Most people spend more time choosing a sofa than reading the agreement they sign with a real estate agent. That agreement decides what services you get, how the agent is paid, how long you are committed and what happens if things don't work out. These ten questions will help you read it with your eyes open.
Rules differ by province. The examples below come from Ontario and British Columbia regulators, so check with your own provincial regulator if you live elsewhere.
Before you agree to work together
1. Are you registered, and with whom? Real estate agents are licensed or registered by a provincial regulator, and most regulators publish a register you can search. Check the name, the brokerage and the status yourself. Our guide on how to check a licence lists where to look.
2. What kind of representation are you offering? In Ontario, the Real Estate Council of Ontario (RECO) says your agreement must state whether the brokerage as a whole represents you or a named designated representative does. Ask which one you are getting and what it means if someone else at the same brokerage represents the other side.
3. Which services are included? RECO advises listing the services in the agreement or a schedule, because services that are not listed may not be provided. If staging advice, open houses or help reviewing condo documents matter to you, get them in writing.
Money questions
4. How will you be paid, and how much? In Ontario, the amount is negotiated between you and the brokerage. RECO, government bodies and real estate boards do not set or approve it. It can be a fixed amount, a percentage of the price, or both, but it cannot be based on the difference between the listing price and the sale price.
5. As a buyer, what happens if the seller won't cover your fee? RECO points out that a seller may not agree to pay your brokerage, which can affect what you can offer and afford. Agree in advance how that situation would be handled.
6. Are there any other fees? Ask about administration or transaction fees from the brokerage so the total is clear before you start.
Commitment questions
7. How long does the agreement last? In Ontario, the expiry date must appear prominently on the first page. The BC Financial Services Authority also advises reviewing how long a buyers agreement lasts, along with the commission payable, before you sign. A shorter term is easier to extend than a long one is to escape.
8. Is there a holdover clause, and how long is it? Most agreements include one. It can require you to pay a fee if you buy or sell a property introduced during the agreement after it expires. RECO notes there is no standard length and the clause mainly protects the brokerage, so agree on the length before you sign.
9. Can the agreement be cancelled, and at what cost? The agreement should list every circumstance in which it can be ended and any penalties or costs. If it is silent, ask for it to be added.
10. What happens if you end up representing both sides? In Ontario you do not have to agree to multiple representation, and the agreement should say what happens if it arises, such as ending the agreement or referring you to another agent. Rules differ by province, so ask how yours handles it.
Common mistakes to avoid
- Signing on the spot at a showing without reading the term, fee and holdover clause.
- Assuming the fee is fixed by law. In Ontario it is negotiable.
- Forgetting that changing any term of an offer counts as a counter-offer. BCFSA notes that a counter-offer rejects the original, which you cannot later go back and accept.
- Relying on a verbal promise about services that never makes it into the agreement.
When you are ready to compare agents, you can browse real estate agents by city and use these questions in your first conversation.
Sources
- Real Estate Council of Ontario, Signing a contract with a real estate brokerage. Accessed 2026-10-14.
- BC Financial Services Authority, Real estate facts. Accessed 2026-10-14.
This article is general information for Canadian consumers, not financial, legal or tax advice. Rules, rates and programs change and can differ by province and by lender. Confirm the details that apply to you with a licensed professional before you act.
