the term or “Listing Period” of the agreement, including the
date and time when it commences and ends. Enter a commencement date and an expiry date, in accordance with
Subsections 11(1)(a) and 11(3) of the Code.
This section of the form also provides details about how the listing duration is negotiable between the seller and the
listing brokerage.

Listing Price
The listing price is identified in both words and figures. The listing price and other terms, such as the effective and
expiry dates, are based on the seller’s request after discussing it fully with the brokerage’s salesperson. In an
upcoming module, you will learn how to provide a seller with the required information to assist them in arriving at
an appropriate listing price.
Seller’s Representation and Warranty
The seller’s representation and warranty are included to ensure the seller does not currently have the property
listed with another brokerage or have any agreement to pay remuneration to any other brokerage.
A leading practice is to ensure that the seller does not list their property with more than one brokerage at the same
time, as this could obligate the seller to pay remuneration to more than one brokerage.
The seller’s initials are obtained next to the statement to ensure the seller has read and understood this term of the
agreement.

For example, OREA Form 200 contains a line where the listing price for the property being listed is entered. The
listing price is entered in both words and numbers on the agreement.
This section of the form also contains a statement where the seller warrants that the property is not listed with any
other brokerage.


Documenting Terms and Parties to the Agreement
Now that you have reviewed the specific type of information required to identify the terms and parties in a seller
representation agreement, let us look at how all these elements come together in OREA Form 200, as an example.
1. Listing Agreement Type: OREA Form 200 contains a section at the top that lets the seller choose between
listing their property as an exclusive listing or through a listing service. The seller indicates their choice by
initialing the applicable option.
This section identifies the seller’s decision regarding the type of listing they want.
2. Brokerage details: OREA Form 200 contains a line where the registered name of the brokerage will be
entered, and the telephone number will also be provided. They are then referred to as “Listing Brokerage”
across the agreement.
This section contains the brokerage’s full registered name and contact details.
3. Seller(s) details: OREA Form 200 contains a line where the legal name of the authorized seller will be entered.
They are then referred to as “Seller” throughout the agreement.
Legal name(s) of all registered owners of the property are identified in this section.
4. Address for listed property: OREA Form 200 contains an area to include the property’s address or legal
description.
Complete address is added after verification for listing of the property in this section.
5. Effective and expiry dates for the agreement, and the six-month provision: OREA Form 200 contains an
area to enter a commencement date and an expiry date. The OREA form also contains a section that provides
details about how the listing duration is negotiable between the seller and the listing brokerage.
This section includes the date on which agreement takes effect and the date it expires and the six-month
provision.
6. Listing price: OREA Form 200 contains a line where the listing price for the property being listed is entered.
The listing price is entered in both words and numbers on the agreement.

Listing price of the property is identified in both words and figures in this section.
7. Seller’s representation and warranty: OREA Form 200 contains a section in bold type on the first page,
which mentions that the seller’s warranty with respect to an unexpired listing agreement is intended to protect
both seller and the brokerage with respect to remuneration.
In this section, the seller warrants that they have not currently listed the property with another brokerage or
have any pending remuneration to pay to any brokerage.

Rita of ABC Real Estate Inc. is meeting with two sellers, Mr. and Mrs. Lee. They like Rita’s
recommendation to increase exposure of their property and agree with her
recommendation for the type of listing. The Lees had previously tried to sell their
property privately and were asking $1,500,000. It was viewed by several buyers, but no
offer was received. As they want to sell within three months, they have taken Rita’s
advice for the listing price of $1,290,000 as current market conditions indicate there are
many listings, but not many buyers. The Lees are prepared to sign a seller
representation agreement with Rita to list their property for sale.
How should Rita complete the information on the seller representation agreement for Mr.
and Mrs. Lee? Select the best wording.
There are two options. There is only one correct answer.
“Mr. and Mrs. Lee, let’s get started. Your initials are needed to indicate that this is an Exclusive Listing
1
Agreement.”
“Mr. and Mrs. Lee, let’s get started. Your initials are needed to indicate that this is a Listing Service
2
Agreement.”

1 “The agreement is between yourselves and Rita Jonas, ABC Real Estate Inc.”
2 “The agreement is between yourselves and ABC Real Estate Inc.”

“I’m going to list your names as Amber Susan and David Arthur Lee in the seller’s section, given that you
1
both are owners of this property.”
“I’m going to list your names as Amber Susan Lee and David Arthur Lee in the seller’s section, given that
2
you both are owners of this property.”

1 “After our discussions about price, you have chosen to list the property at $1,290,000.”
2 “After our discussions about price, you have chosen to list the property at $1,500,000.”

“Finally, because you are looking to sell the property as quickly as possible, the listing period should
1
reflect that. We will show the listing period of August 1 to October 31.”
“Finally, because you are looking to sell the property as quickly as possible, the listing period should
2
reflect that. We will show the listing period of August 1 to March 31.”

Abigail Monroe is meeting with her brokerage’s salesperson, Jason, in her house located
at 635 Emerald Lane, City of Anycity, Region of Anyregion and has chosen XYZ Realty Ltd.
to help her sell her custom-designed home. She and Jason have discussed the details of
the relationship and the listing process. Abigail has requested discretion as she is
concerned about the potential publicity surrounding the sale of her home. Abigail hopes
to sell her estate for $7,000,000. Jason, after diligently researching the market, tells
Abigail that to get that price it may take longer than six months and suggests listing to
the end of January. Abigail agrees.
How should Jason list this information? Select the best wording.
“Abigail, let’s get started. I’ve already filled in much of the information we discussed previously. Your
1
initials are needed to indicate that this is an Exclusive Listing Agreement.”
“Abigail, let’s get started. I’ve already filled in much of the information we discussed previously. Your
2
initials are needed to indicate that this is a Listing Service Agreement.”

“Given that I’m your salesperson with XYZ Realty Ltd., I’m listing XYZ Realty Ltd. as the brokerage on this
1
form.”
“Given that I’m your salesperson with XYZ Realty Ltd., I’m listing Jason, XYZ Realty Ltd. as the brokerage
2
on this form.”

1 “I’m going to list your name as Abby Monroe in the Sellers section.”
2 “I’m going to list your name as Abigail Monroe in the Sellers section.”

“As I’ve explained, a luxury property like yours will likely take longer to sell so the duration of the listing
1
is more than six months, your initials are not required.”
“As I’ve explained, a luxury property like yours will likely take longer to sell so the duration of the listing
2
is more than six months, your initials are required.”

Introduction to Additional Information Typically Included in a Seller

Representation Agreement
In addition to identifying the terms of, and parties to, a seller representation agreement, an agreement will require
various provisions, which set out the services and duties the seller can expect from the brokerage. These provisions
also help to define the obligations of the parties, namely the seller and the brokerage.
As a salesperson, you should be familiar with the provisions in a representation agreement and be able to explain
these to the seller. The seller should know what their own role will be in the marketing of the property and their
obligations under the agreement, as well as a clear understanding of what they can expect from the brokerage and
salesperson. The following screens detail the various additional provisions that can be included in a seller
representation agreement.

Documenting Remuneration
The following provisions are typically found in a seller representation agreement to define the brokerage’s authority,
which will be explained to the seller prior to the seller signing the agreement.
The following screens highlight the information you require to understand the seller’s obligation to pay
remuneration and how it needs to be documented in the agreement:
• Definitions and interpretations
• Remuneration
• Holdover provision

Definitions and Interpretations
A seller representation agreement has a “definitions and interpretations” clause to establish and explain the terms
used in the agreement. The clause defines terms such as seller, buyer, real estate board, and other terms that are
synonymous with/have a common function within the agreement. For example, seller also means vendor. The
definitions clearly define who is considered to be introduced to the property. For example, if the property is shown
to one spouse and an offer is received from the other spouse, it is deemed the other spouse was introduced to
the property. This is important as an obligation of the seller relating to the payment of remuneration includes this
reference.

For example, OREA Form 200 contains a section that sets out definitions and interpretations of key terms used in
the agreement.

Remuneration
When explaining an agreement, the seller must fully understand their obligations to pay remuneration to the
brokerage. The amount of remuneration owed is negotiable between the seller and the brokerage and is based on
the services being provided by the brokerage under the agreement. In cases where a seller has agreed to allow
other brokerages to co-operate in the marketing of the property, the seller must agree to the portion of the gross
remuneration to be paid to a co-operating brokerage.
REBBA identifies the allowable ways a remuneration can be calculated:

• A percentage of the sale price
• A flat fee
• A combination of both
The seller must also understand that any remuneration paid is plus the applicable HST.
Remuneration is owed for any valid offer to purchase the property from any source whatsoever obtained during the
listing period, and on the terms and conditions set out in the listing agreement, or other terms and conditions the
seller may accept. In cases where a sale is not completed through the fault of the seller, the seller is still obligated to
pay remuneration to the listing brokerage. In cases where a sale does not complete through the fault of the buyer,
the listing brokerage would have no claim for remuneration from the seller. For example, a seller has accepted an
offer and the completion date is one week away. The seller’s transfer to another city has been cancelled and the
seller no longer wishes to sell their property. If the transaction does not complete due to the seller’s refusal to sell,
the remuneration that would have been paid upon the completion of the sale would still be owed to the brokerage.
The commission clause also provides the brokerage the authority to apply any buyer’s deposit held in trust by the
listing brokerage, to the remuneration payable once the transaction has been completed. If the deposit is less than
the total remuneration owed, the seller is obligated to pay the difference. If the deposit is more than the
remuneration owed, the surplus amount is paid to the seller.

Holdover Provision
Within the commission clause is a provision stating the brokerage is entitled to remuneration if a buyer is introduced
to, or shown, the property during the listing period and purchases the property during an identified time period
following the expiration of the listing. This is known as the holdover period and is a reasonable time-period negotiated
between the seller and the brokerage that begins immediately upon the representation agreement expiring. The
holdover period allows the listing brokerage to claim a remuneration in cases where a seller and a buyer negotiate the
sale of the property during this time period. The buyer must be introduced or shown the property during the listing
period for the holdover period to apply to that sale. The transaction does not need to be completed during the
holdover period, only the accepted offer must occur during that time. Any buyer first introduced or shown the
property after the listing period expires would not fall under the requirements of the holdover period.
Example 1: A seller lists their property with Brokerage A and agrees to pay a remuneration rate of 5%. A buyer is
shown the property during the term of the listing agreement but does not purchase the property. The listing expires
and there is a 90-day holdover period that is now in effect. During this time, the seller does not list their property for
sale with any brokerage; however, the seller accepts an offer from the buyer who was previously introduced. The
seller is obligated to pay the full remuneration rate of 5% to Brokerage A, as agreed to in the representation
agreement.

In some instances, following the expiration of the listing, a seller could agree to list their property with another
brokerage. If the holdover period falls within the term of the new listing, and a buyer who was introduced to, or
shown, the property during the first listing period purchases the property during the holdover period, the original
listing brokerage’s remuneration owed is reduced by the amount of remuneration paid under the new agreement. If
the remuneration in the new listing is equal to or greater than the remuneration stated in the original listing, then
no remuneration is payable.
Example 2: A seller lists their property with Brokerage A and agrees to pay a remuneration rate of 5%. A buyer is
introduced to the property during the term of the listing agreement but does not purchase the property. The listing
expires and a 90-day holdover period is now in effect. During this time, the seller lists their property for sale with
Brokerage B and agrees to pay a remuneration rate of 4.5% commission. If the buyer previously introduced to the
property purchases it during the holdover period, the seller is obligated to pay commission as follows:
• 4.5% to Brokerage B
• 0.5% to Brokerage A
A seller must have a clear understanding of their obligations for remuneration, both during the active period of the
listing agreement and the holdover period. Without clear knowledge, a seller may sell their property privately during
this time period, so you should ensure the seller understands their obligations. Advise the seller that under these
situations, they should contact the brokerage to complete the transaction, as remuneration is owed to the
brokerage. As a salesperson, when listing a property for sale that was previously listed with another brokerage, you
should enquire with the seller and explain any obligations they would owe under their previous agreement’s
holdover period.

For example, OREA Form 200 contains a clause that sets out the commission (remuneration) terms of the agreement.


Now that you have reviewed how remuneration is documented in a seller representation agreement, let us look at
how it is presented in OREA Form 200.
1. Definitions and interpretations: OREA Form 200 contains a section that sets out definitions and
interpretations of key terms used in the agreement.
This section contains a clause to establish and explain the terms used in the agreement.
2. Commission: OREA Form 200 contains a section that outlines the remuneration terms of the agreement.
This section explains the seller’s obligation to pay remuneration to the brokerage.
3. Holdover Provision: Within the Commission clause, OREA Form 200 contains information about the holdover
period.
This section contains a provision under which the brokerage is entitled to remuneration.

Brokerage Authorities, Seller Acknowledgements, and Warranties
The seller representation agreement has clauses and provisions that provide certain authorities to the brokerage to
be able to sell the property and offer competent service. The seller is also required to provide the brokerage specific
warranties in this regard.
The following screens highlight the information you require to understand the client’s obligation towards the
brokerage:
• Representation
• Multiple Representation
• Finders Fee
• Referral of Enquiries
• Marketing
• Warranty
• Indemnification and Insurance

• Family Law Act (spousal consent)
• Verification of Information
• Use and Distribution of Information

Representation Clause
The Code requires a salesperson to fully discuss the service options available and the types of representation (single
or multiple) that could occur. As a salesperson, you are required to provide this information to a seller at the earliest
opportunity, and prior to asking the seller to sign a listing agreement. The seller representation agreement contains
an acknowledgement that this information has been provided to the seller.
In addition, the agreement includes a clause stating that the seller consents to the brokerage listing properties
similar to the seller’s property and will not claim any conflict of interest. The agreement identifies that unless
otherwise informed, the co-operating brokerage is representing the interests of the buyer. This is known as
assumed buyer agency. Otherwise, the salesperson must disclose any alternate relationship, that is to say, sub-
agency. The remuneration paid to the co-operating brokerage is paid out of the remuneration the seller pays the
listing brokerage, unless otherwise agreed to in writing.
There could be situations where the listing brokerage also provides representation or customer service to other
sellers and buyers. A seller representation agreement indicates, as required under the Code, the brokerage will, in
writing, at the earliest opportunity and before any offer is made, inform all sellers and buyers of the nature of the
brokerage’s relationship to each seller and buyer. This requires a disclosure to be made before a seller or a buyer is
presented with an offer. The seller representation agreement does not replace the requirement for a written
disclosure at a later time.

For example, OREA Form 200 contains a clause called REPRESENTATION.

Multiple Representation
The Code requires you, as a salesperson, to explain the fact that the brokerage could enter into multiple
representation, but that this could only be done if all of the clients represented by the brokerage for that trade
consent in writing. The Code also requires you to explain the nature of the services that the brokerage could
provide to each client when working under multiple representation.
A seller representation agreement obtains the seller’s acknowledgement that multiple representation could occur.
However, it also states that the brokerage will disclose to the seller the circumstances that have arisen and allow the
seller to decide how to proceed. If the seller agrees to multiple representation, the brokerage must obtain the
seller’s written consent before it could represent both the seller and the buyer for a transaction. This consent must
be obtained at the earliest opportunity, and before an offer is submitted or presented. Therefore, an additional
written disclosure will be required at the time of an offer as the listing agreement does not fulfill your obligations.

Details of how multiple representation changes the relationship and the brokerage’s obligations and limitations are
also described in the representation agreement. The brokerage’s obligation is to remain impartial and to treat all
parties equally and fairly. The limitations to the services under multiple representation relate to the non-disclosure
of the motivation or personal information about the seller or the buyer, the potential price a buyer may pay, the
acceptable price a seller may accept, the price the buyer should offer or the price the seller should accept, and
terms of any other offer received by the seller. Should the seller or the buyer direct the brokerage to disclose how
much the seller may accept or the buyer may pay, the brokerage must receive these instructions in writing. Under
multiple representation, a salesperson should provide factual market information about comparable properties and
information known concerning the potential uses for the property to assist the seller and the buyer in coming to
their own conclusions.
In a transaction, documents given and received by the seller and the buyer are called notices. The representation
agreement gives the brokerage the authority to give and receive notices on the seller’s behalf. For example, this
would mean the seller is deemed to have received the notice when the brokerage has received it, whether or not the
seller has actually received it. The salesperson, on behalf of the brokerage, would then provide copies of any notices
received to the seller. However, when a brokerage is representing both the seller and the buyer in a transaction,
that is, multiple representation, the brokerage is not entitled or authorized to give or receive these notices. This
would require the notice to be provided directly to the seller or the buyer before it is deemed received. In an
upcoming module, information regarding the giving and receiving of notices will be detailed.

For example, OREA Form 200 contains a clause called MULTIPLE REPRESENTATION.

Finders Fee
This clause functions as both an acknowledgement and a consent for the listing brokerage to receive and retain a
finder’s fee from a third party in addition to the remuneration being paid. A written disclosure must still be
completed when the finder’s fee is being received, as this clause does not provide the required details for that
disclosure (in accordance with Subsection 18(4) of the Code).
Example:
A seller’s mortgage is coming due during the term of the listing and requires additional financing. The seller would
like to consult a mortgage broker and asks their salesperson for a referral. The seller selects one of the three
mortgage brokers that the salesperson recommends. When the mortgage broker pays the salesperson’s brokerage
a finder’s fee, the specific details of this are disclosed in writing to the seller. The brokerage is permitted to retain the
finder’s fee in addition to any remuneration paid by the seller for the sale of the home.

Referral of Enquiries
A seller must notify the brokerage immediately of all enquiries about the property during the listing period, no
matter who has made the enquiry. If the seller receives an offer submitted directly to them, the seller is obligated to
provide the offer to the brokerage before accepting or rejecting the offer.
If the seller accepts an offer during the listing period or the holdover period without notifying the brokerage, the
seller is obligated to pay the remuneration as stated in the agreement, within five days of the brokerage’s request.
A seller should clearly understand their obligations under this provision. Ensure there is no misunderstanding of the
seller’s obligation to refer any and all enquiries to the brokerage, and the resulting obligation to pay remuneration.
Example:
A relative of the seller learns the property has been listed for sale and approaches the seller during the listing
period to express their interest in purchasing the property. The relative is hoping to arrange a private sale with the
seller and pay a lower purchase price as the transaction would be completed without paying remuneration to the
brokerage. The seller declines and instead provides the relative with their salesperson’s contact information. The
seller has complied with their obligations under the agreement.
Marketing
The marketing clause is included in a seller representation agreement to give the brokerage the authority to
advertise the property.
This clause should provide the actual authorities granted to the brokerage regarding the marketing of the property.
The seller typically gives consent for the listing brokerage to do the following:
• Show and permit prospective buyers to inspect the property fully

• The sole and exclusive right to place a “For Sale” and a ”Sold” sign on the property
• The exclusive right to include information in any advertising that may identify the property, such as a photo
or address
• The sole and exclusive authority to make advertising decisions about the property during the course of the
agreement
• The listing brokerage will not be held liable for acts or omissions with respect to advertising the property by
the brokerage or any other party other than by the brokerage’s gross negligence or wilful act
Specific requirements under the Code of Ethics relate to any advertising done by a brokerage or salesperson. An
upcoming module will provide information on a brokerage’s advertising requirements when marketing a property
for sale or advertising a property as sold.
Warranty
This clause provides the brokerage with the seller’s warranty that the seller has the exclusive authority and power to
offer the property for sale. The seller must inform the listing brokerage about third-party interests or claims
concerning the property that may affect the sale. This would include any rights of first refusal, options, easements,
mortgages, or encumbrances.
Example:
A seller discloses to the listing salesperson an easement located on the property that provides access to a lake for
the adjoining property. This easement is included in the listing information, so any prospective buyer is made aware
of its existence.

For example, OREA Form 200 contains a clause called FINDERS FEES.
This section of the form also contains a clause called REFERRAL OF ENQUIRIES.
This section of the form also contains a clause called MARKETING.
This section of the form also contains a clause called WARRANTY.

Indemnification and Insurance
As you learned earlier, indemnification is a key legal obligation a seller owes to a brokerage. It is important that this
clause is included in a seller representation agreement and explained to the seller.
The clause identifies the seller will not hold the brokerage liable for any damage or loss to the property and its
content during the term of the agreement unless there is gross negligence or a wilful act by the brokerage. The
seller will also indemnify the brokerage, all salespersons, and any co-operating brokerage from any liability, claim,
loss, cost, damage, or injury caused or contributed to by any breach of a warranty or representation made by the
seller in the listing agreement or data form used to collect the property information used for the listing.
The seller will also warrant that the property is insured, including personal liability insurance against any claims or
lawsuits resulting from bodily injury or property damage to others occurring on or at the property. The seller must
indemnify the brokerage, salespersons, and co-operating brokerages if a claim is made by anyone who attends or
visits the property.
Example 1:

A salesperson explains the seller’s obligations for disclosure of any known latent defects. The seller states there are
no known problems that must be disclosed, and the brokerage documents this. However, the buyer discovers a
serious water leak in the basement after moving in and sues the seller, the salesperson, and the brokerage. In this
case, the seller may be liable to the brokerage for any losses they may suffer as a result of the seller’s non-
disclosure.
Example 2:
An open house is attended by many people at the same time. The salesperson is unable to keep track of all the
attendees and learns from the seller that an expensive statue has been stolen from the property. In this situation,
the brokerage could be considered liable for not taking steps to protect the property, such as limiting the number of
people in the home at the same time, insisting that all guests identify themselves and sign a guest register, and
advising the seller to remove all valuables during the public open house.
That said, if the salesperson secures the property both during and after the open house, and despite their caution
the house is broken into, the seller would be required to indemnify the brokerage against any loss.
Family Law Act (spousal consent)
A seller representation agreement will address situations where spousal consent is required. As detailed under a
previous module, the Family Law Act provides a non-titled spouse possessory rights to a matrimonial home. This
means the non-titled spouse has the right to possess the property. This is a personal right and is not an interest in
the land.
A listing agreement will include a statement made by the seller warranting that spousal consent is not necessary,
unless the spouse of the seller has signed the consent provided later in the agreement. Therefore, it is a leading
practice when listing a matrimonial home for sale and only one spouse is on title, to obtain the consent of the non-
titled spouse. For the ownership of the property to be transferred, the consent of the non-titled spouse must be
obtained. Having consent by the non-titled spouse in any documents leading up to the transfer of title will prevent
any misunderstandings or problems when the transaction is to be completed.
Example:

A married couple decides to list their family home for sale. The husband is not on title for the property. When
explaining the listing agreement to the couple, the salesperson explains the clause warranting that if spousal
consent is necessary, the spouse has signed the agreement. In this instance, the husband’s spousal consent would
be obtained for the listing agreement.
Verification of Information
A seller representation agreement provides authority to the brokerage to verify information, whether provided by
the seller or obtained elsewhere by the brokerage. This authority extends to obtaining information affecting the
property from relevant regulatory authorities such as governments, mortgagees, etc.
By including this provision in a seller representation agreement, the seller is authorizing others to release any and
all information to the brokerage.
That said, agencies and lenders may not recognize this provision. This would require separate written consent from
the seller, or the party may only release information directly to the seller regardless of their written permission.
Example:
The seller has misplaced their current tax bill and is uncertain about the amount of tax they paid last year. The seller
authorizes the salesperson to contact the local municipal office to obtain and verify the information on the seller’s
behalf.

For example, OREA Form 200 contains a clause called INDEMNIFICATION AND INSURANCE.
This section of the form also contains a clause called FAMILY LAW ACT.
This area of the form also contains a section for the signature of the non-owner spouse to grant spousal consent.
This section of the form also contains a clause called VERIFICATION OF INFORMATION.

Use and Distribution of Information
This provision is included in a seller representation agreement to ensure the brokerage complies with privacy laws.
The seller’s consent is required to allow the listing brokerage to collect, use, and disclose any information for the
purpose of marketing the property. This also includes the use of photographs, surveys, floor plans, virtual tours, etc.
If the listing is placed on a local listing service, the seller also consents to the sale information being posted into the
database, and this information may also be shared with other parties approved by the local listing service. This
could include any other brokerage, third-party service professionals such as an appraiser, government departments,
and municipal organizations. In the case where information is stored on databases located outside of Canada, the
listing agreement identifies the information would be subject to the laws of the jurisdiction in which the information
is located.
When a listing expires, the seller can select whether other brokerages and salespersons may contact them to
discuss listing or marketing the property. A salesperson would obtain the seller’s initials to indicate whether or not
they can be contacted. In instances where the listing is placed on a local listing service, this information would be
made available to other brokerages.

