Buying or selling a home in Ontario involves legal documents, timelines, and decisions that can have long-term financial consequences. One key document you will always see at the beginning of the process is the RECO Information Guide, which is essential for understanding your rights, obligations, and what to expect when working with a REALTOR®.
Rather than asking you to read the entire guideline line by line, the summary below explains the key parts in clear language.
Why work with a REALTOR®?
Building trust in your REALTOR® helps buyers and sellers feel valued and confident in the process.
Working with a REALTOR® means more than accessing listings or handling paperwork. In Ontario, brokerages and their agents owe specific legal duties to protect your interests, including loyalty, confidentiality, and full disclosure.
As a client, you are entitled to:
Loyalty. Your best interests must come first.
Confidentiality. Your personal information, your motivation, and your price limits must remain private, even after the transaction closes.
Full disclosure. Any information that could affect your decisions must be shared with you.
Protection from conflicts of interest. Any dispute must be disclosed and appropriately addressed before work continues.
For sellers, professional representation includes advice on pricing, marketing, showings, offers, negotiations, and managing the transaction to closing.
For buyers, professional representation includes helping find suitable homes, checking zoning and permitted uses, developing a strategy, preparing offers, negotiating, and managing the transaction through closing.
What happens if you do not use an agent?
A buyer or seller who does not work with a brokerage is called a self-represented party.
When a self-represented party speaks to the agent who represents the other side, that agent has a legal duty to act only in the best interest of their own client. Any information shared, including price limits, motivation, or timing, must be passed along to that client.
The agent on the other side cannot provide advice, strategy, or guidance. A self-represented buyer or seller must determine value, negotiate terms, manage risks, and prepare documents without professional representation.
The representation agreement
A client relationship begins with a written representation agreement between the client and the brokerage. That agreement is the service contract.
The agreement sets out:
The services the brokerage will provide
How fees are calculated and paid
How long does the agreement last?
The holdover period, which can require payment of commission if a transaction occurs shortly after the agreement expires
The purpose of this agreement is to clearly define the relationship, the services being provided, and the responsibilities on both sides.
Multiple representation. An important rule.
Multiple representation occurs when a single brokerage represents both the buyer and the seller in a single transaction.
Multiple representation occurs only if both parties agree in writing before the transaction begins. This written consent must be obtained before offers are made or negotiations start, ensuring transparency and informed agreement.
If either party does not agree, the brokerage must arrange an alternative solution, such as referring one party to another representative or brokerage.
When multiple representations exist, the agent must act neutrally and cannot provide strategic advice to either side on price or negotiation.
If you ever have an issue with your REALTOR®
Most concerns arise from misunderstandings and can be resolved quickly.
The first step should always be to speak with the REALTOR® or the brokerage. The Broker of Record is responsible for standards within the brokerage and often resolves issues at that level.
If a concern cannot be resolved, buyers and sellers have the right to contact the Real Estate Council of Ontario (RECO). RECO regulates REALTORS® and brokerages in Ontario and reviews complaints about conduct and compliance with the rules. No brokerage is allowed to prevent a client from contacting RECO or require a client to waive that right.
The bottom line
Ontario’s real estate rules are designed to protect you and make the process transparent, helping you feel reassured and confident in your decisions.
Questions are always welcome. Having support and guidance helps you feel encouraged and confident to make informed decisions.
Frequently Asked Questions
Do I have to sign a representation agreement?
A representation agreement is required for full service, advice, and negotiation. Without one, a REALTOR® cannot act on your behalf.
Can a representation agreement be cancelled?
Each agreement contains its own termination terms. Those terms should be reviewed and understood before signing.
Does multiple representation happen automatically?
Multiple representation occurs only if all parties are informed and agree in writing before the transaction proceeds.
Do buyers always pay their REALTOR® directly?
In most Ontario transactions, the buyer does not write a cheque to their REALTOR®. Typically, the seller agrees in the listing agreement to pay a total commission. That commission is paid by the seller’s lawyer from the sale proceeds after the deal closes, and then split between the listing brokerage and the buyer’s brokerage, per the agreement. All commission funds are handled through brokerages and lawyers and are paid through trust accounts, not informally between individuals. However, a buyer’s representation agreement still sets out what the buyer’s brokerage is owed. If a seller does not offer enough commission to cover that amount, the buyer may be responsible for making up the difference. That is why this should always be discussed clearly before an offer is written.
What is the purpose of the RECO guide?
The guide explains rights, obligations, and how representation works in Ontario.
Don’t Miss These Guides
If you would like a deeper look at how the process works in practice, these guides are a good place to start:
Working With a Kingston REALTOR®
First Home Purchase: Kingston Area