Working with a real estate agent

Real estate is a regulated profession, which means that agents are required to complete mandatory education, have professional liability insurance, complete a criminal reference check, and pay annual fees. All real estate agents in Ontario must be registered with the Real Estate Council of Ontario (RECO), which you can verify through our Agent/Brokerage Search. Consumers can also contact RECO with questions or to file a complaint.

Your real estate agent has many duties and obligations to you, including:

• Promoting and protecting your best interests.
• Protecting your confidential information.
• Avoiding and disclosing conflicts of interest.
• Taking all reasonable steps to determine material facts that might affect your decision to purchase a property.
• Advising you to obtain services or expert advice from another professional when necessary.
• Keeping you fully informed of all steps taken during the course of representing you.
• Providing you with the RECO Information Guide, which explains the role of real estate agents and brokerages, the services they provide, and what you can expect during the buying process. 

As a buyer, your real estate agent can: 

• Refer you to other professionals you’ll need, such as a mortgage broker, lawyer, or home inspection company.
• Make you aware of any tax exemptions you might be eligible for.
• Gather and share information about neighbourhoods and homes that meet your requirements and arrange to show you homes you’d like to see.
• Make inquiries about zoning, permitted property use, or other aspects of the property.
• Advise you on the best approach in competing offer situations and how to protect your offer information.
• Negotiate with sellers to achieve the price and terms that meet your needs.
• Guide you through paperwork and closing the home purchase successfully.

Finding a real estate agent who is the right match for your needs is important. Your agent should be able to provide expert guidance and help you make the right decisions when buying a home. 

There are more than 100,000 real estate agents in Ontario. Here are some tips for finding and choosing the agent that’s right for you:

Referrals and online searches

Start by asking friends, family, or colleagues for referrals. You can also search online for agents in your area. The right agent should understand your needs and have the right expertise for the type of property you plan to purchase.

Interview before you hire

Interview a few agents—RECO recommends at least three—and learn about their experience, how they work, and what services they offer.

• Ask each agent to describe their knowledge and experience in real estate with the specific type of property.
• Ask about the services the agent will provide. Service offerings vary from brokerage to brokerage and agent to agent. Take the time to understand what they offer you.
• Ask about fees or commissions (see your contract with the real estate brokerage section for more details).
• Ask about their approach to the buying and selling process. You will want to be comfortable with their methods and philosophy.
• Ask the agent how they will negotiate with sellers.
• Ask each agent for references from past clients and then follow up with those clients to hear about their experience with the agent. 

Verify registration 

Before choosing an agent, make sure they are legally allowed to trade in real estate. We strongly encourage you to ensure your agent is registered with RECO by searching RECO’s Agent/Brokerage Search.

Clients of a real estate agent also have responsibilities. You will need to:

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

If you decide not to work with a real estate agent, it will be your responsibility to look after your own best interests and protect yourself.

This is known as self-representation. Very few buyers or sellers make this choice.

There are significant risks to representing yourself in a real estate transaction if you do not have the knowledge and expertise required to navigate the transaction on your own. In most cases, you will be dealing with a seller who is benefitting from the services, opinions, and advice of an experienced real estate agent. 

It’s important to be aware that the real estate agent working for the seller has a legal obligation to act in the best interests of their seller client. 

Be careful about what information you share.

The seller’s agent is obligated to share anything you tell them with the seller, including:

• your motivation for buying the property.
• the minimum or maximum price you are willing to offer.
• your preferred terms or conditions for an agreement of purchase and sale.

You will need to sign the Information and Disclosure to Self-Represented Party form before engaging in a transaction with an agent representing a seller. The agent will also provide you with the RECO Information Guide.

RECO recommends that you seek independent professional advice before you receive any assistance from a real estate agent representing the seller.