For example, OREA Form 200 contains a clause called USE AND DISTRIBUTION OF INFORMATION.


Listing Agreement, Seller Representation Agreement, Authority to Offer for Sale
Now that you have reviewed various clauses in a listing agreement, let us look at how all these elements come
together in OREA Form 200.
The background shows a thumbnail for page 1 and 2 of OREA Form 200: Listing Agreement. This page includes the
following sections:
1. Representation: OREA Form 200 contains a clause where the seller acknowledges that the listing brokerage
provided the seller with information explaining agency and customer service relationships.
This section identifies the requirement for the salesperson to fully disclose the service options available and
the types of representation that could occur.
2. Multiple Representation: OREA Form 200 contains a clause about the possibility of multiple representation
arising.
This section of the form outlines to the seller the fact that the brokerage could enter into multiple
representations.
3. Finders Fee: OREA Form 200 contains a clause that addresses finder’s fees paid to the brokerage.
This section outlines the seller’s acknowledgement and a consent for the listing brokerage to receive and
retain a finder’s fee from a third party apart from remuneration payable.
4. Referral of Enquiries: OREA Form 200 contains a clause that the seller will inform the brokerage immediately
about any enquiries that are made directly to the seller.
This section outlines the seller’s requirement to notify the brokerage immediately about all enquiries about the
property during the listing period.
5. Marketing: OREA Form 200 contains a clause that allows the brokerage to market the property.
This section outlines the clause that provides authorities to the brokerage to market the property
appropriately.


Listing Agreement, Seller Representation Agreement, Authority to Offer for Sale
Now that you have reviewed various clauses in a listing agreement, let us look at how all these elements come
together in OREA Form 200.
The background shows a thumbnail for page 1and 2 of OREA Form 200: Listing Agreement. This page includes the
following sections:
1. Warranty: OREA Form 200 contains a clause the seller warranties.
This section contain a clause that is used to ensure that the seller will provide the listing brokerage with
information on third-party interests or claims about the property.
2. Indemnification and Insurance: OREA Form 200 contains a clause relieving the brokerage of any damage or
loss to the property.
This section contain a clause that is used to ensure that the seller does not hold the brokerage liable for any
damage or loss to the property and its content during the term of the agreement, unless there is gross
negligence or a wilful act by the brokerage.
3. Family Law Act: OREA Form 200 contains a clause regarding the need for spousal consent. This form also
contains a section on the last page for the signature of the non-owner spouse to grant spousal consent.
This section contain a clause that is used to confirm that spousal consent is not necessary, unless the spouse
of the seller has signed the consent provided later in the agreement.
4. Verification of information: OREA Form 200 contains a clause where the seller authorized the brokerage to
verify information about the property.
This section contain a clause that is used to provide authority to the brokerage to verify information about the
seller(s) and the said property.
5. Use and Distribution of Information: OREA Form 200 contains a clause stating that the brokerage will
comply with privacy laws.
This section contain a clause that is used to ensure that the brokerage complies with privacy laws.

A salesperson for ABC Real Estate Inc. is representing a seller in the sale of his property.
They have signed a seller representation agreement effective January 15 and expiring on
April 30. There is a 60-day holdover period and the agreed upon remuneration is 5% of
the selling price.
Identify the scenario in which the seller would owe remuneration to ABC Real Estate Inc.
A salesperson from another brokerage shows the property to a buyer a week after the listing is effective.
1 An offer is made, but negotiations fail, and no other offer is received prior to the listing agreement
expiring. Three months after the expiry, the seller sells his property privately to the same buyer.
A buyer views the property with a salesperson but does not place an offer. The listing expires and the
following week the seller signs a listing agreement with another brokerage and agrees to pay a
2
remuneration rate of 5.5%. The same buyer is shown the property that week by the new brokerage
and the property is sold to them at that time.
A buyer views the property during an open house held by the salesperson but does not submit an offer.
When the listing expires, the seller does not list the property for sale with another brokerage. Seven
3 weeks after the expiry of the listing, the seller sells the property privately to the buyer who viewed it
during the open house held by the salesperson, but the sale is not closed until after the holdover period
has expired.
During the holdover period of the listing with ABC Real Estate Inc., a buyer views the property for the first
time. The seller has not listed the property for sale with a brokerage and the buyer purchases the
4
property during the holdover period. The transaction is agreed to and it closes within the holdover
period.

Before a seller is asked to sign a representation agreement, it is important for a

salesperson to explain the various possibilities of representation and multiple
representation and how, in each case, the salesperson’s obligations and services
provided to the seller may change.
Identify the actions performed by the salesperson that comply with the seller’s
representation clause of the agreement. In all scenarios, the seller has signed a
representation agreement with the brokerage and there have been no revisions made to the
pre-printed clause.
During the listing agreement, the seller notices the same salesperson has listed for sale another
1 property similar to theirs on the same street. The seller confronts the salesperson claiming that this is a
conflict of interest.
A seller has been advised the brokerage cannot disclose how much the buyer should offer or the seller
should accept when the brokerage is working under multiple representation. The salesperson can,
2
however, provide copies of sales and listings so the seller can come to their own conclusions regarding
an appropriate price.
An offer is received from a buyer who is also being represented by the listing brokerage. During
negotiations, the buyer becomes concerned their offer will not be accepted. The buyer tells the
3 salesperson they would offer more if the seller does not accept their offer. The seller decides the offer is
too low and is about to reject it, so the salesperson informs the seller about the buyer’s willingness to
pay more.
The listing brokerage has received a notice from a buyer regarding their offer that was accepted two
days ago by the seller. The buyer is also being represented by the listing brokerage. The salesperson
4
indicates to the seller that although the brokerage has received the notice, the notice is not deemed to
be received by the seller until it has been provided to them personally or as otherwise provided for in
the Agreement of Purchase and Sale.

Additional Information Included in a Seller Representation Agreement
There are other important clauses that make up the seller representation agreement. These clauses establish the
procedural and legal requirements of the parties (i.e., the brokerage and the seller).
The following screens will highlight the additional information typically included in a seller representation
agreement:
• Successors and assigns
• Conflict or discrepancy
• Electronic communication
• Electronic signatures
• Schedule(s)

Successors and Assigns
This clause identifies that when a seller representation agreement has been signed, any heir, estate trustee, or other
party acting on behalf of the seller must also abide by the terms and conditions of the agreement.
Conflict or Discrepancy
If something is added to the agreement that conflicts with any pre-printed portion of the seller representation
agreement, then the added part supersedes the pre-printed portion.

Example:
When discussing the listing agreement with a seller, the seller informs the salesperson that he does not wish for a
sign to be on the property for the first two weeks of the listing, and once the property is sold the sign is to be
removed. The salesperson attaches a schedule to the listing agreement identifying these terms. As a result of adding
these terms, there is now a discrepancy between the pre-printed clause allowing the brokerage to place a “For Sale”
and a “Sold” sign on the property. Based on the wording of the “Conflict or Discrepancy” clause, the terms added to
the agreement will override the pre-printed portion.
Electronic Communication
In today’s marketplace, technology plays an important part in the communication between sellers and brokerages.
Many times, communication is done electronically, such as through email or fax. This provision identifies that any
communications may occur electronically, and the signatures are deemed to be original. The clause also states that
if the seller transmits the agreement electronically to the brokerage, it is deemed the seller has retained a true copy
of the agreement. This last section is important as the Code requires you to provide a copy of the agreement to each
party immediately after signing. This statement facilitates compliance with the requirements under the Code.
Example:
A seller is out of town but has agreed to list their property for sale with the brokerage. The salesperson sends the
agreement to the seller via email and explains all the terms in detail. The seller agrees with the terms, signs the
listing agreement, and emails it to the salesperson. The seller’s signature is deemed to be an original, and the seller
is deemed to have retained a true copy of the agreement.
Electronic Signatures
If the seller and the brokerage wish to sign the seller representation agreement electronically, this clause provides
the consent to do so. Including such a provision in a seller representation agreement identifies if the agreement has
been signed electronically, and the parties have consented, pursuant to the Electronic Commerce Act. Consent is only
granted for this agreement. Any additional documentation signed by an electronic signature will require a separate

clause indicating the parties have consented. Additional information on the Electronic Commerce Act was detailed in a
previous module.
Schedule(s)
If any terms or documents are added to a seller representation agreement, schedules can be used. The schedules
attached to the agreement should be identified on the agreement to ensure no documentation is misplaced.
The schedule should contain cross-references to the original seller representation agreement, such as the address
of the property, the name of the seller, the name of the brokerage, and the listing date. The seller and listing
brokerage should initial each schedule and these schedules should be attached to the listing agreement in a
sequential order, for example Schedule A, Schedule B, etc.
Example:
A seller has been negotiating the private sale of her property with a neighbour for some time. The neighbour cannot
decide whether they want to purchase the property, so the seller has decided to list the property with a brokerage.
The seller is concerned the neighbour will suddenly decide to purchase the property now that it is listed for sale, and
does not want to pay remuneration if this occurs within a specified time period. If the brokerage agrees to these
terms, this buyer can be excluded from the listing agreement by either inserting a clause in the internal remarks
area or adding a schedule to the agreement detailing the terms of the excluded buyer arrangement.

For example, OREA Form 200 contains a clause called SUCCESSORS AND ASSIGNS.
This section of the form also contains a clause called CONFLICT OR DISCREPANCY.
This section of the form also contains a clause called ELECTRONIC COMMUNICATION.
This section of the form also contains a clause called ELECTRONIC SIGNATURES.
This section of the form also contains a clause called SCHEDULE(S).


Additional Information Included in a Seller Representation Agreement
Now that you have reviewed the additional information typically included in a seller representation agreement,
letus look at how all these elements come together in OREA Form 200.
1. Successors and assigns: OREA Form 200 contains a clause that addresses that the seller’s legal
representatives will fulfill the transaction in the event the seller dies.
This section outlines that if the party to a contract is incapable of closing the transaction for a variety of
reasons, this clause requires that their lawful representatives act on their behalf to complete the transaction.
2. Conflict or discrepancy: OREA Form 200 contains a clause to address the circumstances where an addition is
made to the contract and it conflicts with a pre-set clause within the agreement.
This section outlines the clause used to ensure that an added part of a seller representation agreement
supersedes the pre-printed portion.
3. Electronic communication: OREA Form 200 contains a clause to address the use of electronic
communications.
This section outlines thee clause used to make the seller aware that any communication may occur
electronically, and the signatures are deemed to be original.
4. Electronic signatures: OREA Form 200 contains a clause that addresses the use of electronic signatures.
This section outlines the clause used to provide the seller and brokerage consent if they wish to sign the seller
representation agreement electronically.
5. Schedule(s): OREA Form 200 contains a clause that ends with the following: “…attached hereto form(s) part of
this Agreement.”
This section outlines the clause that is inserted in the event that if any terms or documents are added to the
seller representation agreement, schedules can be used.

Marketing provision allows the listing brokerage to show the property to prospective
buyers and place a “For Sale” and “Sold” sign on the property.
Identify if this statement is true.
True False

A salesperson should explain all the provisions included in the representation agreement
at the time it is given to the seller for signature. Each party will then clearly understand
what services will be provided, and the obligations each party will have under the
agreement.
Which provision allows the listing brokerage to confirm that the seller has the necessary
authority to offer their property for sale and confirms the seller has disclosed other interests
or claims concerning the property?
1 Warranty
2 Indemnification and insurance

A salesperson should explain all the provisions included in the representation agreement
at the time it is given to the seller for signature. Each party will then clearly understand
what services will be provided, and the obligations each party will have under the
agreement.
Which provision is a warranty from the seller that if spousal consent is necessary, the spouse
has signed the agreement?
1 Family Law Act

2 Verification of information

A salesperson is required to explain the clauses in a seller representation agreement to a

potential seller to ensure that they know what their obligations will be along with the
obligations of the brokerage.
Identify the scenarios in which the statements are correct based on the wording of the
clauses in a seller representation agreement.
If anything is added to a seller representation agreement that conflicts with the pre-set wording, the pre-
1
set wording takes precedence as it forms part of the contract between the brokerage and the seller.
A seller representation agreement is faxed to a seller who signs it and faxes it back to the brokerage. The
2 faxed copy is sufficient to place the listing on the local real estate board's listing system, but the seller's
original signature must be obtained on the seller representation agreement before an offer is presented.
A salesperson completes a seller representation agreement and emails it to a seller for signature. The
3 seller signs the agreement and emails it back to the salesperson. The seller is deemed to have retained a
true copy of the original.
If a seller and a salesperson sign the seller representation agreement with electronic signatures, both
4
parties are agreeing to the use of electronic signatures with respect to the agreement.

Introduction to the Signing and Initialling Requirements in a Seller Representation

Agreement
In addition to including relevant provisions when documenting a seller representation agreement, you, as a
salesperson, must understand the signing and initialling requirements that apply to the seller and listing brokerage.
A seller will be asked to sign the listing agreement, which indicates they have read, fully understood, and accept the
terms of the agreement.
The seller will also be asked to sign an acknowledgement indicating they have received a copy of the agreement.
This will ensure that you have complied with your obligation to immediately provide a copy to the party signing.
The following screen explains the specifics of the signing and initialling requirements in a seller representation
agreement.

Signing and Initialling Requirements in a Seller Representation Agreement
You will need to make your best efforts to ensure that each person who signs the agreement also date(s) their own
signature(s) to comply with Subsection 33(2) of the Act.
The following screens will highlight the signing and initialling requirements of a seller representation agreement:
• Signature – brokerage
• Signature – seller
• Spousal consent signature
• Initialling
• Declaration of insurance
• Acknowledgement

Signature – Brokerage
The signature on behalf of the brokerage on a seller representation agreement binds the brokerage to the
agreement. The brokerage agrees to market the property and represent the seller to obtain a valid offer for the
seller(s).
This signature and date must come from a person authorized to bind the brokerage. The salesperson or the broker
working with the seller is usually authorized to sign the agreement on behalf of the brokerage.
Signature – Seller
A seller’s signature on a representation agreement binds them to the terms of the agreement and acknowledges
that they have read, understood, and agreed to those terms. All registered owners are required to sign all the
documents pertaining to listing of a property.
A seller’s signature should be consistent with their signature(s) as commonly written, that is to say, as it is on their
proof of identification and other legal documentation. If the seller is a corporation, an individual authorized to bind

the corporation is required to sign the agreement. The signature is typically followed with the individual’s title and
the corporate seal placed over the signature. In the absence of the seal, the phrase, “I have the authority to bind the
corporation” is included (usually immediately after or below the signature).
In addition to obtaining a signature, the seller will be asked to date their signature and include a telephone number.
When asking an individual to sign the agreement, advise them they are signing under seal. By signing under seal, the
contract between the seller and the brokerage becomes binding. Additional information regarding the importance
of signing under seal was in a previous module, where the essential elements of a contract were detailed.
Spousal Consent Signature
As previously discussed, to comply with the Family Law Act, spousal consent is required when there is a non-titled
spouse and the property being listed for sale is a matrimonial home. Spousal consent only applies when the seller is
legally married and only one spouse is on title. In addition to obtaining a signature, the spouse will be asked to date
their signature and include a telephone number.
In the case of a common-law spouse, no signature is required.
Spousal consent applies to sellers whenever the matrimonial home is being sold or mortgaged. Spousal consent is
not a consideration when a buyer is purchasing a property.
Initialling
Initialling is done on any page where a signature is not obtained. By initialling at the bottom of these pages of the
seller representation agreement, the seller and the brokerage will acknowledge and agree to all the terms on each
page.
Additionally, the seller will provide their initials in the following areas:
• When the duration of the agreement exceeds six months
• To acknowledge the warranty statement indicating they are not a party to another listing agreement
• Whether they agree to another brokerage contacting them after the listing expires or is cancelled

Declaration of insurance
As required under REBBA and detailed earlier, a salesperson, a broker, or a broker of record working with the seller
must inform the seller that they are insured under the RECO insurance program. A signature is obtained on the
seller representation agreement to indicate this declaration of insurance has been done.
Acknowledgement
In this section, the seller acknowledges that they have understood the terms of the agreement and they have
received a copy of the agreement. A non-titled spouse’s acknowledgement is not required, but a brokerage may
have a policy where the signature is also obtained. The date a seller is provided a copy of the agreement is inserted
to assist in compliance with the obligations under the Code to immediately deliver a copy of the listing agreement to
the seller after the agreement is signed.

For example, OREA Form 200 contains a clause in which the brokerage agrees to market the property on behalf of
the seller.
This section of the form also contains a clause where the sellers will sign.
This section of the form also contains a clause regarding spousal consent.

This section of the form also contains areas at the bottom of each page, except the signature page, where the
parties apply their initials.
This section of the form also contains a DECLARATION OF INSURANCE.

This section of the form also contains a clause where the seller acknowledges the terms of the agreement and
having received a copy of the agreement.


Signing and Initialling
Now that you have reviewed the signing and initialling requirements of a seller representation agreement, let us
look at how it is presented in OREA Form 200.
The background shows a thumbnail for page 3 of OREA Form 200: Listing Agreement. This page includes the
following sections:
1. Signature – brokerage: OREA Form 200 contains a clause binding the brokerage to the agreement.
This section of the form binds the brokerage to the agreement.
2. Signature – seller: OREA Form 200 contains a clause binding the seller to the agreement.
This section of the form binds a seller to the terms of the agreement and acknowledges that they have read,
understood, and agreed to those terms.
3. Spousal Consent: OREA Form 200 contains a spousal consent clause.
This section of the form is to ensure spousal consent when there is a non-titled spouse and the property being
listed for sale is a matrimonial home.
4. Initialling: OREA Form 200 contains a space for the initials of the parties on every page, except the signature
page.
This section of the form requires initials by the sellers, which indicates whether the sellers consent to allow
other real estate board members to contact them after expiration or other termination of the agreement to
discuss listing or otherwise marketing the property.
5. Declaration of Insurance - Form 200: Brokers of record, brokers and salespersons must inform sellers and
buyers in writing, as soon as practically possible and prior to entering into an agreement, of whether they are
in compliance with REBBA, 2002 insurance requirements.
Form 200 contains a section whereby the salesperson, broker, or broker of record, by signing, confirms to a
seller that the salesperson, broker, or broker of record is insured under the RECO insurance program.
6. Acknowledgement: OREA Form 200 contains a clause where the seller acknowledges they understand the
terms of the agreement and that they received a copy.
This section of the form is where the seller acknowledges that they have understood the terms of the
agreement and they have received a copy of the agreement.


Example of a Completed Seller Representation Agreement
Now that you have seen the different provisions in OREA Form 200 in partial views, let’s see how all the different
parts come together to make a complete form.
In one of the Decision Points above, you saw how seller Abigail Monroe had requested her salesperson, Jason Sewell
of XYZ Realty Ltd. to be discreet about the sale of her custom-designed home. We have reproduced an example of a
completed seller representation agreement using OREA Form 200 that Jason would have completed for his client,
describing her specific requirements.

Janice is a salesperson with XYZ Realty Ltd. who is meeting with the Patels who are selling
their family home. Both husband and wife are on the title and have provided information
to Janice to assist with documenting all the relevant terms of the agreement. The
agreement has been reviewed and the Patels are ready to sign the agreement.
Which signatures will Janice need to complete the process of documenting a seller
representation agreement with the Patels? Select the option with best wording.
Janice (to Mr. Patel): “Thank you for the information you have provided. In reviewing the terms of the
1 agreement with you, I will also explain the signature requirements that are necessary in order to
process the listing. First, we have the signature on behalf of the brokerage. The broker of record’s
signature is required here.”
Janice (to Mr. Patel): “Thank you for the information you have provided. In reviewing the terms of the
agreement with you, I will also explain the signature requirements that are necessary in order to
2
process the listing. First, we have the signature on behalf of the brokerage. My signature is required
here.”

“The agreement is to be signed by all sellers, so I will need your signature and I will need Mrs. Patel’s
1
signature.”
“The agreement is to be signed by all sellers, so I will need your signature and I will not need Mrs. Patel’s
2
signature.”

1 “Next, I declare that I comply with the insurance requirements by REBBA.”

2 “Next, XYZ Realty Ltd. declares that I comply with the insurance requirements by REBBA.”

1 “We talked about spousal consent and I will need a signature here.”
2 “We talked about spousal consent and I will not need a signature here.”

“Initials are required in several different areas of the agreement. Once that is completed and
1 acknowledged, I can provide you with a copy of the agreement. I will not need your signature to indicate
you have received your copy.”
“Initials are required in several different areas of the agreement. Once that is completed and
2 acknowledged, I can provide you with a copy of the agreement. I will need your signature to indicate you
have received your copy.”

When documenting seller representation agreements, there will be situations where

there are two spouses but only one of them is on title.
For the previous scenario involving the Patels and Janice, assume the property is owned by
Mr. Patel only. How would the signing requirements change based on the situations
identified below?
Because the property is a matrimonial home, both Mr. and Mrs. Patel would sign the agreement as a
1 seller and acknowledge they have received a copy of the agreement. As a non-titled spouse, Mrs. Patel
would also sign the “spousal consent” section to give her consent to the listing.
Because the Patels are married both Mr. and Mrs. Patel are required to sign a listing agreement for any
2 property being listed for sale. This includes a property that is not a matrimonial home. As both Patels
have signed the agreement, both would acknowledge they received copies of the agreement.
Because Mr. Patel is the registered owner, he will sign as the seller on the listing agreement and Mrs.
Patel would provide her consent to the listing by signing the “Spousal Consent” section. Only Mr. Patel is
3
required to sign the acknowledgement for the terms of the agreement and receipt of his copy of the
agreement.

Jason Sewell, a salesperson with XYZ Realty Inc., at 1224 Commerce Place, Anycity, ON (123-123-1212) is meeting
with a first-time seller Martine Bousquet (123-123-1313) on March 12, 20XX to discuss how the brokerage can help
her market her property located at 123 Anystreet, Anycity (Legal description: Lot 30, Plan 92M-2355). Jason explains
all the service options available to a seller and Martine chooses client status.
Martine’s house, a single-family dwelling in a prestigious neighbourhood, will be listed for $1.25 million. She has
agreed to a 120-day listing beginning on March 17th with a 90-day holdover period. She has also agreed to a
remuneration rate of 4% in total on the sale of the property with 2% going to the co-operating brokerage, if
applicable. The 2% payable to the co-operating brokerage is included in the 4% total remuneration. In the event the
agreement expires or is cancelled, Martine has not agreed to allow other real estate board members to contact her
to discuss listing the property.

Jason has completed a seller’s representation agreement with Martine.
• Brokerage is XYZ Realty Inc., 1224 Commerce Place, Anycity, ON. This is the address of listing brokerage.
• Listing Brokerage Telephone Number is 123-123-1212.
• Seller is Martine Bousquet. This is the seller’s full legal name.
• Property for sale is known as 123 Anystreet, City of Anycity, ON. This is the street address of listed property.
• Listing Period is commencing at 12:01 a.m. on the 17 day of March, 20XX and expires at 11:59 p.m. on the 13
day of July, 20XX. These are the details of the listing period. (For illustrative purposes, we are using 20XX, but
in actual practice, we use current year.)
• To offer the Property for sale at a price of 1,250,000. This is the amount of sale price in numeric form.
• To offer the Property for sale at a price of one Million Two Hundred Fifty Thousand. This is the amount of sale
price in written form.
• The Seller hereby represents and warrants that the Seller is not a party to any other listing agreement for the
Property or agreement to pay commission to any other real estate brokerage for the sale of the Property. MB
is entered in this field. These are the seller’s initials to confirm listing agreement.
• Listing Brokerage Commission is four percent of remuneration in text.
• Four % of the sale price of the Property or… Alternate to listing brokerage remuneration is not applicable.
• Co-operating Brokerage Commission is two percent (Amount of remuneration for co-operating brokerage).
• Two (2) % of the sale price of the Property or… Alternate to remuneration for co-operating brokerage is not
applicable.
• Hold Over Period is 90 days.
• Initials of Listing Brokerage are JS. These are the salesperson’s initials to confirm information on page 1.
• Initials of Seller(s) are MB. These are the seller’s initials to confirm information on page 1.
• Initials of Listing Brokerage are JS. These are the salesperson’s initials to confirm information on page 2.
• Initials of Seller(s) are MB. These are the seller’s initials to confirm information on page 2.
• MB is entered in the Does not field. These are the seller’s initials to confirm agreement to not allow other real
estate board members to make contact in the event the agreement expires or is cancelled.
• SCHEDULE(S) is none. This is the confirmation that there are no schedules attached to the listing agreement.

