RECO is disciplining Ontario agents for faking buyer contracts — here's what to check before you sign

The case is one of dozens RECO has referred for discipline this year, and it centres on a document most buyers barely read: the buyer representation agreement (BRA). Sign one without understanding it, and a realtor you’ve already fired can, in some cases, still be owed commission months later — even on a home you found yourself.

What a buyer representation agreement actually locks you into

A BRA is a legally binding, exclusive contract between a homebuyer and a brokerage. Once signed, the buyer becomes a client and the brokerage owes them fiduciary duties, including loyalty, confidentiality and full disclosure. In exchange, the buyer typically agrees to work only with that brokerage for a set term within a defined property type or area.

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RECO’s crackdown shows why the fine print matters

A registrant found to have breached RECO’s Code of Ethics can be fined up to $50,000, with brokerages facing fines of up to $100,000, plus costs and mandatory education. Cases referred for discipline in 2026 include agents accused of “facilitating unauthorized property access,” “providing false or deceptive mortgage documents” and failing to ensure a brokerage complied with the “requirements related to the preparation, review, and signing of real estate trust account reconciliations,” just to name a few.

None of this shields buyers directly, but it signals a regulator actively policing the paperwork buyers sign.

The holdover clause trick that keeps costing buyers money

Most BRAs include a holdover clause, which extends the brokerage’s right to commission for a set number of days after the agreement expires, if the buyer completes a purchase on a property the agent introduced during the contract term. RECO says these clauses are not required but are a frequent source of consumer complaints.

In this hypothetical example, assume a buyer’s 90-day BRA expires, and 20 days later they close on a house their agent had shown them before the contract ended. If the agreement includes a 30-day holdover clause, the buyer could still owe that brokerage’s commission — potentially $15,000 or more on a mid-priced Ontario home — even if they never spoke to the agent again. This example is illustrative only; actual amounts depend on the property price and the commission rate negotiated in each contract.

How to check if your agent is in good standing with RECO

Before signing anything, buyers can search an agent’s name on RECO’s public registrant lookup to confirm they are actively licensed and check for any discipline history. RECO also says that agents should review a BRA’s holdover clause, exclusivity period, commission rate and cancellation terms with clients before they sign.

Buyers are not required to accept the first draft of a BRA. Commission rates, term length and holdover periods are all negotiable, and a buyer can ask a brokerage to shorten or remove a holdover clause entirely.

The real decision homebuyers face is not whether to sign a BRA — most agents will ask for one before showing homes — but how closely they read it first. A short conversation about exclusivity, term length and holdover terms before the first showing is the difference between a normal client relationship and an unexpected bill months after it ends.