• Authorized to bind the Listing Brokerage is J. Sewell. This is the signature of salesperson representing the
brokerage.
• Date is March 12. Date of signing by salesperson representing the brokerage.
• Name of Person Signing is Jason Sewell. This is the printed name of salesperson representing the brokerage.
• Signature of Seller is M. Bousquet.
• Date is March 12, 20XX. This is the date of seller’s signing.
• Telephone number is 123-123-1313. This is the seller’s telephone number.
• Spousal Consent is not applicable.
• Declaration of Insurance is Jason Sewell. This is the printed name of salesperson representing the brokerage
confirming they are insured by REBBA.
• Declaration of Insurance is J. Sewell. This is the signature of salesperson representing the brokerage
• Acknowledgement – Date is on the 12 day of March, 20XX.
• Acknowledgement – Signature of Seller is Martine Bousquet. This is the seller’s signature confirming they fully
understand the terms of the agreement.
• Acknowledgement – Date is March 12, 20XX.


OREA Form 200: Listing Agreement. ©2022 Ontario Real Estate Association.
Seller Representation Agreement for Martine
Jason has completed the seller representation agreement with Martine.

There are five sections on this page with a summary of the key topics that were discussed in this lesson.
Types of listings How a seller representation agreement is drafted depends on the type of listing that the
seller opts for. There are three types of listings: exclusive, open, and listing service.
In an exclusive listing, the seller gives the sole right to market and sell their property to one
brokerage. Normally, a seller and a brokerage agree to an exclusive listing because the
seller has given specific instructions regarding the showing of the property.
An open listing is one where a seller does not list their property with any brokerage but will
allow any brokerage to show the property to a buyer. The seller will co-operate with the
brokerage and compensate the one that secures them the most satisfactory offer.
A listing service is a member-only database that provides access to properties that are
available for sale or lease.
Terms of, and Important terms of, and parties to, a seller representation agreement, such as the type of
parties to, a seller listing agreement, seller(s) details, brokerage details, address details, commencement and
representation termination dates, listing price, six-month provision, and seller’s warranty, should be
agreement included in every seller representation agreement.
Additional Every seller representation agreement lists the obligations of a seller and a listing
information brokerage and the services that the listing brokerage will provide.
Provisions included in every seller representation agreement include: definitions and
typically included
interpretations; remuneration; representation; finders fee; referral of enquiries;
in a seller
marketing, warranty; indemnification and insurance; Family Law Act; verification of
representation information; use and distribution of information; successors and assigns; conflict or
agreement discrepancy; electronic communication; electronic signatures; and schedule(s).

Signing and The signing and initialling requirements in a typical seller representation agreement are as
initialling follows: signatures from the sellers and the listing brokerage; signatures for spousal
consent; a declaration of insurance by the salesperson; the seller’s initials on each page of
requirements for a
the agreement; and an acknowledgement by the seller that they understand the terms and
seller
have received a true copy of the agreement.
representation
agreement
Documenting The amount of remuneration owed is negotiable between the seller and the brokerage and
remuneration is based on the services being provided by the brokerage under the agreement. REBBA
identifies the allowable ways remuneration can be calculated.
in a seller
The holdover provision in a seller representation agreement protects the rights of the
representation
brokerage, wherein if a buyer is introduced to a property during the listing period, and they
agreement purchase the property after the expiry of the listing during an identified time, the seller will
owe remuneration to the brokerage.

Lesson 3: The Buyer Representation Agreement
This lesson introduces a buyer representation agreement used to document a client relationship with a buyer. The
lesson details the key components of this type of agreement, including the information typically included and the
signing or initialling requirements of both the buyer and the brokerage.

This lesson introduces the buyer representation agreement and the key components required when documenting
that relationship with a buyer: namely, the terms of and parties to the agreement, the various provisions, and the
signing and initialling requirements. The lesson also includes exercises that will help you apply your learning and
complete a buyer representation agreement.
This lesson will help prepare you to explain the buyer representation agreement. You should arrange to discuss and
sign the buyer representation agreement with a potential buyer as early as is possible. Both you and the buyer will
benefit if you explain the advantages of working with your brokerage, review the agreement with them line-by-line,
and answer any questions they may have so that each party to the agreement has a clear understanding of the
services that will be provided, and their respective duties and obligations.
That way, both parties can be aware of their responsibilities under the agreement throughout the duration of the
relationship. Both parties will have a written copy of the agreement to prevent any confusion or misunderstandings
in future. As a salesperson, you will have the obligation to be fair, honest, and act in the best interests of the client.

• Describe the type of information required to identify the terms of, and parties to, a buyer representation
agreement
• Explain the additional information typically included in a buyer representation agreement
• Explain the signing and initialling requirements of a buyer representation agreement
• Complete the information required to identify the terms of, and parties to, a buyer representation agreement
• Complete the additional information typically required in a buyer representation agreement
• Complete the signing and initialling requirements of a buyer representation agreement

The Buyer Representation Agreement: Overview
A buyer representation agreement is used by a brokerage to document a client relationship with a buyer. It grants
an authority to the brokerage to act on the buyer’s behalf in locating a suitable property for purchase, identifies any
limitations to the authority granted, and states how long the agreement with the brokerage will be in effect. This
agreement also:
• Establishes the services the brokerage will provide to the buyer
• Sets out duties and responsibilities of both the buyer and the brokerage
• Details remuneration arrangements and buyer responsibilities should remuneration not be paid by the seller
• Provides a general or very specific description of the area where the buyer wishes to purchase and the desired
property type
An example of a form that may be used as a buyer representation agreement is shown in its entirety at the end of
this lesson.

Exclusive Buyer Representation Agreement
An exclusive buyer representation agreement, similar to the seller representation agreement, may be signed by a
buyer client who will grant your brokerage the exclusive authority and sole right to represent them in their search
for a property that meets their stated criteria. An exclusive representation agreement requires that the buyer give
express, written authority to the brokerage. The agreement will state in direct and well-defined limits the duties that
the brokerage is empowered to perform on behalf of the buyer client. A buyer representation agreement can be
verbal, but you have an obligation to reduce it to writing, sign it on behalf of your brokerage, and give it to the buyer
for their signature, in accordance with Section 14 of the Code of Ethics.

Introduction to a Buyer Representation Agreement
As a salesperson, you should be well-versed with all clauses and components of any agreement you use in the
course of a trade. Due to the nature of a representation agreement, there are some similarities as well as
differences between a seller and a buyer representation agreement.
Here are some of the provisions in the buyer representation agreement that are similar to the seller representation
agreement:
• Term of the agreement
• Representation
• Finders Fee
• Conflict or Discrepancy
• Electronic Communication
• Electronic Signatures
• Signing and Initialling

A key difference between the two agreements is that, unlike the seller agreement, the buyer representation
agreement is an authority both for the purchase of property and the leasing of property. When the terms and
provisions included in the agreement are compared, there is some alignment, but many terms and provisions are
different. Below are some of the provisions in the buyer representation agreement that are distinct from the seller
representation agreement:
• Property type
• Geographic location
• Indemnification
• Consumer Reports
Each of the bulleted points above will be discussed in detail in the following screens.

Similarities Between a Seller and a Buyer Representation Agreement
Brokerage details, commencement and expiry dates will need to be recorded consistently in both types of
representation agreements.
The following screens will highlight the additional information in a buyer representative agreement:

Brokerage Details
The legal name of the brokerage, the complete address of the brokerage, and the telephone number are identified.
A salesperson’s name is never entered.
Term of the Agreement

The effective date and expiry date of the agreement are identified. If the agreement exceeds six months, the
brokerage must obtain the buyer’s initials.

For example, OREA Form 300 contains a statement identifying the brokerage as a party to the agreement where
details of the brokerage can be found.
This section of the form also contains a clause that sets out the term of the agreement, including the date and
time of the commencement and expiration.
From OREA Form 300: Buyer Representation Agreement. ©2022 Ontario Real Estate Association.


Similarities Between Seller and Buyer Representation Agreements
Now that you have reviewed information that is similar to both the seller and the buyer representation agreements,
let us look at how these elements are presented in OREA Form 300.
1. Brokerage details: OREA Form 300 contains an area where the brokerage is identified.
This section of the form is where the legal name of the brokerage, the complete address of the brokerage and
the telephone number are identified.
2. Term of the Agreement: OREA Form 300 contains a clause that sets out the effective dates and times of the
agreement.
This section of the form is where the effective date and expiry date of the agreement are identified.

Similarities Between Seller and Buyer Representation Agreements in Additional

Information
A buyer representation agreement should include additional provisions that define the brokerage’s authority and to
what the buyer consents. These provisions also set out the services the brokerage provides and the obligations of
the buyer.
A few of the provisions in a buyer representation agreement are similar to those that would be found in a seller
representation agreement. They are as follows:
• Representation
• Finders Fee
• Conflict or Discrepancy
• Electronic Communication
• Electronic Signatures

The agreement establishes and explains the terms used in the agreement including seller, buyer, purchase, related
corporations, change in number, and gender, etc.

For example, OREA Form 300 contains a clause called DEFINITIONS AND INTERPRETATIONS.

Representation
This section confirms that the brokerage and the salesperson have explained the different types of agency and
other relationships that may occur in a real estate transaction and includes single representation, multiple
representation, and customer service.

For example, OREA Form 300 contains a clause called REPRESENTATION.

Finders Fee
This section provides consent in the event the brokerage or salesperson receives a finder’s fee or other
remuneration as part of a transaction. This fee may come from a mortgage company or broker. It should be noted
that specific consent will be required if a referral fee actually materializes. The buyer acknowledges that the
brokerage may receive a finder’s fee in addition to the remuneration described in the agreement.

For example, OREA Form 300 contains a clause called FINDERS FEE.

The buyer consents to the collection, use, and disclosure of personal information by the brokerage to assist with the
facilitation of the transaction. It also assures the buyer that this information will not be distributed to third parties
such as heating oil companies, moving companies, etc.

For example, OREA Form 300 contains a clause called USE AND DISTRIBUTION OF INFORMATION.

Additional Information in Representation Agreements
If something is added to the agreement, then the provision(s) that were added will override the text or pre-set
provisions in the form. As a salesperson, you must observe caution when adding information or other requirements
to the document to ensure that important elements are not rendered inapplicable.
Electronic communication permits any documents or notices to be transmitted electronically. All documents and
signatures are deemed originals.
This clause provides consent if the parties use electronic signatures with respect to the buyer representation
agreement. It is important to remember that consent only applies to this agreement. If electronic signatures are to
be used in other agreements like an agreement of purchase and sale, then specific consent must be obtained from
the parties for the use of electronic signatures in that document as well.

For example, OREA Form 300 contains a clause called CONFLICT OR DISCREPANCY.
This section of the form also contains a clause called ELECTRONIC COMMUNICATION.
This section of the form also contains a clause called ELECTRONIC SIGNATURES.


Similarities Between the Seller and the Buyer Representation Agreements in
Additional Information
Now that you have reviewed the similarities in the additional information between the buyer representation
agreement and the seller representation agreement, let’s look at how these elements come together in an
agreement. For example, OREA Form 300.
The background shows thumbnails for page 1 and page 3 of OREA Form 300: Buyer Representation Agreement.
Page 1 includes the following sections:
1. Definitions and interpretations: OREA Form 300 contains a section setting out definitions and
interpretations of terms used in the agreement.
This section of the form establishes and explains the terms used in the agreement.
2. Representation: OREA Form 300 contains a clause that addresses different types of relationships.
This section of the form confirms that the brokerage and you, as the salesperson, have explained the different
types of agency and other relationships that may occur in a real estate transaction.
1. Finders Fee: OREA Form 300 contains a clause that addresses the payment of finder’s fees.
This section of the form is where the buyer consents to a finder’s fee/referral incentive being received and
retained by the brokerage.
2. Use and Distribution of Information: OREA Form 300 contains a clause that addresses the use and
distribution of information.
This section of the form is where the buyer consents to the collection, use, and disclosure of personal
information by the brokerage to assist with the facilitation of the transaction.
3. Conflict or Discrepancy: OREA Form 300 contains a clause that addresses how an addition to a term of a
contract impacts pre-set terms in an agreement.

This section of the form informs the buyer that if something is added to the agreement, then the provision(s)
that were added will override the text or pre-set provisions in the form.
4. Electronic Communication: OREA Form 300 contains a clause that explains that electronic communications
are permitted.
This section of the form permits any documents or notices to be transmitted electronically.
5. Electronic Signatures: OREA Form 300 contains a clause that explains that electronic signatures may be used.
This section contains a clause that provides consent for the parties use electronic signatures with respect to
the agreement.

Similarities and Differences in Terms of, and Parties to, the Buyer Representation
Agreement
While there are several similarities between a seller representation agreement and a buyer representation
agreement, there are also some differences between the two. The major difference is that the seller representation
agreement gives the brokerage the authority to sell the subject property. However, the buyer representation
agreement must describe the general details of a property that will be acceptable to a buyer in a specific geographic
area. These items are covered in both agreements. The remainder of the documents are generally quite similar.
Differences include provisions related to indemnification and the consumer reports included as part of the
additional information in the agreement.
The following screens will highlight the type of information required to identify the terms of, and parties to, a buyer
representation agreement:
• Buyer’s details
• Property type
• Buyer representation/warranty

Buyer(s) Details
The full legal name(s) of the buyer(s) and their complete address(es), including municipality details, would be
recorded in a section documenting buyer details. You must confirm the legal name(s) that will appear on this or any
agreement before signing.
Complete legal names and the buyer’s address are obtained to ensure the buyer is not mistaken for another buyer
with the same name under a representation agreement with another brokerage.

For example, OREA Form 300 contains a line where the legal name of the buyer(s) will be entered. They are then
referred to as “Buyer” throughout the agreement.

Property Type
The buyer will need to provide detail about the type of property they wish to purchase in the property type section
of an agreement. A description will be required to frame the salesperson’s activities in locating a property that
would meet the buyer’s needs. The buyer’s obligation and commitment to the brokerage depends, in part, on the
description of the desired property.
An agreement describing the property type as “a home for four” would cover a lot of properties and might lead to
the salesperson not being able to identify options the buyer could consider. As a salesperson, you should
encourage your buyer to be as specific and detailed as possible in describing the type of property they are
interested in purchasing so you have complete clarity. When completing a buyer representation agreement, you
need to generally describe the property but remain sufficiently broad to permit some flexibility. Saying a “single-
family residential property” is more useful.

Example 1:
A couple, while meeting with a salesperson, describes their family’s needs; namely a detached home with four
bedrooms, a finished basement, and a double-car garage with convenient access to public transit. The salesperson,
while completing this section of the buyer representation agreement, inserts “single family residential, detached
home with three to five bedrooms and a garage.” This generally describes the property that the family is looking for
but is sufficiently broad as to permit some flexibility.
Example 2:
A salesperson is completing a buyer representation agreement with a real estate investor who is looking for a small,
multi-unit, residential building. The salesperson inserts the following in this section: multi-family, residential
property, two to four units.
In some cases, it is appropriate to complete the agreement for a specific address, i.e. 123 Pine St., Anycity,
Anyregion. Sometimes a buyer would be willing to work exclusively with one brokerage for a specific property but
may want to keep their options open to buy privately or to work with other brokerages.

For example, OREA Form 300 contains a line where the property type (based on the use of the property) will be
entered.

Geographic Location
A buyer representation agreement sets out the geographic location the brokerage is authorized to search on behalf
of the buyer. As a salesperson, you should ensure that the geographic location is specific and clear to ensure there
is no misunderstanding of this term.
The area mentioned should be reasonable and the brokerage should be able to provide their services to the buyer
in the area mentioned. For example, a geographic area of Northern Ontario would not be reasonable, and any
salesperson would not have the experience or expertise to advise buyers on such a vast area.
However, when defining the geographical scope of the buyer representation agreement, it only applies to properties
defined in the “property type” section. For example, a salesperson works with a family who is relocating to Waterloo
Region from Winnipeg. They sign a buyer representation agreement for a single-family residential home in the cities
of Kitchener and Waterloo, which they ultimately purchase. However, at the same time they purchase an industrial
building for their business through a commercial brokerage. As this purchase is separate and distinct from the
residential purchase, they do not have any obligations to the salesperson with respect to the industrial purchase
and vice versa with respect to the residential purchase.
The buyer warrants that they will not work with another brokerage to help them find a property in the same
geographic location. To avoid any misunderstandings, the geographic location should be detailed enough that the
authority is understood, but general enough that the brokerage is not restricted to one neighbourhood.
As much as possible, encourage and aid the buyer to define the geographic location by using municipal boundaries
as these are clearly defined. In a larger centre, it might be appropriate to describe the geographic location by
identifying the boundaries in a city or region. In other areas, it might be appropriate to insert the name of the city or
region in the description.

Example:
Instead of documenting the geographic location as a general area such as “Anycity, Anyregion”, describe the
geographic location using “Anycity, west of route 8 and south of route 27.”

For example, OREA Form 300 contains a line where the geographic location of the property being considered will be
entered.

Buyer Representation/Warranty
Since a buyer representation agreement is an exclusive agreement with the brokerage, the buyer is providing a
warranty that they are not a party to a buyer representation agreement with any other brokerage for the purchase
or lease of the same property type and within the same geographic area. If the buyer has signed a representation
agreement with more than one brokerage under the same terms, the buyer could be obligated to pay
remuneration to more than one brokerage for the purchase.
As the buyer representation agreement provides the authority to the brokerage specific to the property type and
geographic location, a buyer may be a party to more than one buyer representation agreement with different
brokerages at the same time. For example, a buyer could have one agreement for a residential purchase and at the
same time, have an agreement with a different brokerage to locate commercial space to purchase or lease. A buyer
could also have two agreements at the same time if the property type is the same, but the geographic location is
different.
Example:
A young couple has received an inheritance and has decided to purchase both a new home in the city, and a
summer cottage located in a rural township several hundred kilometres away. The buyers are searching for two
different property types in different geographic locations, so the searches do not conflict with each other.
In this instance, the buyers could have a representation agreement signed with one brokerage for the purchase of a
home in the city and a second representation agreement signed for the purchase of a cottage with another
brokerage. Having an accurate and specific description of the property type and geographic location in the
agreement is important to ensure the buyer understands their obligations to the brokerage.

For example, OREA Form 300 contains a provision where the buyer warrants that they have not entered a
representation agreement with any other brokerage.


Terms of, and Parties to, the Buyer Agreement
Now that you have reviewed certain items in the buyer representation agreement that are different from the seller
representation agreement, let us look at how these elements come together in an agreement, for example OREA
Form 300.
1. Buyer’s details: OREA Form 300 contains a line where the legal name of the buyer(s) will be entered. They are
then referred to as “Buyer” throughout the agreement.
This section of the form contains the full legal names and address of the buyer(s).
2. Property Type: OREA Form 300 contains a line where the property type (based on the use of the property will
be put to) will be entered.
This section of the form is where the buyer’s details about the type of property they wish to purchase is
recorded.
3. Geographical Location: OREA Form 300 contains a line where the geographic location of the property being
considered will be entered.
This section of the form is to record the geographic location that the brokerage is authorized to search on
behalf of the buyer.
4. Buyer’s Warranty: OREA Form 300 contains a provision where the buyer warrants that they have not entered
into a representation agreement with another brokerage.
This section of the form is where the buyer provides warranty that they are not a party to a buyer
representation agreement with any other brokerage for the purchase or lease of the same property type and
within the same geographical area.

Jason, the salesperson from XYZ Realty Ltd., is representing Randal and Sara Smith and is
preparing a buyer representation agreement for them. Randal and Sara are looking to
buy a single-family residential home with four bedrooms in Anycity, Anyregion. It may
take 10 to 12 weeks to find a home to purchase in this area.
Select the best wording for a buyer representation agreement based on their conversation.
Jason: “Mr. and Mrs. Smith, let’s get started. Given that I’m your salesperson with XYZ Realty Ltd., I’m
1
listing Jason Sewell, XYZ Realty Ltd. as the brokerage on this agreement.”
Jason: “Mr. and Mrs. Smith, let’s get started. Given that I’m your salesperson with XYZ Realty Ltd., I’m
2
listing XYZ Realty Ltd. as the brokerage on this agreement.”

Jason: “I’m going to list your names as Randal Smith in the Buyers section, given that you both want to
1
buy the property together.”
Jason: “I’m going to list your names as Randal Smith and Sara Smith in the Buyers section, given that
2
you both want to buy the property together.”

Jason: “We discussed that finding your ideal home will take around 10 to 12 weeks based on current
1
market conditions. Therefore, initials are not needed to extend this agreement.”
Jason: “We discussed that finding your ideal home will take around 10 to 12 weeks based on current
2
market conditions. Therefore, initials are needed to extend this agreement.”

Jason: “Speaking of the type of home you are looking at, I will enter single family residential
1
home in the respective field. How does all this sound?”
Jason: “Speaking of the type of home you are looking at, I will enter residential structure in the
2
respective field. How does all this sound?”

Manikaran Singh wants to buy a detached, three-bedroom home in Anytownship,

Anyregion and is prepared to sign a buyer representation agreement with ABC Real
Estate Inc. Before signing, his salesperson asks him if he has signed a buyer
representation agreement with any other brokerage. Manikaran replies that he has a
buyer representation agreement with another brokerage, UVW Realty Inc., for a two-
bedroom condominium apartment in Northgate, Anyregion as an investment property
that his daughter will live in when going to college.
If Manikaran buys a detached, three-bedroom home in Anytownship through ABC Realty Inc.,
will he be liable for remuneration under the buyer representation agreement he has with
UVW Realty Inc.?
Yes. As Manikaran signed a buyer representation agreement with UVW Realty Inc. first, he will be bound
1
to pay them remuneration for any property he purchases.
No. By signing the second buyer representation agreement with ABC Real Estate Inc., it nullifies the
2
agreement with UVW Realty Inc.
No. The agreement with UVW Realty Inc. is for a two-bedroom condominium apartment in Northgate
3
and that is not what Manikaran is purchasing.
Yes. Three-bedroom detached homes and two-bedroom condominium apartments are both residential
4
properties and it doesn’t matter where they are located.

Similarities and Differences in Additional Information in a Buyer Representation

Agreement
While some elements in the additional information in the buyer representation agreement are similar to that found
in a seller representation agreement, certain other provisions are different.
Similarities with the seller representation agreement include the provision of referral of properties and schedule(s).
However, the indemnification clause is more significant in the seller representation agreement compared to the
buyer representation agreement. Even though the indemnification clause in the buyer representation agreement
states that the buyer must investigate the property themselves and that the salesperson cannot be held responsible
for any defects found, the salesperson and brokerage are still obligated to perform their due diligence and offer
competent service to the buyer.
The other point of difference between the two representation agreements is the consumer reports provision in the
buyer representation agreement, whereby the buyer is notified that a consumer report consisting of the buyer’s
personal and credit information may be used and referred to during the transaction.

The marketing clause is also a point of difference as it is not contained in the buyer representation agreement. The
clause is part of the seller representation agreement as the salesperson and the brokerage are authorized by the
seller to market their property.
The following screens will highlight the additional information in a buyer representation agreement:
• Referral of properties
• Indemnification
• Consumer reports
• Schedule(s)

Referral of Properties
A buyer representation agreement contains a provision that requires the buyer to inform the brokerage of any
property they become aware of that meets the criteria as identified in the agreement.
If a buyer locates a property directly during the course of their buyer representation agreement, they are obligated
to inform the brokerage about the property. The brokerage would then make the necessary arrangements to show
the property to the buyer. Failure to provide this information to the brokerage could result in the buyer being
obligated to pay remuneration to the brokerage if they were to purchase the property.
Example:
While at work, a buyer discusses with her colleagues her plans to buy a home. Her co-worker informs her that his
sister is selling her home on Oak Meadow Street and it has many of the features the buyer is looking for. During the
buyer’s lunch break, she calls her salesperson and tells him about the said property, suggesting that he make
arrangements to show her through the home that evening. This satisfies the buyer’s obligation to refer properties to
the brokerage/salesperson.

For example, OREA Form 300 contains a provision called REFERRAL OF PROPERTIES.

Indemnification
A provision for indemnification in a buyer representation agreement is the buyer’s acknowledgement that the
brokerage and its representatives are not responsible for any defects found in the properties the buyer views.
Although the brokerage and its representatives are trained in dealing in real estate, they are not qualified to
determine the physical condition of the properties or land.
The buyer also acknowledges that they have been advised to make their own enquiries about the property as the
information provided by the seller or the listing brokerage may not have been verified. You should not advise a
buyer about the physical condition of a property and, if asked, should refer them to a professional.

For example, OREA Form 300 contains a provision called INDEMNIFICATION.

Consumer Reports
By adding this provision to a buyer representation agreement, the buyer is notified that a consumer report,
consisting of the buyer’s personal and credit information, may be used and referred to during the transaction. This
provision is included to ensure compliance with the requirements set out in the Consumer Reporting Act, which
regulates consumer reporting agencies who furnish consumer reports. A consumer report is a written, oral, or other
communication by a consumer reporting agency of credit information, personal information, or both. In a real
estate transaction, a report could be requested in connection with the extension of credit, such as obtaining a
mortgage, and entering into or renewing a tenancy agreement.
The provision would apply if the buyer is applying for a mortgage with a lender, or the seller agrees to provide
financing for the buyer’s purchase. As the buyer representation agreement is also used for the leasing of a property,
the provision would apply to any tenancy agreement.

For example, OREA Form 300 contains a provision called CONSUMER REPORTS.

Schedule(s)
While the schedules themselves may differ, the procedures to attach schedules to a buyer representation
agreement would be the same as those used in attaching schedules to a seller representation agreement.
Schedules to a buyer representation agreement could include:

• A list of properties that may be excluded from the buyer representation agreement; for example, the buyer
may have viewed a property for private sale or a new home construction site by a builder
• A pre-approval letter from a mortgage provider to assist in the brokerage assessing the buyer’s qualification

For example, OREA Form 300 contains a reference to SCHEDULES that form part of the agreement.


Additional Information in the Buyer Representation Agreement
Now that you have reviewed the additional information in the buyer representation agreement, let us look at how
the various elements come together in an agreement, for example in OREA Form 300.
Referral of property: OREA Form 300 contains a provision where the buyer agrees to inform the brokerage of any
properties they become aware of that meets their criteria.
This section is where the buyer agrees to inform the brokerage of any properties they become aware of that meets
the criteria as identified in the agreement.

1. Indemnification: OREA Form 300 contains a provision where the buyer states that the brokerage is not
responsible for any defects in the properties the brokerage identifies for the buyer.
This section informs the buyer that the brokerage and its representatives are not responsible for any defects
found in the properties the buyer views.
2. Consumer reports: OREA Form 300 contains a provision where the buyer acknowledges that a consumer
report, consisting of personal and credit information may be used during the process.
This section notifies the buyer that a consumer report, consisting of their personal and credit information, may
be used and referred to during the transaction.
3. Schedule(s): OREA Form 300 contains a line that refers to schedules that form part of the agreement.
This section indicates any attached schedules.

The following screens will highlight how remuneration may be paid to the brokerage by the buyer, if applicable,
and how the holdover period applies. Information that must be included to establish the remuneration include:
• Brokerage signature
• Buyer’s signature and initials where required

Remuneration
A brokerage will include a remuneration provision in the buyer representation agreement to clarify the
remuneration obligations of a buyer. The brokerage is entitled to collect and retain a commission if the buyer
purchases a property of the general description, which includes the property type and geographic location, as
indicated in the agreement.
A buyer’s obligations to pay a remuneration, if any, must be clearly explained and understood. The buyer’s
obligations include:
• The buyer agrees that the brokerage is entitled to be paid remuneration – the agreed upon amount of
remuneration is then specified in the agreement.
• The brokerage will advise the buyer of the amount of remuneration being paid by the seller or the listing
brokerage at the earliest practical opportunity.
• The buyer agrees to pay any deficiency between the agreed amount the brokerage is entitled to and the
amount paid by the seller or the listing brokerage. This brokerage will inform the buyer of any such deficiency
at earliest practical opportunity and prior to submitting an offer.
• If no remuneration is being paid by the seller or the listing brokerage, the buyer agrees to pay the full amount
of remuneration indicated if the buyer wishes to proceed with the purchase after being informed of obligation
to pay remuneration.
• If the brokerage receives more than what is identified in the agreement, the brokerage is entitled to retain
those additional funds. The brokerage will inform the buyer of such circumstances.

Example:
If the remuneration rate specified in the buyer agreement is 2.5% and the seller is offering 1%, the buyer would be
responsible for paying the remaining remuneration rate of 1.5% to the buyer’s brokerage.
The agreement contains a clause specifying that the agreement also applies for the leasing of a property. If the
buyer leases a property of the general description specified in the agreement, the buyer representation agreement
remains in effect for the purchase of the leased property or any property of the general description indicated in the
agreement. It is also mentioned that the leasing of a property does not terminate the agreement for the purchase of
a property.
Holdover is a significant component of the remuneration obligations of a buyer and will be discussed in more detail
in the next screen.

For example, OREA Form 300 contains a provision called COMMISSION.

Holdover
As with the seller representation agreement, a holdover provision is also part of the remuneration provisions in a
buyer representation agreement. A holdover provision obligates the buyer to use the brokerage for a purchase after
the agreement expires if the buyer purchases a property that was shown by the brokerage when the agreement
was in effect. Failure to do so could result in the buyer owing remuneration to the brokerage. A holdover period is
typically 60 to 90 days, but is set by the brokerage and may be negotiable between the buyer and the brokerage.
Should the buyer sign a subsequent representation agreement with another brokerage during the holdover period,
any obligation to pay remuneration to the original brokerage is reduced by the amount paid under the new
Example 1:
On the expiry of the buyer representation agreement and during the holdover period specified in the agreement, a
buyer puts an offer on a property that was introduced to him by the brokerage prior to the expiration of the buyer
representation agreement. The buyer purchases the property without entering into another buyer representation
agreement with another brokerage. In this case, the buyer owes the agreed-upon remuneration to their brokerage.

Example 2:
The buyer’s agreement with a brokerage expires and, during the holdover period, he signs an agreement with
another brokerage. The buyer purchases a property through the new brokerage; however, the property had been
introduced to the buyer by the previous brokerage. As the purchase occurred during the holdover period, the buyer
is obligated to pay remuneration to the previous brokerage. However, the buyer’s obligation for remuneration is
reduced by the amount paid under the new representation agreement, if any.

For example, OREA Form 300 contains information about the Holdover Period within the COMMISSION clause.


Documenting Remuneration in the Buyer Representation Agreement
Now that you have reviewed how remuneration and the holdover provision is dealt with in the buyer representation
agreement, let us look at how it is presented in an agreement such as OREA Form 300.
Commission: OREA Form 300 contains a clause explaining commission.
This section of the form clarifies the remuneration obligations of a buyer.
Page 2 includes the following section:
Holdover Provision: OREA Form 300 contains the information about the Holdover Period within the Commission
clause.
This section of the form obligates the buyer to pay remuneration to the brokerage if the purchase happens within a
specified period after expiry of agreement.

Based on the remuneration and holdover provisions agreed to between a brokerage

and a buyer in a buyer representation agreement, the remuneration obligations of the
buyer may change in different scenarios.
Identify the scenarios in which the buyer would owe remuneration to the brokerage.
The buyer has agreed to pay the brokerage remuneration on the sale price, with a 60-day holdover
1 period. The transaction is firm and binding but does not complete as the buyer’s lender refuses to
advance mortgage funds due to the buyer’s revised credit score.
The buyer has agreed to an $8,000 remuneration with the brokerage. They buy a property for $500,000
2
and the brokerage is paid a remuneration rate of 2% of the sale price from the listing brokerage.
The buyer agrees to a 90-day agreement, a remuneration rate of 2.5% of the sale price, and a 60-day
holdover period. The buyer is shown several properties but does not make a purchase. Nine weeks after
3 the expiration of the agreement, the buyer signs a representation agreement with a different brokerage
and buys a property that was also shown to them by the first brokerage. The buyer pays a remuneration
rate of 2% of the sale price to the new brokerage.
A buyer signs a 60-day agreement at remuneration rate of 2.5%, and a 90-day holdover period. The
buyer is shown several properties but does not make a purchase. Six weeks after expiry, the buyer
4
signs a buyer representation agreement with a different brokerage and buys a property that was
shown to them by the first brokerage. The buyer pays a remuneration rate of 2% to the new brokerage.

When viewing a property, a buyer asks the salesperson to provide advice about the
plumbing. The salesperson recommends this should be checked by a professional before
the property is purchased.
If the property is purchased and after the sale is completed, the buyer discovers
problems with the plumbing, they cannot hold the brokerage responsible.
Which clause outlines the brokerage service in this scenario?
1 Indemnification
2 Referral of properties

A buyer, before finalizing the agreement of purchase and sale on a property, meets with
a mortgage broker to arrange financing. As part of the financing approval process, the
buyer’s credit history is referenced.
Which clause outlines the brokerage service in this scenario?
1 Schedules
2 Consumer reports

Signing and Initialling
The signing and initialling requirements in a buyer representation agreement are similar to those in a seller
representation agreement for these sections. REBBA does not require a buyer to sign a buyer representation
agreement; however, a brokerage must sign and present this to the buyer for signing at the earliest opportunity,
and before an offer is made. A brokerage may have a policy regarding buyer representation agreements.
The following screens will highlight the signing and initialling requirements of a buyer representation agreement.
These include:
• Buyer’s signature and initials where required
• Acknowledgement

Brokerage Signature
Salesperson’s signature to bind the brokerage to the agreement.
Buyer’s Signature and Initials
Obtain signature of the buyer, date of signing, and telephone number. The requirements for a buyer’s initials on an
agreement are similar to those of the sellers on a listing agreement. By initialling each page and signing the
agreement, the buyer is acknowledging that they have read and understood the terms of the buyer representation
agreement. The buyer must be advised that they are signing under seal and what that means. The buyer must date
their signature and insert their telephone number to facilitate future contact.

For example, OREA Form 300 contains a space at the end of each page where the buyer and brokerage are to put
their initials.

Declaration of Insurance
It is the salesperson’s declaration that they have insurance as required under REBBA. The Declaration of Insurance
when signed by the salesperson confirms that they are enrolled in the RECO Insurance Program as required by the
Real Estate and Business Brokers Act, 2002.

For example, OREA Form 300 contains a section towards the end of the form where the salesperson/broker/broker
of record enter their names to declare they are insured as required by REBBA.

Acknowledgement
Buyer’s acknowledgement of receipt of a copy of the agreement.

For example, OREA Form 300 contains a section at the end where the buyer acknowledges that the Buyer(s)
understand the terms of the agreement and have received a copy on the specific day and date.


Signing and Initialling in Buyer Representation Agreement
Now that you have reviewed the various signing and initialling requirements in the buyer representation agreement,
let us look at how it is presented in an agreement such as OREA Form 300.
1. Brokerage Initials: OREA Form 300 contains a space at the end of Page 1 and 2 where the brokerage’s
salesperson needs to put their initials.
These sections of the form are where you, as a salesperson will place your initials to bind the brokerage to
the agreement.
2. Buyer’s Signature and Initials: OREA Form 300 contains a space at the end of the tabs where the buyer
needs to put their initials.
This section of the form is where the buyer signs and initials to acknowledge that they have read and
understood the terms of the buyer representation agreement.
3. Declaration of Insurance: OREA Form 300 contains a section towards the end of the form where the
salesperson/broker/broker of record enter their names to declare they are insured as required by REBBA.
This section of the form is where you, as a salesperson will declare that you have insurance as required
under REBBA.
4. Acknowledgement: OREA Form 300 contains a section at the end where the buyer acknowledges that the
Buyer(s) understand the terms of the agreement and have received a copy on the specific day and date.
This section of the form is where the buyer acknowledges that they have received a copy of the agreement.



Example of a Completed Buyer Representation Agreement
Now that you have seen the different provisions in OREA Form 300 in partial views, let us see how all the different
parts come together to make a complete form. In one of the Decision Points above, you saw that salesperson Jason
Sewell of XYZ Realty Ltd. is helping buyers Randal and Sara Smith to purchase a single-family residential home with
four bedrooms in Anycity, Anyregion. We have reproduced an example of a completed buyer representation
agreement using OREA Form 300 that Jason would have filled out for his client, taking into consideration the
features that the Smiths want in their new home.

A Salesperson, Rita, from ABC Real Estate Inc. has reviewed all the terms of the buyer
representation agreement with Talia and Tara Jones, who are looking for a new home.
They want to buy the home together and have worked with Rita to review and complete
all the relevant terms of the agreement. Rita is now going to obtain their signatures on
the agreement and provide copies of the agreement.
Which signatures will Rita need to collect to complete the process of creating a buyer
representation agreement with the Joneses? Select the option with the best wording.
Rita: “Thank you for your patience while we reviewed all the terms of the agreement. I will need to obtain
1 a few signatures from you before we will be finished today. First, we have the signature for the
brokerage. The broker of record’s signature is required here.”
Rita: “Thank you for your patience while we reviewed all the terms of the agreement. I will need to obtain
2 a few signatures from you before we will be finished today. First, we have the signature for the
brokerage. My signature is required here.”

1 “For you, I will need both Talia and Tara’s signature.”

2 “For you, I will not need both Talia and Tara’s signature.”

1 “Next, I declare that the required insurance under REBBA is in place.”

2 “Next, ABC Real Estate Inc. declares that the required insurance under REBBA is in place.”

“Initials are also required in several areas. Once this has been completed, I will provide you both with
1
copies of the agreement. I will need signatures to acknowledge you received your copies.”
“Initials are also required in several areas. Once this has been completed, I will provide you both with
2
copies of the agreement. I will not need signatures to acknowledge you received your copies.”

Jason Sewell, a salesperson with XYZ Realty Inc., at 1224 Commerce Place, Anycity, ON (123-123-1212) is meeting
with Elizabeth and Rob Park (123 Pine St, Anycity, ON, K0K1W0 - 123-123-1234) who are beginning to search for a
new home on May 12, 20XX. The Parks want to purchase a single-family residence with two bedrooms, two baths,
and a garage in the Anycity area. Jason has explained the services that the brokerage offers, and the Parks have
chosen client status.
The Parks, who are working exclusively with XYZ Realty Inc., have agreed to a 60-day agreement beginning on May
15, 20XX with a 30-day holdover provision. They have also agreed to a remuneration rate of 2.5% on the purchase
of a property.

Jason has completed a buyer representation agreement with the Parks.
• Brokerage is XYZ Realty Inc.

• Address is 1224 Commerce Place, Anycity, ON. This is the address of the brokerage.
• Brokerage Telephone Number is 123-123-1212.
• Buyer is Elizabeth Park and Rob Park. These are the full legal names of the buyers.
• Address is 123 Pine Street. This is the buyers’ home address.
• Municipality is City of Anycity. The buyers live in this municipality.
• Postal Code is K0K1W0. This is the postal code for the buyers’ home address.
• Commencing at 12:01 a.m. on the 15 day of May, 20XX. This is the commencing date of the agreement.
• Expiring at 11:59 p.m. on the 13 day of July, 20XX .This is expiry date of the agreement.
• Property Type is Single family residential. This is the description of property type.
• Geographic Location is City of Anycity.
• Buyer’s Initials are EPRP. These are to confirm they are not a party to a buyer representation agreement with
any other registered real estate brokerage for the purchase or lease of a similar property.
• Initials of Brokerage are JS. These are the salesperson’s initials to confirm information on page 1.
• Initials of Buyer(s) are EPRP. These are the buyers’ initials to confirm information on page 1.
• The Brokerage is entitled to be paid a commission of two and one half (2.5). This is the amount of
remuneration to be paid to the brokerage on the purchase of a property.
• Alternate to remuneration and Remuneration for a lease are not applicable.
• The Buyer agrees to pay the Brokerage such commission if the Buyer enters into an agreement within 30 days.
• Initials of Brokerage are JS. These are the salesperson’s initials to confirm information on page 2.
• Initials of Buyer(s) are EPRP. These are the buyers’ initials to confirm information on page 2.
• SCHEDULE(S) are none. This is the confirmation that there are no schedules attached to the agreement.
• Authorized to bind the Brokerage by J. Sewell.
• Date is May 12, 20XX.
• Name of Person Signing is Jason Sewell.
• Signature of Buyer 1 is Elizabeth Park.
• Telephone Number is 123-123-1234.
• Signature of Buyer 2 is Rob Park.

• Telephone Number is 123-123-1234.
• Declaration of Insurance – Name is Jason Sewell. This is the printed name of salesperson representing
brokerage confirming they are insured by REBBA.
• Declaration of Insurance – Signature is J. Sewell. This is the signature of salesperson representing brokerage
• Acknowledgement – Date is on the 12 day of May, 20XX.
• Acknowledgement – Signature of Buyer 1 is Elizabeth Park.
• Acknowledgement – Date of signing is May 12, 20XX.
• Acknowledgement – Signature of Buyer 2 is Rob Park.
• Acknowledgement – Date of signing is May 12, 20XX.


OREA Form 300: Buyer Representation Agreement. ©2022 Ontario Real Estate Association.
Buyer Representation Agreement for the Parks
Jason has completed the buyer representation agreement with the Parks.

There are three sections on this page with a summary of the key topics that were discussed in this lesson.
Terms of, and There are several similarities between a seller representation agreement and a buyer
representation agreement. However, there are also some important differences between
parties to, a buyer
the two.
representation Important terms of, and parties to, a buyer representation agreement, such as buyer(s)
agreement details, brokerage details, property type, geographic location, commencement and
termination dates, six-month provision, and buyer’s warranty, should be included in
every buyer representation agreement.
Brokerage details, commencement and termination dates, and the six-month provision
are recorded in the same way as a seller representation agreement.
Additional Every buyer representation agreement also includes provisions that better define the
information obligations of a buyer and a brokerage and the services the brokerage provides.
typically included Provisions such as definitions and interpretations, remuneration, representation, finders
fee, referral of properties, consumer reports, indemnification, verification of
in a buyer
information, use and distribution of information, conflict or discrepancy, electronic
representation communication, electronic signatures, and schedule(s), are usually included in every
agreement buyer representation agreement.
Provisions such as definitions and interpretations, representation, finders fee,
verification of information, use and distribution of information, conflict or discrepancy,
electronic communication, electronic signatures, and schedule(s), are usually recorded in
the same way as in a seller representation agreement.
The buyer representation agreement will include a remuneration provision to clarify the
remuneration obligations of a buyer. As with the seller representation agreement, the
holdover provision applies to the buyer representation agreement.

Signing and The signing and initialling requirements in a buyer representation agreement are similar
to those in a seller representation agreement. These can be broken down into brokerage
initialling
signature, buyer(s) signature, initialling requirements across the document, and
requirements for declaration of insurance.
a buyer
representation
agreement

Lesson 4: The Seller Customer Service Agreement
This lesson introduces a seller customer service agreement used to document a customer relationship with a seller.
The lesson details the key components of this type of agreement, including the information typically included and
the signing or initialling requirements of both the seller and the brokerage.

This lesson introduces a seller customer service agreement and its various components – the terms of and parties to
the agreement, the various provisions, and the signing and initialling requirements. Similar to agreements discussed
previously, as a salesperson, you must explain all components of a seller customer service agreement and the
obligations of all parties, establish the services you will provide to the seller, and set clear expectations so that there
are no misunderstandings.
A seller customer service agreement shares similarities with a seller representation agreement. This lesson
highlights in detail these similarities and explains the difference between the two agreements. The lesson also
includes exercises to guide you in completing aspects of the seller customer service agreement.

● Describe the type of information required to identify the terms of, and parties to, a seller customer service
agreement
● Explain the additional information typically included in a seller customer service agreement
● Explain the signing and initialling requirements of a seller customer service agreement
● Complete the information required to identify the terms of, and parties to, a seller customer service
agreement
● Complete the additional information typically required in a seller customer service agreement
● Complete the signing and initialling requirements of a seller customer service agreement

Seller Customer Service Agreement Overview
As you learned earlier in this module, as a salesperson, you will be required to clearly explain the services that are
available to a client or a customer before documenting the relationship. A seller representation agreement is used
to outline and establish client relationships, but circumstances may dictate that a seller customer service agreement
may be more appropriate. For example, a buyer may have entered into a buyer representation agreement with a
brokerage and is interested in purchasing a home being sold privately by the owner. To avoid any conflicts of
interest associated with multiple representation, the brokerage offers customer services to the seller rather than
representation.
A seller customer service agreement details the limited services the brokerage will provide to the seller and gives the
brokerage the authority to obtain additional information about the property. The customer service agreement will
also document information about remuneration and how it may be applied. When working with a seller who has
signed a customer service agreement with the brokerage, you will be required to treat the seller with fairness,
honesty, and integrity and provide them with conscientious and competent service, but they will not be owed
fiduciary duties, which is often characterized by providing guidance and advice.

As the seller is a customer, you will owe them limited services. At all times, the brokerage must avoid providing
advice to the seller as this could unintentionally change the relationship to that of a client. This means you would
not provide advice concerning negotiating an offer, appropriate clauses or conditions to include, or the estimated
value of their property. In some instances, you could provide information about recent sales in the area or active
listings to support the offer being made by the buyer you are representing. Any information provided would require
the seller to reach their own conclusions.
Documenting a customer service agreement must also comply with the Code of Ethics in terms of information
before the agreement, contents of the agreement, documenting the customer relationship before any offer, and
providing a copy of the agreement immediately upon signing.

The Seller Customer Service Agreement: Remuneration Agreement for a

Property Not Listed
A seller customer service agreement is used to document the relationship and any remuneration agreement with a
seller who does not have their property listed with a brokerage. The agreement is used when a brokerage
introduces a buyer to the seller and the brokerage will not be representing the seller, but rather will be providing
limited services only. When a seller, who is selling their property privately, agrees to allow the brokerage to show the
property to a buyer, you, as a salesperson, will prepare a customer service agreement. The agreement will include
the following: confirmation that the brokerage is providing services to the seller and is not representing the seller;
remuneration amount and terms; provisions for the buyer’s deposit to be held in trust by the brokerage and then
applied to any remuneration owed by the seller; permission to place a “Sold” sign on the property.
Example:
A buyer has signed a representation agreement with a brokerage. The salesperson locates an unlisted property that
the buyer is interested in purchasing. The salesperson, on behalf of the buyer, approaches the seller to see if the
seller will allow the brokerage to show the property and pay remuneration to the brokerage. The seller agrees to
these terms and understands the brokerage will not be representing them in the transaction. The salesperson
completes a seller customer service agreement, signs it on behalf of the brokerage, and provides it to the seller for
signature. The salesperson obtains the seller’s signature prior to showing the property to the buyer.

The Seller Customer Service Agreement: Overview
A seller customer service agreement will contain information similar to that in a seller representation agreement.
The information that is common to both includes:
• Property details
• Effective and expiry dates
• Six-month provision for the term of the agreement
• Seller’s warranty
• Finders fee
• Use and distribution of information
• The Family Law Act
Exam Study Guide

Note: Earlier in this module, you learned in detail about the bullets listed above in relation to a seller representation
agreement. The same details for each of the above elements are found in a seller customer service agreement and
will be touched upon briefly in the following slides.
There are a few key areas, however, where a seller customer service agreement is distinct from a seller
• Non-exclusivity disclaimer
• Buyer Details
• No listing price identified

Similarities Between a Seller Customer Service Agreement and a Seller

Representation Agreement
Many elements are similar between a seller customer agreement and a seller representation agreement.
The following screens will highlight these similarities in the terms of, and parties to the agreement:
• Property details
• Seller’s warranty

Brokerage Information
The salesperson would insert the full legal name of the brokerage and include the telephone number. Much like the
seller representation agreement, the salesperson’s name would not be inserted in this area.
Seller Details
As a salesperson, you would insert the full legal names of the seller(s). The legal names could be verified from
various source documents such as a deed, driver’s license, passport, etc.
Property Details
As a salesperson, you would identify the property by entering the civic address and/or the legal description. With
rural properties, you could obtain the address from a tax notice or a government document. The legal description
adds clarity as does the 911 numerical code at the entrance to the property from a public road, but these are not
available in all areas.

For example, OREA Form 201 has a section where brokerage details are entered.
This section of the form also includes a section where seller details are entered.
This section of the form also has an area where the actual address or legal description of the property is entered.
From OREA Form 201: Seller Customer Service Agreement. ©2022 Ontario Real Estate Association.

Effective and Expiry Dates
As a salesperson, you will enter the date and time that the agreement takes effect and the date that it expires. 11:59
p.m. is the default expiry time but it can be changed if the parties prefer another expiry time.
Six-Month Provision
If the agreement exceeds six months in duration, the seller must acknowledge that fact by initialling to acknowledge
the duration.
Seller’s Warranty
This clause exists in both the seller representation agreement and the seller customer service agreement and
registrants generally seek initials from the seller to specifically acknowledge the warranty. The wording in different
forms may be different. In addition to warranting that they are not a party to a listing with another brokerage, the
seller in the seller customer service agreement also warrants that they have the sole and exclusive right to execute
the agreement. This statement may not exist in the seller representation agreement.

For example, OREA Form 201 has a section that allows the salesperson to fill out the time and day when the
agreement will commence and when it expires.
This section of the form also has a section where the seller is to acknowledge if they agree to a term longer than six
months.
This section of the form also has a statement where the seller warrants they have not listed the property with any
other brokerage.


Similarities in Terms of, and Parties to, a Seller Customer Service Agreement
Now that you have reviewed the various elements that are similar between the two agreements, let’s look at how all
these items come together in a form, using OREA Form 201 as an example.
1. Brokerage information: OREA Form 201 has a section where brokerage details are entered.
In this section, the full legal name and telephone number of the brokerage is entered.
2. Seller details: OREA Form 201 includes a section where seller details are entered.
In this section, the full legal name of the seller is entered.
3. Property details: OREA Form 201 has an area to identify the property.
In this section, the property is identified by entering the civic name and/or legal description.
4. Effective and expiry dates: OREA Form 201 has a section that allows the salesperson to fill out the time and
day when the agreement will commence and when it expires.
In this section, the date of commencement and expiry of the agreement is entered.
5. Six-month provision: OREA Form 201 has a section where the seller acknowledges whether they agree to a
listing of greater than six months.
This section requires the seller’s acknowledgement if the time period of the agreement exceeds six months.
6. Seller’s warranty: OREA Form 201 has a bolded line where the seller warrants they are not working with
another brokerage.
In this section, the seller warrants that they are not a party to a listing with another brokerage.

Similarities in Additional Information

There are additional elements in the agreement that are similar between a seller customer service agreement and a
seller representation agreement.
The following screens will highlight these similarities:

• Finders fee
• The Family Law Act

The clause defines the various terms found in the agreement. The clauses in both the seller representation
agreement and the seller customer service agreement are usually quite similar, with some minor differences.

For example, OREA Form 201 has a section called DEFINITIONS AND INTERPRETATIONS that includes definitions and
interpretations of terms used in the agreement.

Finders Fee
The seller acknowledges that the salesperson may receive a finder’s fee from a third-party service provider, usually a
mortgage broker or lender, and provides their consent. A second disclosure and consent are required when the
salesperson actually confirms that a finder’s fee will be received.
The seller is often asked to consent to the use of personal information, such as the sale price, to be used in
statistical data to provide comparative market analysis. In order to ensure compliance with privacy laws, the seller
consents to the use and disclosure of personal information in order to market the property. This will include the use
of photographs, videos, surveys, etc.
Family Law Act
The seller is asked to warranty that if spousal consent is necessary then the spouse has signed the agreement.

For example, OREA Form 201 has a clause called FINDERS FEES.
This section of the form also has a clause called USE AND DISTRIBUTION OF INFORMATION.
This section of the form also has a clause called FAMILY LAW ACT.

Successors and Assigns
This clause typically states that the heirs, estate trustees or any other party legally acting on behalf of the seller must
also abide by the terms of the agreement.
In the event something is added to the agreements, for example by way of a schedule, and the added part is in
conflict or there is a discrepancy with a pre-printed clause, then the added part overrides the pre-printed provision.
This clause confirms that communications may occur electronically and will still be binding on the parties.
The clause provides the required consent under the Electronic Commerce Act for the parties to use electronic
signatures with respect to the agreements. This consent, however, does not extend to other agreements such as the
agreement of purchase and sale. If electronic signatures are to be used in that document then a separate consent
will be required for each agreement.

For example, OREA Form 201 has a clause called SUCCESSORS AND ASSIGNS.
This section of the form also has a clause called CONFLICT OR DISCREPANCY.
This section of the form also has a clause called ELECTRONIC COMMUNICATION.
This section of the form also has a clause called ELECTRONIC SIGNATURES.



Similarities in Additional Information, 1
Now that you have reviewed all the additional information in a seller customer service agreement that is similar to a
seller representation agreement, let’s look at how all the elements come together in an agreement, for example in
OREA Form 201.
Definition and Interpretation: OREA Form 201 has a section that describes the terms in the agreement.
The agreement establishes and explains the terms used in the agreement.



OREA Form 201.
1. Finders fee: OREA Form 201 has a clause addressing finder’s fees.
The seller acknowledges the brokerage may receive a finder’s fee in addition to the remuneration described in
the agreement.
2. Use and Distribution of Information: OREA Form 201 has a clause that addresses the use and distribution of
information.
The seller consents to the collection, use, and disclosure of personal information by the brokerage.
3. The Family Law Act: OREA Form 201 has a clause that addresses spousal consent under the Family Law Act.
Seller warranty that spousal consent is not required.
4. Successors and assigns: OREA Form 201 has a clause that addresses successors and assigns.
Clause that identifies that heirs and assigns will be obligated to adhere to terms of the agreement.
5. Conflict or discrepancy: OREA Form 201 has a clause addresses possible conflicts or discrepancies that may
arise with additional terms or clauses added to a standard agreement.
If there is any conflict or discrepancy between any provision added and the pre-set portion, the added
provision supersedes.



OREA Form 201.
1. Electronic communication: OREA Form 201 has a clause to address the use of electronic communications.
Permits any documents or notices to be transmitted electronically. All documents and signatures are deemed
originals.
2. Electronic signature: OREA Form 201 has a clause to allow the parties to consent to the use of electronic
signatures.
Provides consent if the agreement has been signed with an electronic signature.

Distinct Elements in a Seller Customer Service Agreement
The seller customer service agreement creates limited obligations for the seller and the brokerage. However, there
are terms and conditions in this agreement that have some differences with the seller representation agreement.
The following screens will highlight the information required to identify the terms of, and parties to, a seller
customer service agreement:
• Non-exclusivity disclaimer
• Buyer’s name
• No listing price identified

Non-Exclusivity Disclaimer
A seller customer service agreement is a non-exclusive agreement with the brokerage. This means a seller can have
a customer service agreement with any number of brokerages at the same time. The seller’s obligation to pay
remuneration is to the brokerage that introduces the buyer whose offer is accepted by the seller.
A seller customer service agreement also includes a warranty statement that the seller has not listed the property
with any brokerage for sale or lease under a seller representation agreement. The seller’s initials are required by
this statement to confirm the seller has understood this term. If a seller customer service agreement is signed when
there is an unexpired seller representation agreement for the property, it could place the seller in a position of
paying remuneration to two brokerages. As a salesperson, this warranty is important to you because of your
requirements under REBBA, related to claiming remuneration if it is known that the seller is a party to a
representation agreement with another brokerage.
Example:
A salesperson approaches a potential seller who is privately offering their property for sale. The seller informs the
salesperson that they have a signed seller customer service agreement with another brokerage. The salesperson
confirms the details of this agreement to ensure the seller could sign a seller customer service agreement with this
salesperson’s brokerage.

For example, OREA Form 201 contains a section at the top that specifically states that the agreement is a non-
exclusive customer service agreement.

Buyer(s) Details
A seller customer service agreement, although non-exclusive, has provisions where the buyer, whom the
agreement pertains to, is identified. This will require a brokerage to first either have a buyer interested in the
property or to believe that the property will meet a certain buyer’s criteria, before approaching the seller. In
some cases, a broker or salesperson may approach a seller and obtain a verbal commitment to pay
remuneration should they introduce a buyer to the seller. When the broker/salesperson has a buyer, they will
return to the seller with a completed seller customer service agreement, which identifies the buyer.

For example, OREA Form 201 contains a line where the details of the buyer can be recorded. Any buyer(s) identified
in this section will be understood to be the “Buyer” referred to in the agreement.

Term of the Agreement
The effective date and expiry date of the agreement are required to be identified in the agreement. Some customer
service agreements, however, may exceed this requirement by indicating that they are non-exclusive agreements or,
in the case of a representation agreement, may state that the agreement is exclusive and irrevocable to the
brokerage.

For example, OREA Form 201 contains a section to set out the term of the agreement, including the date and time of
the start and expiry of the agreement.

No Listing Price Identified
A seller customer service agreement does not include a listing price for the property. Pricing is one of the limitations
of brokerage services to a customer that differs from those provided to a seller under a representation agreement.
In this instance, the seller determines the listing price of their property, with no advice or assistance from the
brokerage. The brokerage representing the buyer must observe due diligence in providing advice to the buyer about
the property’s fair market value and assess the appropriateness of the seller’s listing price.


Distinct Elements in a Seller Customer Service Agreement
Now that you have reviewed all the information that is different in a seller customer service agreement, let’s look at
how all these elements come together in an agreement, using OREA Form 201 as an example.
1. Non-Exclusive Disclaimer: OREA Form 201 states at the very top that it is a non-exclusive seller customer
service agreement.
This section of the form is where a disclaimer is printed stating that the agreement is non-exclusive.
2. Buyer(s) Details: OREA Form 201 contains a line where the details of the buyer can be recorded. Any buyer(s)
identified in this section will be understood to be the “Buyer” referred to in the agreement.
This section of the form is where the buyer, under which the agreement pertains to, is identified.
3. Term of the agreement: OREA Form 201 contains a section the date and time of the start and end of the
agreement.
This section of the form is where the brokerage’s scope of service is defined, and the salesperson will insert
the date and time that the agreement will begin and end.

Additional Information Included in a Seller Customer Service Agreement

Now, that you have reviewed information that is different in the seller customer service agreement, let us look at the
additional information in the agreement that is similar or identical to the seller representation agreement.
The seller customer service agreement contains important information that clearly defines the authority and
obligations for both the brokerage and the seller. This includes, among other things, authority for the brokerage to
obtain information about the property from regulatory authorities and indemnify the brokerage for any injury or
mishap that may occur on the property during the marketing of the home.
The following screens will highlight the additional information included in the seller customer service agreement.
 Deposit
 Insurance
 Verification of information
 Sold Sign
 Schedule(s)

Deposit
Should an offer between a seller and a buyer advance to the stage where a deposit is to be submitted by the buyer,
a seller customer service agreement provides the terms under which the deposit will be held. As the brokerage is
required to promote and protect the best interests of the buyer, the deposit for a transaction should be held in trust
by the brokerage.
The deposit provision also identifies the deposit will be applied towards the payment of the remuneration the seller
owes to the brokerage.
You should explain to the seller why the deposit is being held by the brokerage and not provided directly to the
seller.
A buyer will want assurance that their deposit is being safeguarded; this is accomplished by placing the deposit in
the statutory trust account of the brokerage. Once the deposit is placed in trust, it may only be disbursed by the
brokerage with written direction. While it is in the possession of the brokerage, it is protected against fraud and
bankruptcy through the RECO insurance program.

If the deposit amount is less than the remuneration owed by the seller, the seller agrees to pay the difference to
the brokerage following completion of the transaction. If the deposit amount is greater than the remuneration
amount owed to the brokerage, the brokerage refunds the difference to the seller following the completion of the
transaction.
Example:
A seller is selling their property for $500,000. The buyer in this transaction has paid a deposit of $20,000 to their
brokerage. The seller agrees to pay the brokerage a remuneration rate of 2% on the sale price. The brokerage will
thus release $10,000 to the seller after $10,000 is deducted for the payment of remuneration owed.

For example, OREA Form 201 contains a provision called DEPOSIT.

Insurance
A warranty from the seller that the property is insured aligns with the provisions in the seller representation
agreement. This includes maintaining personal liability insurance to ensure that any claims or resulting lawsuits
from others being injured or suffering property damage are covered. This provision also requires the seller to
indemnify the brokerage and their representatives against any claims made against the brokerage by anyone
visiting the property.
Example:
A buyer, while visiting a seller’s property, is injured after slipping on an icy sidewalk. The medical costs incurred will
be covered by the insurance held by the seller. Also, the brokerage is indemnified against any claims or lawsuits the
buyer might file against them.

For example, OREA Form 201 contains a provision called INSURANCE.

Verification of Information
Similar to a seller representation agreement, including a provision for verification of information in a seller customer
service agreement gives the brokerage authority to obtain information about the property from regulatory
authorities. The seller also promises to give this authority to the brokerage, as required, in the future.
In instances where there is no listing brokerage, the information provided by the seller will not have been verified by
a salesperson. The due diligence of the buyer’s salesperson is critical in ensuring the information is accurate and
complete.

For example, OREA Form 201 contains a provision called VERIFICATION OF INFORMATION.

Sold Sign
A seller customer service agreement often includes a provision where the seller identifies whether the brokerage
may place a “Sold” sign on the property after the parties have entered into a binding agreement of purchase and
sale.
Consent is obtained when the seller initials the appropriate section, thereby authorizing or not authorizing a sign on
the property.
Example:
A seller has accepted a buyer’s offer, which was conditional on the buyer obtaining financing. Notice has now been
provided to the seller that the buyer has been approved, resulting in a firm and binding agreement of purchase and
sale. Based on the terms of the seller customer service agreement, the salesperson would place a 'Sold' sign on the
seller's property.

For example, OREA Form 201 contains a provision called SOLD SIGN.

Schedule(s)
Attaching schedule(s) to a seller customer service agreement follows the same procedure as attaching schedules to
a seller or a buyer representation agreement. However, the specifics of the schedules may differ from those
attached to a seller representation agreement.
Example of an Alternate Remuneration Arrangement:
The seller and the brokerage have agreed to a “graduated” remuneration structure and the details are described in
the schedule, i.e., 3% on the first $300,000 of the selling price, 2% on the selling price between $300,000 and
$500,000, and 1% on the selling price over $500,000 plus HST.
Examples of Seller Instructions:
No showings between 4 p.m. and 6 p.m. or after 9 p.m.

Consent for a lockbox to facilitate further inspections by the buyer, home inspector, and appraiser, provided a
representative of the brokerage is present.
Example of Services to Seller:
Prompt delivery of all required documentation as per REBBA; delivery of documents to the seller’s lawyer (included
in the agreement of purchase and sale); information on properties that have sold on the seller’s street or in the
immediate area within the last six months.

For example, OREA Form 201 contains a line that references schedules.


Additional Information in a Seller Customer Service Agreement, 1
Now that you have reviewed the additional information included in a seller customer service agreement, let’s look at
how all these elements come together in a form, considering as an example OREA Form 201.
1. Deposit: OREA Form 201 contains a provision that speaks to the handling of a deposit.
This section of the form is where the terms under which the deposit will be held is stated.
2. Insurance: OREA Form 201 contains a provision that addresses the seller’s commitment to warrant that the
property is insured.
This section of the form is where a statement informing the buyer that the seller warrants the property
insured.
3. Verification of Information: OREA Form 201 contains a provision in which the seller authorizes the brokerage
to obtain information about the property.
This section of the form verifies that the seller authorizes the brokerage to obtain information about the
property from regulatory authorities.


Additional Information in a Seller Customer Service Agreement, 2
Now that you have reviewed the additional information included in a seller customer service agreement, let’s look at
how all these elements come together in a form, considering as an example OREA Form 201.
1. Sold Sign: OREA Form 201 contains a provision where the seller indicates whether they will allow the use of a
sold sign.
This section of the form is where the seller selects whether the brokerage may place a “Sold” sign on the
property after the parties have entered into a binding agreement of purchase and sale.
2. Schedule(s): OREA Form 201 contains a line for the agreement to identify any schedules that form part of the
agreement.
This section of the form is where attached schedules are identified.

Remuneration and Representation
The following screens will highlight the information about remuneration and representation in the seller
customer service agreement:
• Remuneration
• Holdover Provision
• Representation Service

Remuneration
The brokerage and the seller sign a seller customer service agreement, which introduces the buyer to the seller and
provides limited services to the seller. In exchange for this, the seller agrees to compensate the brokerage through
a remuneration that could be a percentage of the sale price, a specified amount, or both.
One important declaration a seller will make is that this remuneration will be owed to the brokerage if the seller
agrees to, or accepts, an offer from the buyer that the brokerage introduced even if the seller signs a seller
representation agreement or a customer service agreement with another brokerage.
This provision will usually also explain to the seller that they might owe remuneration to the brokerage even if the
transaction does not close, if such non-completion is due to the default or neglect of the seller.
Example:
A seller signs a seller customer service agreement with a brokerage who introduces a buyer to them. While
negotiating with that buyer, the seller signs a seller customer service agreement with a different brokerage. The
negotiations with the first buyer materialize into an offer that the seller accepts. The seller is obligated to pay
remuneration to the first brokerage even though they have a seller customer service agreement signed with the
second brokerage.

Holdover Provision
Like other representation agreements, a holdover provision is often part of the seller customer service agreement.
Through the holdover provision, a seller agrees to pay remuneration to the brokerage if they accept an offer from
the buyer introduced by that brokerage within a specific timeframe after the agreement expires.
Example:
ABC Real Estate Inc. has a buyer interested in purchasing a property that is being privately offered for sale. A seller
customer service agreement has been signed and the seller agrees to pay the brokerage a remuneration rate of 2%
of the sale price, if an agreement is reached during the term and with the buyer identified on the agreement.
Negotiations with the buyer fail and the seller’s customer service agreement expires. During the holdover period,
the buyer decides to place a second offer on the property viewed previously and it gets accepted.
The brokerage will be entitled to claim remuneration as agreed to in the “holdover” provision of the commission
clause in the seller customer service agreement. This is a contractual matter that may require litigation to resolve
should the seller refuse to compensate the brokerage.

For example, OREA Form 201 contains a provision called COMMISSION.

Customer Service
The obligations owed to a seller and the limited services being provided by the brokerage under a seller customer
service agreement must be explained to the seller. The seller must clearly understand they are not being
represented by the brokerage, even though they might be paying remuneration to the brokerage.
Acknowledgement
A seller customer service agreement is typically used when the brokerage is representing a buyer. Because the
buyer is a client, the brokerage’s primary duty is to protect and promote the interests of the buyer. As part of this
obligation, while negotiating the transaction, any information about the seller and the property will be made known
to the buyer. The brokerage does not owe the duty of full disclosure to the seller. However, the seller must be
treated with fairness, honesty, and integrity. It is important for the seller to understand the brokerage’s obligations
to ensure there is no misunderstanding about the services provided by the brokerage.

Example:
The brokerage can prepare the agreement of purchase and sale on behalf of the buyer and deliver this to the seller.
Advising on the seller’s options when addressing the offer would not be part of the services a brokerage would
provide.
A seller is advised that the brokerage might enter customer service agreements and representation agreements
with other sellers and buyers. In instances where the brokerage represents or provides services to more than one
seller or buyer for the same transaction, the Code requires the brokerage to inform all parties about their
relationship with every other party as soon as possible and before an offer is made.

For example, OREA Form 201 contains a provision called REPRESENTATION AND CUSTOMER SERVICE.


Additional Information in Seller Customer Service Agreement
Now that you have reviewed information about remuneration and representation in a seller customer service
agreement, let’s look at how these elements come together in an agreement like OREA Form 201.
1. Commission: OREA Form 201 contains a provision that addresses commission to be paid.
This section of the form is where the seller agrees to compensate the brokerage through a remuneration that
could be a percentage of the sale price, a specified amount, or both.
2. Holdover Provision: OREA Form 201 contains a provision that addresses a holdover provision.
This section of the form is where the seller agrees to pay remuneration to the brokerage if they accept an offer
from the buyer introduced by that brokerage within a specific timeframe after the agreement expires.
Page 2 includes the following section:

Representation and Customer Service: OREA Form 201 contains a provision that acknowledges the type of
relationship the parties have entered.
This section of the form outlines to the seller they are not being represented by the brokerage, even though they
might be paying a remuneration to the brokerage.

Seller Raj Bindra, on signing a seller customer service agreement with XYZ Realty
Ltd., agrees to certain terms for payment of remuneration.
In which scenarios will the seller customer owe remuneration to XYZ Realty Ltd.?
There are three options. There are multiple correct answers.
XYZ Realty Ltd. introduces a buyer to the seller. An offer is negotiated but the seller customer service
1 agreement expires before the offer is accepted. The agreement, however, has a holdover provision for
60 days and the offer is accepted by the seller three weeks after the expiry of the agreement.
XYZ Realty Ltd. introduces a buyer to the seller. While negotiations are ongoing with the buyer, the seller
signs a seller representation agreement with Brokerage B, which introduces another buyer for the
2
seller’s property. The seller accepts the offer from Brokerage B’s buyer while the seller customer service
agreement with XYZ Realty Ltd. is still valid.
XYZ Realty Ltd. introduces a buyer to the seller. While negotiations are ongoing with the buyer, the seller
3 signs a seller representation agreement with Brokerage B. A few days later, the seller accepts the offer
from XYZ Realty Ltd.’s buyer while the seller customer service agreement is still in effect.

When a brokerage signs a seller customer service agreement, they are not representing
the seller but still owe limited duties and services to the seller.
Which of the following scenarios represent the duties a salesperson would provide to a seller
when they sign a seller customer service agreement with the brokerage?
The brokerage that has signed a seller customer service agreement with a seller is also representing the
1 buyer client. The seller asks the brokerage to disclose why the buyer is interested in purchasing the
property to be able to better negotiate the sale price.
The seller is having a difficult time arriving at an asking price for their property and asks the brokerage’s
2
salesperson for advice on establishing an appropriate listing price.
The seller requests that the brokerage’s salesperson come to their home and collect the accepted
3
agreement of purchase and sale.
The seller wants some help in deciding the asking price for their property and has asked the brokerage
4 for relevant information.

Signing and Initialling Requirements in a Seller Customer Service Agreement
The signing and initialling requirements in a seller customer service agreement are similar to those in a seller
representation agreement. These similar requirements include:
● Brokerage signature
● Seller signature and initials where required
● Spousal consent
● Declaration of insurance
● Seller’s acknowledgement of the terms of the agreement and receipt of a copy of the agreement
Even though a seller customer service agreement is a non-exclusive agreement, signing and initialling would still be
completed by the seller and the brokerage documenting the agreement.

For example, OREA Form 201 contains a section where the parties sign and date the agreement.



Example of a Completed Seller Customer Service Agreement
Now that you have seen the different provisions in OREA Form 201 in partial views, let’s see how all the different
parts come together to make a complete form. Let us consider a simple scenario where sellers Martin and Gain
Raymond are entering into a seller customer service agreement with ABC Real Estate Inc. for their property located
on Lot 25, Plan 92M-2345, City of Anycity, Region of Anyregion. Their salesperson, Rita Simmonds is helping them
prepare the agreement. We have reproduced an example of a completed seller customer service agreement using
OREA Form 201 that Rita would have filled out for her client, as per their requirements.

Terms of, and A seller customer service agreement has similarities as well as differences with a
seller representation agreement. Sometimes, circumstances may dictate that a seller
parties to, a seller
customer agreement may be more appropriate. In comparison to a seller
customer service representation agreement, the salesperson will owe only limited services to the
agreement seller.
A seller customer service agreement contains information similar to that in a seller
However, aspects like the buyer(s) details, non-exclusivity disclaimer, and the absence
of a listing price are different in a seller customer service agreement compared to a
Additional Most of the additional information recorded in a seller customer service agreement is
the same as that in a seller representation agreement.
information typically
However, provisions such as remuneration, representation and customer service,
included in a seller sold signs, deposit, insurance, and verification of information are different in a seller
customer service customer service agreement compared to a seller representation agreement.
agreement
Signing and initialling The signing and initialling requirements in a seller customer service agreement are
similar to those in a seller representation agreement. These can be broken down into
requirements for a
brokerage signature, seller(s) signatures, spousal consent, initialling across the
seller customer document, and declaration of insurance.
service agreement

Lesson 5: The Buyer Customer Service Agreement
This lesson introduces a buyer customer service agreement used to document a customer relationship with a buyer.
The lesson details the key components of this type of agreement, including the information typically included and
the signing or initialling requirements of both the buyer and the brokerage.

This lesson introduces the buyer customer service agreement and its components: the terms of, and parties to, the
agreement, the provisions typically included, and the signing and initialling requirements. As a salesperson, you
should be able to explain the customer service agreement to a buyer so there is a full understanding of the
obligations of all parties and the services provided by the brokerage. Documentation provides the buyer with a clear
outline of the expectations so there are no misunderstandings about the services provided by the brokerage.
Although a buyer customer service agreement is similar to a buyer representation agreement, this lesson will
highlight and explain the differences between the two agreements in detail.

• Describe the type of information required to identify the terms of, and parties to, a buyer customer service
agreement.
• Explain the additional information typically included in a buyer customer service agreement.
• Explain the signing and initialling requirements of a buyer customer service agreement.
• Complete the information required to identify the terms of, and parties to, a buyer customer service
agreement.
• Complete the additional information typically required in a buyer customer service agreement.
• Complete the signing and initialling requirements of a buyer customer service agreement.

Introduction to the Buyer Customer Service Agreement
A buyer customer service agreement is a non-exclusive agreement between a buyer and a brokerage for customer
service. This agreement is used in situations where a buyer is not represented by the brokerage as a client but will
receive limited services only. A key difference is that as a salesperson, you do not provide advice to a customer – this
is only provided in a client relationship. You will have to treat a customer fairly, honestly, and with integrity, but you
will not owe them any fiduciary duties or be required to promote and protect their best interests as you will if they
choose to sign a representation agreement. A buyer customer service agreement can be used to avoid multiple
representation and conflicts of interest if the brokerage signing the agreement is also representing the seller in the
same trade in real estate. As a salesperson it will be important for you to explain to the buyer the difference
between a representation agreement and a customer service agreement, including the advantages and
disadvantages of each, to allow the buyer to make an informed decision.
A buyer customer service agreement typically states that no remuneration will be paid for the services provided by
the brokerage to the buyer unless it is specifically agreed to in writing. The agreement also confirms, in writing, that
the brokerage is not representing the interests of the buyer. The buyer, through this agreement, acknowledges that
they have been advised to conduct their own enquiries about the condition of the property. The seller would still
have an obligation to disclose known latent defects and, on behalf of the brokerage, you would have to disclose any

material facts to the buyer customer. The buyer customer should consider seeking independent legal advice prior to
preparation of an offer to purchase the property.
Example:
A brokerage is representing the seller in the marketing of their property. A buyer who is interested in the property
approaches the listing salesperson during an open house. The salesperson informs the buyer that they are
representing the seller. At this point, the salesperson should explain the difference between a representation
agreement and a customer service agreement to the buyer to help them understand what is in their best interest.
The salesperson may wish to enter into a customer service relationship with the buyer to avoid multiple
representation. Though technically having a seller client and a buyer customer is not multiple representation under
REBBA, it’s important that the buyer be treated fairly and be provided with the necessary information to make an
informed decision.

The Buyer Customer Service Agreement: Overview
A buyer customer service agreement will contain information similar to that in a buyer representation agreement.
The information that is common to both includes:
• Buyer(s) details
• Effective and Expiry dates
• Property type
• Buyer’s warranty
• Indemnification
• Finders fee
Earlier in this module, you learned in detail about the bullets listed above in relation to a buyer representation
agreement. The same details for each of the above elements are found in a buyer customer service agreement and
will be touched upon briefly in this lesson.

There are a few key areas, however, where a buyer customer service agreement is distinct from a buyer
representation agreement which include:
• Remuneration
• Representation or Customer Service
• Signature Areas

Similarities with Buyer Representation Agreement
There are elements in the buyer customer service agreement that are similar to the buyer representation
agreement with respect to the terms of, and parties, to the agreement.
The following screens will highlight the information that is entered similarly in both types of agreements. This
information includes:
• Brokerage information
• Buyer’s details
• Property Type
• Geographic Location
• Buyer(s) Warranty

Brokerage Information
The section provides identification of the brokerage using the full registered brokerage name.
Buyer’s Details
This section is where the buyer is identified using the full legal name of each buyer.

For example, OREA Form 310 contains an area where the brokerage’s full name, address, telephone, and fax
numbers are to be completed.
This section of the form also contains a line where the legal name of the buyer(s) will be entered. They are then
referred to as “Buyer” throughout the agreement.
From OREA Form 310: Buyer Customer Service Agreement. ©2022 Ontario Real Estate Association.

Effective and Expiry Dates
The salesperson inserts the date and time the agreement takes effect and the date and time that it expires.
Six-Month Provision for the Term of the Agreement
If the agreement exceeds six months, the buyer customer must consent and initial next to the term of the
agreement to confirm their consent.

For example, OREA Form 310 contains a section where the commencement and expiry of the agreement is entered.
You should note that this section of the OREA form also contains a section with bolded text stating buyer’s initials
would have to be obtained if the agreement exceeds six months.

Property Type
The contract must include a clear description of the property type being sought. The section would typically
include a general description of the type of property being sought such as single family residential, multi-family
residential (maximum four units), residential condominium, etc.
Geographic Location
The section provides a general description of the area within which the property is being sought, which would
include specific and definable boundaries. This could also be a specific address of one or more properties.
Buyer’s Warranty
The buyer is typically expected to warrant that they have not signed a representation agreement with any other
brokerage.

For example, OREA Form 310 contains a line where the property type (based on the intended use of the property)
will be entered.
This section of the form also contains a section where the geographic location of the property being considered will
be entered.
This section of the form also contains a provision where the buyer warrants they are not party to a buyer
representation agreement, which the buyer is expected to initial.


Similarities with Buyer Representation Agreement
Now that you have reviewed elements in the buyer customer agreement that are similar to the buyer
representation agreement, let’s look at how they come together in an agreement, for example in OREA Form 310.
1. Brokerage details: OREA Form 310 contains a section where details of the brokerage are to be inserted.
Brokerage details including telephone number is identified.
2. Buyer details: OREA Form 310 contains a line where the legal name of the buyer(s) will be entered. They are
then referred to as “Buyer” throughout the agreement.
Full legal name of buyer(s) is identified.
3. Effective and expiry dates: OREA Form 310 contains a section where the commencement and expiry of the
agreement is entered, including the date and time of day.
Commencement and expiry of the agreement is entered.
4. Six-month provision: OREA Form 310 contains a bolded text stating buyer’s initials would have to be obtained
if the agreement exceeds six months and they agree.
Section for buyer’s consent if agreement exceeds six months.
5. Property type: OREA Form 310 contains a line where the property type (based on the intended use of the
property) will be entered.
Description of property type is provided.
6. Geographic location: OREA Form 310 contains a line where the geographic location of the property being
considered will be entered.
General description of area being sought is entered.
7. Buyer’s warranty: OREA Form 310 contains a statement where the buyer warrants that the Buyer is not a
party to a representation agreement.
Buyer’s warranty that no representation agreement has been signed.

Similarities in the Additional Information

There is additional information entered in the buyer customer service agreement that is similar to the buyer
The following screens will highlight the information that is entered similarly in both types of agreements. This
information includes:
• Indemnification
• Finders fee

The section typically defines the parties and the type of transaction that is covered by the agreement. The clause in
the buyer representation agreement tends to be more detailed and includes other individuals that may be covered
by that agreement, but both are expected to define specific elements of the agreement.

For example, OREA Form 310 contains a clause that captures definitions such as that of buyer, seller, real estate
board, and commission.

Indemnification
Much like the buyer representation agreement, here too the customer acknowledges that the brokerage is not
qualified in determining the physical condition of the land and improvements and will make their own enquiries to
confirm the condition of the property.
Finders Fee
An acknowledgement and consent for the brokerage to receive a finder’s fee from a third-party professional in
addition to any remuneration payable. This section is similar to what is found in the buyer representation
agreement.
Much like what is found in the buyer representation agreement, this is a disclosure made under the Personal
Information Protection and Electronic Documents Act regarding the use of any personal information collected by the
brokerage and intended to be used in a transaction with a corresponding consent by the buyer to do so.
Conflict and Discrepancy

If anything is added to the agreement by the parties, the added provision will override the pre-set provisions to the
extent of such conflict or discrepancy. This is similar to the provision found in the buyer representation agreement.
This is an agreement by the parties that communication can be made by electronic means.
This is the consent of the parties to use electronic signatures pertaining to this agreement as required by the
Electronic Commerce Act.
Schedule(s)
Attaching schedule(s) to a buyer customer service agreement follows the same procedure as attaching schedules
to any other agreement. Schedules used for a buyer customer service agreement could include the terms where
the buyer agrees to pay a remuneration to the brokerage. A schedule would also be used to identify the services
the brokerage is agreeing to provide under the agreement.

For example, OREA Form 310 contains a clause called INDEMNIFICATION.
This section of the form also contains a clause called FINDERS FEE.
This section of the form also contains a clause regarding the use and sharing of personal information.
© 2019 Real Estate Council of Ontario

This section of the form also contains a clause that deals with conflicts or discrepancies within the contract. In
particular, if a provision is added to a standard contract, the specific terms override the standard pre-set provision
of the contract.
This section of the form also contains a clause that addresses the use of electronic communications, so the parties
understand what is permitted.
This section of the form also contains a clause that addresses the use of electronic signatures.
This section of the form also contains a reference to any schedules that may be added to the agreement.
© 2019 Real Estate Council of Ontario


Now that you have reviewed the additional similarities between the information in the buyer customer agreement
and the buyer representation agreement, as well as the minor differences, let’s look at how all these elements come
together in the agreement, like in OREA Form 310.
Definitions and interpretations: OREA Form 310 contains a section that outlines key definitions and
interpretations.
This section of the form establishes and explains the terms used in the agreement.
1. Indemnification: OREA Form 310 contains a provision informing the buyer that the brokerage and its
employees are indemnified, or protected, against any defects found in the property.
This section of the form informs the buyer that the brokerage and its representatives are not responsible for
any defects found in the properties the buyer views.
2. Finders Fee: OREA Form 310 contains a clause that allows the buyer to acknowledge that there may be a
buyer’s fee.
This section of the form is where the buyer consents to a finder’s fee/referral incentive being received and
retained by the brokerage.
3. Use and distribution of information: OREA Form 310 contains a clause regarding the use and sharing of
personal information.
This section of the form is where the buyer consents to the collection, use, and disclosure of personal
information by the brokerage to assist with the facilitation of the transaction.


Now that you have reviewed the additional similarities between the information in the buyer customer agreement
and the buyer representation agreement, as well as the minor differences, let’s look at how all these elements come
together in the agreement, like in OREA Form 310.
1. Conflict or discrepancy: OREA Form 310 contains a clause that explains what happens if something is added
to the pre-set agreement form and how discrepancies will be addressed.
This section of the form informs the buyer that If something is added to the agreement, then the provision(s)
that were added will override the text or pre-set provisions in the form.
2. Electronic communication: OREA Form 310 contains a clause that addresses the use of electronic
communications and the sharing of documents electronically.
This section of the form permits any documents or notices to be transmitted electronically.
3. Electronic signature: OREA Form 310 contains a clause that allows the parties to agree to the use of
electronic signatures.
This clause provides consent for the parties’ use electronic signatures with respect to the agreement.
4. Schedule(s): OREA Form 310 contains a space to identify any schedules that form part of the agreement.
This section of the form indicates any attached schedules.


A buyer visits the new home sales office of a condominium apartment building on Main
Street. He speaks with the salesperson and discusses the possibility of buying a condo
unit. The salesperson explains that she is representing the interests of the seller and can
provide customer service to the buyer. The buyer informs the salesperson that he has
already signed a buyer customer service agreement with a different brokerage for a
condo in a new development on Jefferson Street in the same city.
Identify the correct statements regarding the buyer customer service agreement.
Even though the buyer is interested in purchasing a condo unit, he cannot sign a buyer customer service
1 agreement because he has already signed a buyer customer service agreement with a different
brokerage.
If the buyer purchases a condo unit on Main Street, he will be liable for the paying remuneration twice
2
because he has signed two buyer customer service agreements.
Under the agreement, the salesperson cannot provide advice to the buyer but does have an obligation
3
to disclose known latent defects about the property.
The buyer takes the buyer customer service agreement home with him to read it completely before
4 signing. If he signs it the next day and faxes it to the salesperson, he is deemed to have retained a true
copy.

Differences in the Buyer Customer Service Agreement
One key aspect of the buyer customer service agreement pertains to the representation and customer service
provision, which points out that the brokerage will not be representing the buyer and may be representing the
seller. It is distinct from the buyer representation agreement in that there is often no obligation by the buyer to pay
remuneration to the brokerage.
The following screens will highlight certain aspects in the buyer customer service agreement that are different from
the buyer representation agreement:
• Remuneration
• Representation and Customer Service

Remuneration
A buyer customer is often not obligated to pay any remuneration to the brokerage for the services provided under a
buyer customer service agreement, since the buyer’s brokerage generally expects payment to come from the seller.
In some instances, a buyer may agree to a customer service agreement, and also agree to pay the brokerage a
remuneration or other remuneration. In these situations, the brokerage would detail this term in writing as part of
the agreement.
The Code of Ethics requires a brokerage to show all properties of interest to a buyer, regardless of any offer of
remuneration or other remuneration. However, this obligation only applies to a buyer who is a client. As the buyer
customer is not obligated to compensate the brokerage, the brokerage is not obligated to show any property to the
buyer if the remuneration payable by the seller or the listing brokerage is not approved by the brokerage and
salesperson. In this instance, the buyer could agree to pay remuneration to the brokerage to ensure all properties
of interest are shown.

For example, OREA Form 310 contains a provision that explains the remuneration agreement between the parties.

Representation and Customer Service
Unlike the buyer representation agreement, the buyer customer service agreement discusses and discloses
customer service and includes an acknowledgement that the brokerage has provided information on other topics,
such as multiple and single representation, and may disclose the buyer’s information to a client if applicable.

For example, OREA Form 310 contains a clause called REPRESENTATION AND CUSTOMER SERVICE that explains the
customer service relationship the buyer is entering.


Information Unique to the Buyer Customer Service Agreement
Now that you have reviewed the differences in the buyer customer agreement, let’s look at how they are presented
in the agreement, for example OREA Form 310.
1. Commission: OREA Form 310 contains a provision that sets out the commission agreement between the
buyer and the brokerage.
This section of the form clarifies the remuneration obligations of a buyer.
2. Representation and Customer Service: OREA Form 310 contains a clause that explains the difference
between representation and customer service.
This section of the form confirms that the brokerage and you, as a salesperson, have explained the different
types of agency and other relationships that may occur in a real estate transaction.

A buyer signs a buyer customer service agreement with a brokerage. The salesperson
has recently listed a property for sale that appears to meet this buyer’s criteria.
Which of the following duties would the salesperson be obligated to provide to the buyer as
part of the signed buyer customer service agreement? Assume the agreement has had no
revisions or schedules added.
Share information about the property and provide copies of recent sales and listings to help the buyer
1
make an informed decision about buying the seller’s property.
2 Provide the buyer advice about the offer price for the property and any other terms being negotiated.
Help the buyer understand the documentation they are asked to sign, and deliver to the buyer any
3
signed copies of these documents.
Show the buyer other similar properties to ensure they have seen a full range of available listings,
4
regardless of the remuneration.

Signing and Initialling Requirements of a Buyer Customer Service Agreement
A buyer customer service agreement, although non-exclusive, should still contain signatures and initials by the
buyer and the brokerage. These requirements are similar to those in a buyer representation agreement and include:
• Buyer signature and initials where required
• Buyer’s acknowledgement of the terms of the agreement
The buyer's contact information is obtained in the agreement. The brokerage will want to ensure that the buyer is
not a party to a buyer representation agreement with another brokerage (that is, a buyer with the same name
but a different address).

For example, OREA Form 310 contains space for the necessary information and signatures.


Example of a Completed Buyer Customer Service Agreement
In the previous screens, you saw how OREA Form 310 looks and the purpose it serves. Now, let’s consider how it is
filled out.
Let’s consider a simple scenario where buyers Bruna and David Almeida are in a buyer customer service agreement
with XYZ Realty Ltd. Jason Sewell is their salesperson. The buyers are interested in buying a property in Anycity,
Anyregion. We have reproduced an example of a completed buyer customer service agreement using OREA Form
310 that Jason would have filled for his client, given their individual requirements.

Terms of, and Although a buyer customer service agreement is similar to a buyer representation
agreement, there are key differences between the two.
parties to, a
buyer customer All the terms of, and parties to, a buyer customer service agreement are recorded in
service the same way as in a buyer representation agreement. These terms include
agreement brokerage details, buyer(s) details, property type, geographic location,
commencement and termination dates, six-month provision, and the buyer’s
warranty.
A buyer customer service agreement identifies that it is a non-exclusive and not a

representation agreement. Simply put, this means that a buyer can sign any number
of overlapping buyer customer service agreements without creating a conflict of
interest with other brokerages that they have signed a similar agreement with.
As a salesperson, you will use these agreements when you are working with an “un-
represented buyer” — in other words, a buyer who has not entered into a buyer
representation agreement with another brokerage. An example would be a
salesperson representing a seller is holding an open house for the public. A person
visits the open house and decides they would like to submit an offer through the
listing brokerage. After explaining the service options, among other things, available
through the brokerage as per Section 10 of the Code, including representation and
customer service, the parties agree to enter a buyer customer service agreement. The
salesperson completes a buyer customer service agreement, signs it on behalf of the
brokerage, and presents it to the buyer for signature. They then proceed to prepare
the offer for the buyer’s signature.

Additional Most of the additional information recorded in a buyer customer service agreement
is the same as that in a buyer representation agreement.
information
typically included in One key aspect of a buyer customer service agreement is that there is often no
a buyer customer obligation by the buyer to pay remuneration to the brokerage.
service agreement
Signing and Even though the buyer customer service agreement is non-exclusive, it should
contain signatures and initials by the buyer and the brokerage.
initialling
requirements for a The signing and initialling requirements in a buyer customer service agreement are
buyer customer similar to that in a buyer representation agreement.
service agreement
The buyer is required to record their address while signing the agreement, so they
can be identified and contacted as the transaction progresses toward closing.

Lesson 6: Altering the Terms of a Representation or a Customer Service

Agreement
This lesson details how changes required to a representation or customer service agreement can be completed,
including an amendment, suspension, cancellation, or assignment.

The relationship between a brokerage and a seller or a buyer can be established in several ways, including a written
document, a verbal understanding, or an implied relationship based on the actions and words of a salesperson. You
will want to document this relationship by way of a written agreement as early as possible in the course of your
interactions with a seller or a buyer to avoid misunderstandings and confusion regarding the obligations owed and
the services being provided. The previous lessons detailed the options for documenting a relationship with a seller
or a buyer, whether as a client or a customer. When changes or alterations to that relationship are required, a
written document will be used to confirm the revised agreement. Typically, changes to the representation or
customer service agreement include amending the terms, cancelling the agreement, terminating the agreement, or
suspending the agreement.
Revisions to an agreement may be initiated by the seller, the buyer, or the brokerage. Depending on the change
required, as a salesperson, you will typically be involved in the initial discussion prompting the change, and the
preparation and signing of the appropriate documentation. You will be required to accurately complete a document

and competently explain it to the other party, as this will help ensure a full understanding and agreement between
the brokerage and the seller or the buyer.

• Identify additional documents associated with a seller representation agreement.
• Identify additional documents associated with a buyer representation agreement.
• Identify additional documents associated with a customer service agreement.

Introduction to Altering the Terms of a Seller Representation Agreement
A seller representation agreement details the terms between a brokerage and a seller related to the listing and
marketing of the seller’s property. Should any of these terms need to be revised once the agreement has been
signed, the change will come into effect by way of the parties signing an additional document. When signed, the
revised term(s) takes effect while all other terms to the representation agreement remain the same. For a seller
representation agreement, the following four types of changes are available: amendment, suspension, cancellation,
and assignment.

Amendment to a Seller Representation Agreement
An amendment is used to make changes to the previously agreed upon terms between the brokerage and the seller.
For the amendment to take effect, the seller’s initials are required by the revised term to acknowledge the change.
The seller and, when applicable, a non-titled spouse would sign for spousal consent. A representative of the listing
brokerage will also sign the amendment. As a salesperson working with the seller, you will include the exact details
of the terms that are being changed in the amendment and will typically sign this on behalf of the brokerage.
The two most common amendments pertain to a change in the listing price and a change to the expiry date of the
agreement. To extend the expiry date, the new terms must be agreed upon prior to the expiry of the current
agreement; otherwise, a new seller representation agreement would be required rather than an amendment.
Should the new expiry date extend the listing agreement to more than six months, to comply with the Code of
Ethics, the brokerage must seek the seller’s agreement and acknowledgement by initialling the relevant clause.
Other amendments could include a change, correction or update to other terms, or information originally obtained.
This could include changes such as:

● Including additional services provided by the brokerage – for example, additional open houses will be held
● Revising the right to place a “For sale” or “Sold” sign on the property – for example, the original listing does not
permit the brokerage’s sign; however, the seller later agrees to permit signage
● Correcting information – for example, a previously undisclosed first right of refusal has now come to light
● Revising remuneration terms – for example, a seller wishes to increase the remuneration payable to a co-
operating brokerage
● Revising other terms – for example, chattels and fixtures that may be added or deleted
An example of a form that may be used as an amendment to a seller representation agreement (also known as an
amendment to a listing agreement) is shown on the following screens.

For example, OREA Form 240 shows how to document an amendment to a seller representation agreement.
From OREA Form 240: Amendment to Listing Agreement. ©2022 Ontario Real Estate Association.

Additional Forms Associated with a Seller Representation Agreement
The following screens will highlight the information about other documents used to make changes to a seller
representation agreement. These documents include:
• Suspension of a seller representation agreement
• Cancellation of a seller representation agreement
• Assignment of a seller representation agreement

Suspension of a Seller Representation Agreement
A seller representation agreement can be suspended when the marketing activities for the property need to be
stopped for a specified period of time. This would include any advertising or showing of the property. A suspension
may be used to accommodate an illness in the family, a major life event (such as a wedding or a funeral), or to repair
damages.
As the suspension of the agreement impacts the marketing and showing of the property, a suspension is required to
provide notice of this change to other brokerages and salespersons. Typically, when a seller representation
agreement is signed, the property is required to be available for showings at all reasonable times. Therefore, if the
property is not available, an alteration to the listing is required and notice to this effect must be given to all
brokerages and salespersons.
When documenting a suspension to a seller representation agreement, as a salesperson you will include details
about the effective date of the suspension, the date when the suspension expires, and when the marketing activities
for the property will resume.

The seller’s signature and, when applicable, the non-titled spouse’s signature for spousal consent, are required to
suspend a seller representation agreement. Typically, consent for a suspension can only be executed by a broker of
record or a manager of the brokerage. A salesperson is not authorized to sign a suspension of a seller
representation agreement on the brokerage’s behalf.
The commencement and end date for the suspension should be identified on the document. The listing is neither
terminated nor expired, and the holdover period remains as previously identified.
Example:
A seller client calls the brokerage’s office stating that their children are going to be home for the whole of the next
week due to a measles outbreak at their school. The brokerage’s salesperson and the seller discuss the situation
and agree to suspend the seller representation agreement for a week to ensure the seller is not interrupted with
requests for the property to be shown.
An example of a form that may be used as a suspension to a seller representation agreement (also known as a
suspension to a listing agreement) is shown on the following screens.

For example, OREA Form 241 shows how to document a suspension of a seller representation agreement.
From OREA Form 241: Suspension of Listing Agreement. ©2022 Ontario Real Estate Association.

Cancellation of a Seller Representation Agreement
Sometimes, a seller and their brokerage mutually agree to terminate their seller representation agreement before
the agreement expires. A cancellation releases both the seller and listing brokerage from the terms of the seller
representation agreement. All marketing activities related to selling the property cease immediately.
The holdover period agreed to in the seller representation agreement remains in effect, and if the seller sells their
property during the remaining portion of the original listing period or the holdover period to a buyer introduced to
them when the agreement was active, the seller will have remuneration obligations to the brokerage, unless there
are other terms agreed to between the parties.
The seller and, when needed, the non-titled spouse’s signatures are required to cancel a seller representation
agreement. Typically, consent for the cancellation on behalf of the brokerage must be obtained from the broker of
record or a manager at the brokerage. Typically, a salesperson cannot cancel a seller representation agreement on
behalf of the brokerage.
Example:
A seller receives an offer from his company to take a position in another country. The seller decides to sell his
current home and list the property with a brokerage. Two weeks later, the seller learns that his transfer is cancelled
due to an internal reorganization of the company. The seller discusses the matter with his salesperson and both the
seller, and the brokerage mutually agree to cancel the seller representation agreement.
An example of a form that may be used as a cancellation to a seller representation agreement (also known as a
cancellation of a listing agreement) is shown on the following screens.

For example, OREA Form 242 shows how to document a cancellation of a seller representation agreement.
From OREA Form 242: Cancellation of Listing Agreement. ©2022 Ontario Real Estate Association.

Assignment of a Seller Representation Agreement
With the consent of the seller, the listing brokerage can assign the agreement to another brokerage by preparing an
assignment of the seller representation agreement. If a seller representation agreement is assigned, it releases the
original listing brokerage from all the obligations of the agreement and assigns all rights and obligations to the other
brokerage.
When assigning a seller representation agreement, you will include details of the brokerage that is assigning the
agreement as well as details of the brokerage the agreement will be assigned to. You will also include a declaration
from the brokerage that is assigning the seller representation agreement that they are releasing the seller from any
claims for compensation, or any other interests the brokerage might have for that property.
The seller’s and, when needed, the non-titled spouse’s signature are required to assign a seller representation
agreement to a new brokerage. Typically, only a broker of record or a manager at the listing brokerage can assign a
seller representation agreement to another brokerage. A copy of the assignment must be returned to the listing
brokerage before the effective date of the assignment.
Typically, a seller representation agreement is assigned when a salesperson transfers to another brokerage and is
permitted to transfer the listing agreement with them to the new brokerage.
An example of a form that may be used as an assignment to a seller representation agreement (also known as an
assignment to a listing agreement) is shown on the following screens.

For example, OREA Form 243 shows how to document an assignment of a seller representation agreement.
From OREA Form 243: Assignment of Listing Agreement. ©2022 Ontario Real Estate Association.

A married couple, Zubair and Munira Khan, looking to sell their home, sign a seller
representation agreement with a term of 60 days and a 90-day holdover provision with
XYZ Realty Ltd. One of the spouses is not an owner of the property. Six weeks after the
listing was signed, they have a discussion with their salesperson Jason Sewell. The Khan’s
decide they need to extend the expiry date of the agreement to have more time to sell
the property and would also like to reduce the listing price.
What should Jason tell the seller regarding altering the terms of the seller representation
agreement? Select the option with the best wording.
1 Jason: “To alter our seller representation agreement, we will want to assign the agreement.”
2 Jason: “To alter our seller representation agreement, we will want to amend the agreement.”
3 Jason: “To alter our seller representation agreement, we will want to suspend the agreement.”
4 Jason: “To alter our seller representation agreement, we will want to cancel the agreement.”

1 “The broker of record will sign the new document on behalf of the brokerage.”
2 “I will sign the new document on behalf of the brokerage.”

1 “I will need the owner’s signature and will not need the non-titled spouse’s signature.”
2 “I will need the owner’s signature and will need the non-titled spouse’s signature.”

1 “The holdover period we agreed to previously will not change.”

2 “The holdover period we agreed to previously will change.”

Relationships between a brokerage and a seller or buyer are best documented in writing
to avoid misunderstandings or confusion regarding obligations owed and services being
provided. When changes or alterations are required, a written document will be used to
confirm the revised agreement.
Identify the scenario that requires the Amendment to Listing Agreement documentation.
A seller lists his property with a brokerage and does not include the appliances in the asking price. A
1 month goes by without any offers being received so the seller decides to include the appliances in hopes
of making the property more attractive to buyers.
A seller informs his listing brokerage that his critically ill mother will be staying with him for the next two
2
weeks. During that time, he wants it to be known that he does not wish to be disturbed.
A salesperson is working with a seller who has signed a seller representation agreement with the
salesperson's brokerage. The seller wants to sell his property and move to a much larger house. The
3
seller informs the salesperson that he can no longer purchase a larger property because his
company is closing, and he is losing his job.
A salesperson is leaving his existing brokerage and transferring to a new brokerage. The salesperson is
4 currently working with a seller under a seller representation agreement. The seller would like to keep
working with the salesperson.

Introduction to Altering the Terms of a Buyer Representation Agreement
A buyer representation agreement is used to detail the terms between a brokerage and a buyer related to locating
properties that match the buyer’s needs. Should any of these terms need to be revised once the agreement has
been signed, the changes come into effect by way of the parties signing an additional document. When signed, all
other terms to the representation agreement remain in effect. A buyer who wishes to alter a current buyer
representation agreement with a specific brokerage has four options available — an amendment, a cancellation, an
assignment, or a suspension.
If circumstances are such that a buyer is pleased with the level of services provided by the salesperson or
brokerage, however, personal circumstances may require the buyer’s house search be put 'on hold' for a period of
time, the OREA form 304 'Suspension of Buyer Representation Agreement' would be used. In most situations,
depending on the nature of the request, one of the other three forms would typically be used to alter the
relationship of the buyer with the brokerage.

Additional Forms Associated with a Buyer Representation Agreement
The following screens will highlight other documents used to make changes to a buyer representation agreement,
which include the following:
• Amendment to a buyer representation agreement
• Cancellation of a buyer representation agreement
• Assignment of a buyer representation agreement
• Suspension of a buyer representation agreement

Amendment to a Buyer Representation Agreement
As a salesperson, you will make a change to one or more terms to an existing representation agreement, if both the
buyer and the brokerage agree, by creating an amendment. An amendment will likely be used to:
• Include additional services that the brokerage might provide to the buyer.
• Revise the property-type or geographic location.
• Revise the terms of any remuneration obligations of the buyer.
• Revise the expiry date of the agreement – buyer’s initials required if the new expiry date is more than six
months after the commencement date.
• Make corrections to information recorded in the agreement.
You will include the exact details of the terms that are being changed in the amendment.

The buyer’s signature is required to execute an amendment. A salesperson is usually authorized to sign and execute
an amendment on behalf of the brokerage. All other terms of the agreement that are not amended stay in effect.
Example:
A couple looking to purchase a home has a child on the waiting list for several private schools. The child gets
accepted to one school outside the geographic location described in the buyer representation agreement. As the
buyers want to alter the perimeter of their stated geographic location, the salesperson creates an amendment to
revise the relevant section of the agreement.
An example of a form that may be used as an amendment to a buyer representation agreement is shown on the
following screens.

For example, OREA Form 305 shows how you could document an amendment to a buyer representation agreement.
From OREA Form 305: Amendment to Buyer Representation Agreement. ©2022 Ontario Real Estate Association.

Cancellation of a Buyer Representation Agreement
To cancel a buyer representation agreement, signatures of the buyers and the broker of record or manager are
required to cancel the agreement. A salesperson cannot execute the cancellation on behalf of the brokerage.
There could be many reasons why the buyer and the brokerage may decide to cancel the buyer representation
agreement. The buyer may change their mind for a variety of reasons, such as changes in the mortgage qualification
process that no longer allows them to purchase a house in the area they prefer. There could also be changes to the
buyer’s employment, which would impact their purchase.
A cancellation releases both the buyer and the brokerage from the terms of the buyer representation agreement. All
activities related to locating a property that matches the buyer’s preferences cease immediately.

The holdover period agreed to in the buyer representation agreement remains in effect. If the buyer purchases a
property during the remaining term of the agreement or the holdover period that was introduced to them when the
agreement was active, they will owe a remuneration to the brokerage.
The buyers’ signatures are required to cancel a buyer representation agreement. Typically, only the broker of record
or a manager at the brokerage can execute a cancellation. Typically, a salesperson cannot cancel a buyer
representation agreement on the behalf of the brokerage.
Example:
A buyer, looking for a new home, is unable to sell her current condominium and decides not to move out for
another year, hoping that the market conditions will improve. The buyer discusses her decision with her salesperson
and they mutually decide to cancel the buyer representation agreement. The next step involves the buyer signing
the agreement, which is then approved and signed by the broker of record on behalf of the brokerage.
An example of a form that may be used as a cancellation to a buyer representation agreement is shown on the
following screens.

For example, OREA Form 301 shows how you could document a cancellation of a buyer representation agreement.
From OREA Form 301: Cancellation of Buyer Representation Agreement. ©2022 Ontario Real Estate Association.

Assignment of a Buyer Representation Agreement
The brokerage in a buyer representation agreement can assign the agreement to a new brokerage, with the consent
of the buyer. If a buyer representation agreement is assigned, it releases the original brokerage from all the
obligations of the agreement. All rights and obligations under the agreement are assigned to the new brokerage.
When assigning a buyer representation agreement, you will include details of the brokerage that is assigning the
agreement, as well as details of the brokerage the agreement will be assigned to. You will also include a declaration
from the brokerage assigning the buyer representation agreement that they release the buyer from any claims for
compensation or any other interests the brokerage might have for that buyer.
The buyer’s signature is required to assign a buyer representation agreement to a new brokerage. Typically, only a
broker of record or a manager at the current brokerage can assign a buyer representation agreement to another
brokerage. A copy of the assignment must be returned to the original brokerage before the effective date of the
assignment.

The assignment of a buyer representation agreement may occur when a salesperson transfers to another
brokerage or if the buyer wishes to cancel the current buyer representation relationship and engage in a buyer
representation relationship with another brokerage. Both the buyer and the brokerage must consent to the
assignment.
Only the current broker of record or a manager can authorize the assignment of a buyer representation
agreement to another brokerage. The buyer initiates the request by signing the appropriate document or form and
it is submitted to the brokerage to obtain the required signatures to affect the assignment of the buyer
representation agreement to a different brokerage. A copy of the agreed upon assignment is kept by the
brokerage.
An example of a form that may be used as an assignment to a buyer representation agreement is shown on the
following screens.

For example, OREA Form 302 shows how you could document an assignment of a buyer representation agreement.
From OREA Form 302: Assignment of Buyer Representation Agreement. ©2022 Ontario Real Estate Association.

Suspension of a Buyer Representation Agreement
From OREA Form 304: Suspension of Buyer Representation Agreement. ©2022 Ontario Real Estate Association.

Like the seller representation agreement, the buyer representation agreement creates obligations for both the
buyer and the brokerage. It describes the services to be provided by the brokerage. In some cases, such as a family
emergency, illness, vacation, etc., the buyer may choose to suspend the agreement and the provision of brokerage
services as an alternative to cancellation. When the Suspension of a Buyer Representation Agreement is signed by
the parties, it results in the cessation of all brokerage services for a specified period. At the end of the period, or as
otherwise agreed by the buyer and the brokerage, the brokerage services are re-started. All other terms and
conditions of the original agreement remain the same unless amended.
This allows buyers to pause the real estate search without a full cancellation. It allows buyer clients to have more
options just as seller clients do with the Suspension of a Seller Representation Agreement or Listing Agreement. The
brokerage’s obligations and activities are placed on hold without having to cancel the original agreement.

Buyer Mani Subramaniam has signed a representation agreement with XYZ Realty Ltd.
Due to an urgent need, his company informs him that he would be required to travel
overseas for a three-month period. The buyer explains this situation to his
salesperson, Jason, and asks that they put any search for a property on hold until his
return.
What should Jason tell the buyer regarding the changes needed to the buyer representation
Salesperson: “I completely understand wanting to delay looking for a home until you return. We can do
1
that by suspending our current agreement.”
2
that by amending our current agreement.”
3
that by assigning our current agreement.”
4
that by cancelling our current agreement.”

return.
1 “The broker of record will sign on behalf for the brokerage and we will require your signature as well.”
2 “I will sign on behalf for the brokerage and we will require your signature as well.”

return.
1 “The holdover period we agreed to will change after we make the required alteration to the agreement.”
“The holdover period we agreed to will not change after we make the required alteration to the
2
agreement.”

A buyer representation agreement details the terms between a brokerage and a buyer
but sometimes a term needs to be revised. This has to be done by written document to
avoid confusion or misunderstandings regarding obligations owed and services being
provided.
What scenario will require the Assignment of buyer representation agreement
documentation?
A buyer who signed a buyer representation agreement was shown quite a few properties but did not
1 make any offers. The agreement is expiring in a week and the buyer would like to keep working with the
same salesperson.
A buyer signs a buyer representation agreement and is actively looking for homes with his salesperson.
2 Unfortunately, the buyer receives a notice that his employer is downsizing, and that his job is being
eliminated. The buyer can no longer afford to buy a home.
A salesperson is working with a buyer under a buyer representation agreement. The salesperson is
3
transferring to a different brokerage and the buyer would like to continue working with the salesperson.

Introduction to Altering the Terms of Customer Service Agreements
A customer service agreement that a brokerage signs with a seller or a buyer defines the obligations, duties, and
services the brokerage owes to the seller or the buyer and also outlines the obligations of the seller or the buyer
towards the brokerage. If changes need to be made to the terms of these customer service agreements, they can be
made by using additional documents after the changes have been mutually agreed upon by the customer and the
brokerage.
As a customer service agreement for both a seller and a buyer are non-exclusive, an amendment can be used to
make any of the required changes. A situation may require the customer service agreement to be amended, such as
a change to the expiry date, the scope of services being provided by the brokerage, remuneration arrangements,
etc.
A buyer customer service agreement is little more than a disclosure of what the buyer can expect from the
brokerage. Rarely does this document need to be amended. Conversely, a seller customer service agreement
stipulates several things that can place obligations on both the seller and the brokerage. As a result, this document
can, and sometimes does, require changes.

Amending a Customer Service Agreement
The following screens will highlight information about amendments that can be made to a customer service
agreement. These amendments include:
• Amendment to a seller customer service agreement
• Amendment to a buyer customer service agreement

Amendment to a Seller Customer Service Agreement
When the seller and the brokerage mutually agree to make changes to one or more terms of the customer service
agreement, they can revise the terms by creating an amendment.
These changes could pertain to:

● The services that the brokerage will provide to the seller
● Changes to the terms of remuneration
● Changes to the expiry date of the agreement; the seller’s initials will be required if the new expiry date is more
than six months after the commencement date
● Corrections to information recorded in the agreement
The seller must sign the amendment. The signature of the non-titled spouse is also obtained to give spousal
consent, if applicable. Typically, salesperson can sign an amendment on behalf of the brokerage. All the other terms
of the agreement not indicated on the amendment remain in effect.
Example:
A seller, who signed a seller customer service agreement with a brokerage, did not permit the brokerage to place a
“Sold” sign on the property. The seller has now sold the property to the buyer introduced by the brokerage, and the
seller has agreed to allow a sign. This change in the terms can be documented through an amendment to the seller
customer service agreement.
An example of a form that may be used as an amendment to a seller customer service agreement is shown on the
following screens.

For example, OREA Form 205 shows how you could document an amendment to a seller customer service
agreement.
From OREA Form 205: Amendment to Seller Customer Service Agreement. ©2022 Ontario Real Estate Association.

Amendment to a Buyer Customer Service Agreement
When the buyer and the brokerage mutually agree to make changes to one or more terms of the agreement, they
can execute the changes through an amendment.
These changes could pertain to:

● Additional services that the brokerage might provide to the buyer
● The buyer agreeing to pay remuneration to the brokerage for their service during the term of the
agreement
● Changes to the expiry date of the agreement; buyer’s initials will be required if the new expiry date is more
than six months after the commencement date
● Corrections to information recorded in the agreement
The buyer’s signature is required to execute an amendment. Typically, a salesperson can sign and execute an
amendment on behalf of the brokerage. All the other terms of the agreement that aren’t amended remain in effect.

Example:
Under the agreement, a buyer is not obligated to pay remuneration to the brokerage by signing a customer service
agreement. During the course of the agreement, the buyer is pleased with the services being provided by the
salesperson and understands the importance of having guidance in a real estate purchase. A private seller’s home
becomes available, which appears to meet the buyer’s criteria. The seller agrees the salesperson can show the
property but is not willing to pay a remuneration to the buyer’s brokerage. The salesperson approaches the buyer,
and the buyer agrees to pay the brokerage a remuneration if the property is purchased. This is documented using
an amendment to the buyer customer service agreement.
An example of a form that may be used as an amendment to a buyer customer service agreement is shown on the
following screens.

For example, OREA Form 315 shows how you could document an amendment to a buyer customer service
agreement.
From OREA Form 315: Amendment to Buyer Customer Service Agreement. ©2022 Ontario Real Estate Association.

From OREA Form 240: Amendment to Listing Agreement. ©2022 Ontario Real Estate Association.

Example of an Amendment to the Listing Agreement:
In the previous screens, you saw how OREA Form 240 looks and the purpose it serves. Let’s now consider how it is
filled out.
In one of the Decision Points above, you saw how Zubair and Munira Khan, who were looking to sell their home, sign
a seller representation agreement with XYZ Realty Ltd., located at Lot 06, Plan 92M-4000, City of Anycity, Region of
Anyregion. Munira Khan is not a registered owner of the property. We also learnt how a month after the listing is
signed, they have a discussion with their salesperson, Jason, telling him that they would like to reduce the listing
price. Let’s see how their agreement may look after an amendment is added. You will now see a reproduced
example of an amendment to the listing agreement using OREA Form 240, which Jason would have filled for his
clients, given their individual requirements.

From OREA Form 301: Cancellation of Buyer Representation Agreement. ©2022 Ontario Real Estate Association.

Example of a Cancellation to the Buyer Representation Agreement
In the earlier screens, you saw how OREA Form 301 looks and the purpose it serves. Now, let’s consider how it is
filled out.
In one of the Decision Points above, you saw that buyer Mani Subramaniam had signed a buyer representation
agreement with XYZ Realty Ltd., but was looking to cancel the agreement due to an urgent personal matter. We have
reproduced an example of cancellation of a buyer representation agreement using OREA Form 301 that Jason would
have filled for his client, given his specific situation.

Alter terms of a seller A seller representation agreement can be amended, cancelled, suspended, or
assigned. A suspension or cancellation of the agreement typically must be
representation
signed by the seller and the broker of record or manager.
agreement
An amendment is used when specific terms in the agreement need to be
changed. When the activities related to the selling of a property need to be
stopped for some time, a suspension can be used. If these activities are to be
stopped altogether, a cancellation is used. An amendment can be signed by the
seller and a representative of the brokerage, usually the listing salesperson.
An assignment is used if the agreement is to be moved from one brokerage to

another. An assignment must be signed by the seller, the listing brokerage,
typically the broker of record or manager, and the receiving brokerage’s broker
of record/manager. Copies must be given to the seller immediately upon signing.
Alter terms of a buyer A buyer representation agreement can be amended, cancelled, assigned, or
suspended. Situations where each type of change is required for a buyer
representation
representation agreement are similar to those when changes are made to a
agreement seller representation agreement.
Alter terms of customer As with representation agreements, customer service agreements are amended
when any terms in those agreements need to be changed. Customer service
service agreements
agreements differ from representation agreements in that, usually, they are only
amended. As they are non-exclusive, meaning the customer is free to sign
another agreement with another brokerage without repercussions, these
agreements are often left to expire rather than be cancelled.

Lesson 7: Salesperson’s Obligations Regarding Services Provided
This lesson details your obligations as a salesperson regarding the services you provide to a seller or a buyer,
introduces leading practices when documenting a relationship, and describes how to avoid mistakes and
misunderstandings.

When documenting a relationship with a seller or a buyer, it is important for you, as a salesperson, to ensure the
services being provided are in compliance with REBBA and meet the needs of the client or the customer. As a
salesperson, you are expected to have full understanding of your obligations to reduce any risk for yourself and
your brokerage. This lesson will identify mistakes that could occur while documenting relationships and the leading
practices to avoid them.

• Identify a brokerage’s obligations to maintain business records.
• Identify a salesperson’s obligations regarding document retention.
• Identify a salesperson’s obligations regarding inducements made to a seller or a buyer.
• Identify leading practices to avoid common mistakes made while documenting relationships.

Brokerage’s Obligations to Maintain Business Records

A brokerage has certain regulatory obligations for maintaining business records. These include:
• Retaining all documents and records created during the course of a trade for at least six years: If a brokerage
has files relating to a contentious trade (which may result in a lawsuit or other legal action), the brokerage
should store those documents indefinitely. These could include any relationship agreements that are created
along with schedules or any changes that are made to the terms of these agreements.
• Maintaining records for other activities required to conduct the brokerage’s business: These could include
documents such as records of trust money transactions, monthly reconciliations, records of trust property,
accounting records, employee records, etc.
• Retaining documents at the appropriate location: For a brokerage that does not have any branch office, all
documents should be retained at the brokerage’s main office. If the brokerage does have a branch office,
records are retained at the location specified by the Registrar or, if the Registrar hasn’t specified a location, at
the main office of the brokerage. If a brokerage does operate out of branch offices and records are to be kept

at the main office, then all documents created at a branch office should, as soon as possible, be moved to the
main office.
Salesperson’s Obligations Regarding Documentation
As a salesperson, you typically will be the individual who is directly involved with many of the documents associated
with a trade. The requirement to maintain records will extend to you. As such, you should ensure that all documents
created or obtained are submitted to the brokerage in a timely manner for appropriate recordkeeping.
The documentation required from a salesperson, in addition to representation agreements and customer service
agreements, may include:
• Surveys or other information related to the listing
• Identification verification of the seller or the buyer as required by FINTRAC
• Disclosures from sellers about any issues with their property, repairs conducted on the property, etc.
Example: Demonstrating Compliance with a Salesperson’s Obligations
A salesperson has an evening appointment with a seller to list their property for sale. The documents obtained by
the salesperson during the listing appointment include a survey, a seller disclosure statement, and copies of receipts
from recent repairs completed in the basement. The seller representation agreement, verification of the seller’s
identification, and the associated listing document are securely retained by the salesperson when the appointment
is completed. The following morning, the salesperson submits all documents to their brokerage to process the
listing.

According to REBBA, a brokerage and a salesperson are obligated to maintain and retain
documents.
Which of the following actions would be appropriate for a brokerage and salesperson to take
to meet their obligations regarding maintaining records and retaining documents?
A brokerage leases a portion of a warehouse for storage, which is located close to the main office
1
because their current location does not have sufficient space.
A salesperson works in a branch office and travels to the main office every week. With each visit to the
2 main office, he submits to the brokerage, all the original documents made during the real estate trading
in that week.
A salesperson registered with XYZ Realty Ltd. has listed a builder’s new home and works on site in a
3
model home. The salesperson securely stores all documents related to trades in the model home.
A salesperson lists a seller’s property for sale that was recently repaired. The seller provides the
4 salesperson copies of the documents detailing the repairs. The salesperson attaches the document to
the seller representation agreement and submits it to the brokerage for retention.

Salesperson’s Obligations Regarding Inducements Made to a Seller or a Buyer

(Section 25 of O. Reg. 567/05)
REBBA details requirements concerning promises made to a seller or a buyer as an inducement to buy or sell real
estate. Certain promises must be detailed in a written contract with the seller or the buyer to ensure the person
making the promise complies and the party is not misled. This promise is a personal promise from the salesperson
and does not obligate the brokerage. As a salesperson, this requires you to document and sign a contract detailing
the specific aspects of the promise you are making to the seller or the buyer. As a leading practice, you should
discuss full details with your brokerage prior to making any such promises.
Inducements to Sell
Promises include that the salesperson or any other person will:

• Buy any of the seller’s real estate.
• Acquire a mortgage, an extension of a mortgage, a lease, and/or an extension of a lease for the seller.
• Buy or sell a mortgage or acquire a loan for the seller.
Inducements to Buy
Promises include that the salesperson or any other person will:

• Sell, lease, or exchange the real estate.
• Buy or sell any of the buyer’s real estate.
• Acquire a mortgage, an extension of a mortgage, a lease, and/or an extension of a lease for the buyer.
• Buy or sell a mortgage or acquire a loan for the buyer.

These types of promises must be made in writing and include full details so the seller or the buyer fully understands
the rights and obligations of the person making the promise:
• Promises that the salesperson or any other person will buy, sell, or lease said property, or arrange to finance
it. For example, a salesperson, when listing a property, states that if the property does not sell within a
specified period of time for a price acceptable to the buyer then the listing salesperson will buy the property.
The details of this offering must be thoroughly documented and signed by the salesperson to avoid any
confusion that may arise later in the relationship.
• Promises that the salesperson or another person will buy or sell any of the buyer’s real estate, or procure a
mortgage, an extension of a mortgage, a lease, an extension of a lease, or buy or sell a mortgage, or procure a
loan for them. For example, a salesperson doing a presentation to a potential buyer client states that through
his contacts in the mortgage brokerage industry he can secure a mortgage for the buyer at rates below
market. Again, the representation or “inducement” must be thoroughly documented and signed by the
salesperson to avoid later confusion.
• Promises that the salesperson or another person will buy any of the seller’s real estate, or procure a
mortgage, an extension of a mortgage, a lease, an extension of a lease, or buy or sell a mortgage, or procure a
loan for them. For example, an agreement of purchase and sale is presented to a seller and a component of
the agreement requires that the seller take back a second mortgage on the property at current market rates.
The listing salesperson, in an attempt to assuage the seller’s concerns, states that he will arrange for someone
to buy the mortgage after the transaction closes. Again, this is considered an inducement and must therefore
be committed to writing and signed by the salesperson.

A salesperson is permitted to make promises to a seller or a buyer to induce them to

sell, buy, or lease a property. However, GEN, Sec. 25 of the Real Estate and Business
Brokers Act requires that certain promises cannot be made unless the salesperson enters
into a written contract with the person to whom the promise is made that obligates the
salesperson, to ensure that the promise is complied with.
Which of the following promises would require the written contract as specified under the
Real Estate and Business Brokers Act?
There are five options. There are multiple correct answers.
A salesperson promises a buyer that if the buyer purchases a property without first selling his existing
1
property, the salesperson will purchase the buyer’s property himself.
A salesperson promises a buyer that the in-house mortgage broker will guarantee a mortgage interest
2
rate of at least one percentage point below the market rate
A salesperson promises a buyer that if an income property is purchased through the brokerage, the
3
salesperson will find the buyer a tenant who will pay $2,000 a month.
A salesperson promises a seller that if the seller lists his property with the salesperson’s brokerage, the
4
salesperson will pay to have the house staged.
A salesperson promises a buyer that he will pay for a property inspection if the buyer purchases a
5
property through him.

Mistakes a Salesperson Should Avoid While Documenting Relationships
While documenting relationships, it is important for you, as a salesperson, to be aware of potential mistakes, so you
can avoid these. When providing services to sellers and buyers, understanding problematic areas can help ensure you
are conscientious, competent, and providing the highest quality service. The mistakes highlighted here address
various aspects of documenting a relationship.
The following five sections contain information about the mistakes to avoid when documenting relationships.
While navigating through the online module, click the KMS button in the Module Resources for tools and information
on this topic.
Documentation errors • Failing to carefully obtain, read, and analyze source documents. Examples
when working with a seller include reviewing a survey, maintenance
records, tax bill, deed, lawyer’s reporting letter, and other documents a
salesperson can refer to in order to obtain information that would be part
of a listing agreement.
• Transposing information from source materials to the representation
agreement.
• Making errors with regard to documenting specifics of the land, property,
and defects (for example, lot dimensions are misstated, easements and
local improvement charges are overlooked).
• Failing to ensure that all parties on title appear and sign the listing
agreement or any other document.
• Failing to enquire about the requirement to obtain spousal consent.
Incorrect words, • Making statements to a seller or a buyer with regard to a transaction that
advance opinions or promote comparisons, and using exaggerations such
statements, and
as “best property,” “greatest return,” etc., and not stating only the facts.
predictions

• Making predictions or giving absolute assurances to a seller, a buyer, or in
advertising material through words such as “guarantee,” “great
investment.”
• Failing to use operative words carefully (“can,” “will,” “might,” “must,” etc.).
Statements such as, “I can get you the highest price possible” or “you will
get many showings on your property immediately after the sign is
installed” should be avoided.
Misrepresentation • Failing to seek confirmation that the client or customer fully understands
what is being shared with them with regards to the services provided by
the brokerage, the obligations of the brokerage, and the obligations the
client or the customer owes to the brokerage.
• Failing to defer to other professionals, such as a home inspector, a lawyer,
or an insurance broker when appropriate.
• Exceeding the scope of authority granted by the client.
• Not properly addressing issues during negotiations with sellers and
buyers. Examples include failing to address an agreement of purchase and
sale accurately during offer negotiations, disclosing confidential
information to other interested parties when there are multiple buyers
offering on the property.
Lack of due diligence • Failing to present all aspects of a property to a buyer in a diligent manner.
• Failing to market a property in a diligent manner for a seller client.
• Failing to diligently pursue all suitable properties on behalf of a buyer
client.
Breach of duties, • Misrepresenting or failing to disclose material information to the client.
• Breaching duties as specified in the agreement. Examples include failing to
obligations, and
provide all the services promised and documented in the agreement, such
disclosure requirements as reducing the marketing exposure of the property or cancelling any open
houses promised to the seller.
• Failing to carry out obligations in a conscientious and competent manner.
• Failing to discuss representation, customer service, and the possibility of
multiple representations with sellers and buyers at the earliest
opportunity.

• Failing to provide a disclosure, or providing an incomplete disclosure, to
clients and customers as required by REBBA. For example, a salesperson
receives a referral fee from a mortgage broker and fails to disclose the
amount as a financial benefit to a client as required by Subsection 18(4) of
the Code of Ethics.
• Failing to recognize conflicts of interest that may arise when acquiring
property for personal use and not making complete required disclosures.
• Failing to disclose additional remuneration obtained (for example, finder’s
fees) to the client.

Leading Practices in Documenting Relationships
As a salesperson, you must keep in mind several leading practices that can be followed to avoid making mistakes
when documenting a relationship. By adhering to legislated requirements and following leading practices, you can
avoid making errors that could result in liability and a tarnished reputation for you and your brokerage.
The following four sections contain information about the leading practices to remember when documenting
relationships.
Reviewing • Corroborating key information included in representation agreements and

insisting on further investigation where necessary. For example, when listing a
agreements
property for sale, verify the ownership using a source document such as the
transfer/deed. Carefully reviewing a representation or customer service
agreement to ensure the party fully understands the terms and obligations.
Research and • Interviewing every client or customer carefully and understanding and analyzing
their needs and wants.
analysis
• Selecting properties based on the client’s preferences and financial ability and
knowing all comparable sales.
• Compiling data on neighbourhood trends, features/benefits of living in the
particular community, school locations, market reports, and press releases
available to the brokerage.
• Analyzing properties and consulting with other professionals, as needed, to
understand every aspect of the information available about a property. For
example, when dealing with a property that has a basement apartment, consult
with the building department or a home inspector for advice on how to comply
with the various obligations and requirements associated with these.
• Helping the client make a rational decision after the preliminary excitement of
seeing a property or receiving an offer.

Clarity and honesty • Putting well-worded conditions in every offer and ensuring that clauses that
include conditions are drafted correctly and are easy to understand
• Being honest and forthright with the seller and the buyer at all times
• Promoting and protecting the client’s best interests at all times
Timely Advice • Advising a client when they need to conduct further investigation into a
property. For example, a client wants to put an addition in the rear of a home –
the prudent option would be to find out if this would be allowed under the
zoning provisions and that a building permit would be available before they
purchase the property.
• Helping the client negotiate an offer based on current conditions in the
marketplace.

Obligation of a brokerage and It is important to remember that a brokerage is obligated to retain

a salesperson to maintain documents related to trades in real estate and other administrative
documents in accordance with REBBA.
business records and retain
documents
The brokerage’s regulatory obligation to maintain business records include:
• Retaining all documents and records created during the course of a
trade for at least six years
• Maintaining records for other activities required to conduct the
brokerage’s business
• Retaining documents at the appropriate location
As a salesperson, you should ensure your activities do not cause the

brokerage to be in non-compliance. Ensuring you bring all the documents
related to any aspect of your relationship with a seller or a buyer to the
brokerage in a timely manner is required. Proper document storage and
retention is critical to keeping confidential information secure.
Obligation to not make certain As a salesperson, certain promises that are made to a seller or a buyer must
promises as inducements to a be in writing. For example, you must not make promises to a seller or a
buyer to induce them to sell or buy a property, such as promising to resell a
seller or a buyer to sell or buy
property, obtaining a mortgage, or guaranteeing a tenant. These promises
real estate
must be documented in a written contract with the seller or the buyer to
ensure the parties understand and agree to the terms of the promise.

Mistakes a salesperson should When documenting relationships, it is important for you, as a salesperson, to
avoid and leading practices avoid mistakes, such as exceeding the authority granted by the agreement,
failing to carefully read source documents, failing to make sure the client or
they can follow while
customer understands everything explained to them and making incomplete
documenting relationships
disclosures to sellers and buyers, etc.
As a salesperson, you should also be aware of leading practices, such as

carefully reviewing every aspect of an agreement with a seller or a buyer,
carefully interviewing a seller or a buyer, and analyzing their needs, providing
competent advice after analyzing market data, being honest and forthright at
all times, etc. Recognizing the areas where mistakes can sometimes happen
and working diligently to provide professional service helps to ensure that
you perform your day-to-day activities in full compliance with REBBA.

Lesson 8: Summary Practice Activities
This lesson includes scenarios and activities that expand upon the differences between the various agreements
discussed in the module.

It is important for you, as a salesperson, to understand the different types of agreements detailed throughout the
module and be able to explain the content in an agreement to a seller or a buyer. As a brokerage’s relationship with
a seller or a buyer can be either expressed or implied, documenting the relationship early in your interactions with a
seller or a buyer is important. This leading practice will reduce misunderstandings or confusion regarding the
services being provided by the brokerage and the obligations of the other party.
As the obligations owed can differ significantly with the relationship being created, distinct agreements are used to
document the relationship between a brokerage and a seller or a buyer. If a client relationship is being created, a
representation agreement is used. If a customer relationship is created, a customer service agreement is used. The
key terms used here reflect the type of relationship. As a client, the brokerage represents the seller or the buyer. As
a customer, the brokerage provides services only.
Through decision points, this lesson will highlight key differences between the terms and provisions included in a
seller representation agreement and a seller customer service agreement, and the key differences between the
terms and provisions included in a buyer representation agreement and a buyer customer service agreement.
Understanding the specifics of each and how they differ will reinforce the fundamentals of agency and the
obligations and duties stemming from that.

A salesperson is meeting a first-time seller to discuss how the salesperson’s brokerage can help the seller in the
marketing of their property. The salesperson explains all the service options available to the seller. The seller wants
to know more about the difference between a seller representation agreement and a seller customer service
agreement and how the obligations of the seller and the salesperson’s brokerage will change under the different
agreements.

A seller asks their salesperson to highlight the differences between a seller

representation agreement and a seller customer service agreement.
Which of the following differences are correct?
As a seller customer service agreement is non-exclusive, there is no requirement to obtain the seller’s
1
initials if the duration of the agreement exceeds six months.
A seller customer service agreement does not include the listing price as the property is not being listed
2 and marketed by the brokerage. A seller representation agreement must include a listing price as this is
a key component of ensuring the listing is complete and accurate.
A seller customer service agreement does not include the seller’s warranty that they do not have a listing
3 agreement signed with another brokerage, as a seller customer service agreement is a non-exclusive
agreement. A seller representation agreement includes that warranty.
A seller customer service agreement includes details about the buyer interested in the property or to be
4
introduced to the property. A seller representation agreement does not include any buyer(s) details.

A seller asks the salesperson to highlight the difference between a seller representation
agreement and a seller customer service agreement to understand how the services
provided to the seller, and the obligations of the brokerage and the seller will change
accordingly. Additional provisions included in these agreements related to defining the
duties, obligations, and services provided, differ in a few key ways between the two types
of agreements.
Mentioned below are explanations for a few provisions that are included in either a Listing
Agreement - Seller Representation Agreement - Authority to Offer for Sale (Seller
Representation Agreement) or a Seller Customer Service Agreement - Commission Agreement
for Property (Seller Customer Service Agreement). For each provision, choose the
corresponding agreement.
A provision that specifies the seller’s obligations for remuneration to the brokerage and implies that if
1 the seller sells their property to a different buyer, they will not be obligated to pay remuneration to the
brokerage.
A provision that mentions that any enquiries the seller receives for their property during the term of the
2
agreement, from any source whatsoever, is to be disclosed to the brokerage.
A provision allowing the seller to select whether other brokerages can contact the seller if the agreement
3
expires and the seller’s property is still unsold.
A specific provision to obtain the seller’s consent to place a “Sold” sign in the seller’s front yard denoting
4
the brokerage sold their property, but no provision for a “For Sale” sign.

The salesperson explains the difference in the terms of, and parties to, an agreement and the additional provisions
included in an agreement for a seller representation agreement and a seller customer service agreement.
These differences typically include non-exclusivity, the buyer’s details, the listing price, remuneration, referral of
enquiries, use and distribution of information, and sold signs. A salesperson should know these differences; why
they exist, and how they would affect the relationship of the brokerage with the seller.

A salesperson is meeting a first-time buyer to discuss how the salesperson’s brokerage can help the buyer find a
home that matches their requirements. The salesperson explains all the service options available to the buyer. The
buyer wants to know more about the difference between a buyer representation agreement and a buyer customer
service agreement and how the obligations of the buyer and the salesperson’s brokerage will change from one type
of agreement to the other.

A buyer asks his salesperson to highlight the similarities between a buyer representation
agreement and a buyer customer service agreement to learn how the service provided to
him under each agreement will differ, and the specific obligations that will apply to him
and the brokerage.
Which of the following statements about buyer representation agreements or buyer
customer service agreements are correct?
If the duration of the representation agreement or the customer service agreement exceeds six months,
1
the buyer must show consent by initialing the agreement.
Both types of agreements include information about the location and the type of property the buyer is
2
interested in.
A buyer representation agreement and a buyer customer service agreement are exclusive with one
3
brokerage.
Both types of agreements include details regarding the buyer’s obligation to pay a remuneration to
4
the brokerage under certain circumstances.

A buyer asks the salesperson to highlight the difference between a buyer representation
agreement and a buyer customer service agreement, as they want to know how the
services provided to them and how the obligations of the brokerage and the buyer will
change under the two agreement. The additional provisions included in these
agreements defining the duties, obligations, and services provided, differ in a few key
ways between the two types of agreements.
Select the provisions that are included in a buyer customer service agreement.
A provision detailing the remuneration obligations of the buyer when the brokerage finds a property
1
that matches their requirements and the buyer agrees to purchase it.
2 A provision explaining the limited duties the brokerage owes the buyer as part of the agreement.
An additional document detailing the remuneration obligations of a buyer in case the brokerage finds
3
a property that matches their requirements and the buyer agrees to buy it.
A provision that states that, while the agreement is active, if a buyer locates a property that matches
4
their interest, whatever the source may be, they should inform the brokerage about it.

The salesperson in explaining the differences between a buyer representation agreement and a buyer customer
service agreement outlines the additional provisions included in the buyer representation agreement; for example,
referral of properties, remuneration, representation, and multiple representation.
A salesperson should know and be able to explain the differences between these two types of buyer agreements
and how they would affect the buyers’ relationship with the brokerage.

You have tested your understanding of key differences between a seller representation agreement and a seller
customer service agreement, as well as between a buyer representation agreement and a buyer customer service
agreement.
The differences when documenting a relationship should be fully understood as there are key components of each
that must be understood by a seller or a buyer before choosing between representation and customer service.
When explaining the various service options and documenting your brokerage’s relationship with the seller or the
buyer, it is important for you to know why these differences exist and how they change the services you will provide
to your seller or your buyer. It is also important for you to know and be able to explain your duties and obligations
towards the seller or the buyer and ensure they understand their obligations to the brokerage.

Module Summary | Page 1 of 4
Module Summary
This lesson contains a summary of the entire module and a list of helpful resources available in the Knowledge
Management System.

Congratulations, you have completed this module!
This lesson will present a summary of Learning Objectives and a list of helpful resources that you can search for in
the Knowledge Management System.

There are seven sections on this page with a summary of the key topics that were discussed in this module.
Registrant, Seller, and This lesson details the regulatory obligations of a registrant regarding documenting a
Buyer Obligations relationship, remuneration, and other financial disclosures.
The lesson also explains the legal obligations of the seller and the buyer with respect to
indemnification and remuneration to the brokerage.
When a salesperson understands their obligations as well as those of the client or

customer, it reduces the risk of unintentionally misleading a consumer.
Completion of this lesson has enabled you to:
• Identify the regulatory obligations of a registrant regarding documenting a
relationship with a seller and a buyer.
• Identify the regulatory obligations of a registrant regarding remuneration and
other financial disclosures with a seller and a buyer.
• Identify the regulatory obligations of a registrant regarding disclosure
requirements relating to relationships with a seller and a buyer.
• Identify legal obligations of a seller.
• Identify legal obligations of a buyer.
The Seller This lesson introduces the learner to the seller representation agreement that is used
Representation to document the relationship between a seller client and a listing brokerage.
The lesson details the types of listings, terms of, and parties to, the agreement,
Agreement
additional information typically included in the agreement, and signing and initialling
requirements for the agreement.
Completing a seller representation agreement sets expectations for the seller client and
establishes a commitment between both parties.

• Identify the types of listings.

• Describe the type of information required to identify the terms of, and parties to,
a seller representation agreement.
• Explain what a seller typically acknowledges and consents to in a seller
• Explain what a seller typically warrants in a seller representation agreement.
• Explain how to document remuneration in a seller representation agreement.
• Explain the additional information typically included in a seller representation
agreement.
• Explain the signing and initialling requirements of a seller representation
agreement.
• Complete the information required to identify the terms of, and parties to, a
• Complete the additional information typically required in a seller representation
agreement.
• Complete the signing and initialling requirements of a seller representation
agreement.
The Buyer This lesson introduces the learner to the buyer representation agreement used to
Representation document the relationship between a buyer client and a brokerage.
The lesson details the terms of, and parties to, the agreement, additional information
Agreement
typically included in the agreement, and signing and initialling requirements for the
agreement.
Completing a buyer representation agreement sets expectations for the buyer client
and establishes a commitment between both parties.
a buyer representation agreement.
• Explain the additional information typically included in a buyer representation
agreement.
• Explain the signing and initialling requirements of a buyer representation
agreement.
buyer representation agreement.

• Complete the additional information typically required in a buyer representation
agreement.
• Complete the signing and initialling requirements of a buyer representation
agreement.
The Seller Customer This lesson introduces the seller customer service agreement used to document the
Service Agreement relationship between a seller customer and a brokerage.
The lesson details the terms of, and parties to, the agreement, additional information
agreement.
Completing a seller customer service agreement sets expectations for the seller
customer and establishes a commitment between both parties.

a seller customer service agreement.
• Explain the additional information typically included in a seller customer service
agreement.
• Explain the signing and initialling requirements of a seller customer service
agreement.
• Complete the information required to identify the terms of, and parties to, a seller
customer service agreement.
• Complete the additional information typically included in a seller customer service
agreement.
• Complete the signing and initialling requirements of a seller customer service
agreement.
The Buyer Customer This lesson introduces the buyer customer service agreement used to document the
Service Agreement relationship between a buyer customer and a brokerage.
The lesson explains the terms of, and parties to, the agreement, additional information
agreement.

Completing a buyer customer service agreement sets expectations for the buyer
customer and establishes a commitment between both parties.
a buyer customer service agreement.
• Explain the additional information typically included in a buyer customer service
agreement.
• Explain the signing and initialling requirements of a buyer customer service
agreement.
buyer customer service agreement.
• Complete the additional information typically included in a buyer customer
service agreement.
• Complete the signing and initialling requirements of a buyer customer service
agreement.
Altering the Terms of This lesson introduces and explains how agreements can be altered and how those
a Representation or alterations are documented.
Customer Service A seller representation agreement can be amended, suspended, cancelled, or assigned.
Agreement A buyer representation agreement can be amended, cancelled, or assigned. Customer
service agreements are usually only amended.
It is important for a salesperson to know which documents can be altered, and in what
ways and why, to take appropriate action when necessary and explain the same to the
seller or the buyer.

• Identify additional documents associated with a seller representation agreement.
• Identify additional documents associated with a buyer representation agreement.
• Identify additional documents associated with a customer service agreement.

Salesperson’s This lesson discusses the obligations of the salesperson while providing services to the
Obligations client or the customer.
Regarding Services The salesperson, along with the brokerage, has the obligation to accurately document
Provided the agreements and to be diligent with retaining and maintaining records from the
transaction.
The salesperson also has the obligation to refrain from making any promises to the
seller or the buyer that may be viewed as inducements for them to buy, sell, or lease a
property. All promises must be in writing to ensure that the salesperson is bound by
the agreement.
The lesson also explains some common mistakes salespersons make while
documenting relationships and highlights leading practices for a salesperson to follow
to avoid these mistakes.

• Identify a brokerage's obligations to maintain business records.
• Identify a salesperson’s obligations regarding document retention.
• Identify a salesperson's obligations regarding inducements made to a seller or a
buyer.
• Identify leading practices to avoid mistakes made while documenting
relationships.

Module Resources
There are five helpful resources related to this module that you can search for in the Knowledge Management
System.
1. Seller Contractual Obligations Regarding Remuneration: This table provides a list of remuneration obligations
owed by a seller to the listing brokerage under specific circumstances. A salesperson can use this job aid to
understand and better communicate to a seller the various legal obligations a seller has regarding
remuneration.
2. Types of Listings: This job aid provides a salesperson with a description of the three different types of listing
agreements available and their key features. When a seller decides to list their property for sale, they choose
the listing option that best suits their needs. A salesperson can use this job aid to understand how each listing
type differs from the other to be able to guide their sellers correctly.
3. The Holdover Period - FAQ: This Frequently Asked Questions (FAQs) job aid provides a quick refresher on the
principal features of the holdover period within the holdover clause. A brokerage needs to know whether
remuneration is due to them if a sale or a purchase happens during the holdover period. A salesperson can
use it to understand and explain the holdover provision to sellers and buyers before they sign a
4. Buyer Client Expectations of Brokerages: This list provides general guidelines regarding the responsibilities
owed to a buyer by a salesperson and the brokerage under the buyer representation agreement. A
salesperson can use this job aid to help them understand their various obligations and duties towards their
buyer client when a buyer client signs a representation agreement.
5. Completing Representation and Customer Service Agreements: This table provides the DOs and DON’Ts a
salesperson must observe while completing representation agreements and customer service agreements. A
salesperson can use this job aid to ensure accuracy while documenting a legal relationship.
While navigating through the online module, click the KMS button for tools and information on this topic.

Humber Course Material

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Humber Course Material

Uploaded by

Copyright:

Available Formats

V7.

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

Number of Lessons 9 Lessons

Lesson Number Lesson Name

©2019 Real Estate Council of Ontario

Lesson 1: Registrant, Seller, and Buyer Obligations

©2019 Real Estate Council of Ontario

Upon completion of this lesson, you will be able to:

©2019 Real Estate Council of Ontario

Introduction to the Regulatory Obligations of a Registrant

©2019 Real Estate Council of Ontario

Registrant’s Obligations: Information before Agreements, Section 10 of the Code

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

Registrant’s Obligations: Information before Agreements, Section 10 of the Code

The following screens explore other obligations under the Code.

©2019 Real Estate Council of Ontario

Regulatory Obligations Regarding Documenting a Relationship with a Seller and a

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

Registrant’s Obligations Regarding Remuneration and Financial Disclosures

©2019 Real Estate Council of Ontario

Failing to properly document and discuss the client’s or the customer’s

Obligations regarding As previously detailed, REBBA contains various restrictions relating to

If the remuneration payable is a percentage of the sale price, the

Remuneration cannot be based on the difference between the listing

Many variations of remuneration calculations exist, with a percentage

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

Registrant’s Obligations Regarding Remuneration and Financial Disclosures

Remuneration is negotiated with each seller and buyer and could be

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

Disclosure Requirements Relating to Relationships

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

Introduction to the Legal Obligations of a Seller and a Buyer

©2019 Real Estate Council of Ontario

Legal Obligations of a Seller and a Buyer

Example 1: Seller Obligation

Example 2: Seller Obligation

©2019 Real Estate Council of Ontario

Example 3: Buyer Obligation

Remuneration As you learned earlier, a seller or a buyer (the principal) is obligated to

Example 1: Seller Obligation

©2019 Real Estate Council of Ontario

Example 2: Buyer Obligation

The seller is obligated to compensate the brokerage if they bring the

Additional obligations Additional obligations of a seller or a buyer may be included in an

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario

©2019 Real Estate Council of Ontario