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Buyer Agent Commission Agreement for Canada

Buyer Agent Commission Agreement Template for Canada

This document establishes a formal commission agreement between a real estate agent/brokerage and a property buyer in Canada. It outlines the terms under which the agent will represent the buyer in property transactions, including the commission structure, payment terms, and scope of services. The agreement complies with Canadian federal and provincial real estate regulations, particularly focusing on agency relationship requirements, consumer protection laws, and professional standards for real estate transactions. It includes provisions for commission rates, payment conditions, agent obligations, and termination terms, while ensuring compliance with provincial real estate boards' requirements and FINTRAC regulations.

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What is a Buyer Agent Commission Agreement?

The Buyer Agent Commission Agreement is a critical document in Canadian real estate transactions that formalizes the relationship between a buyer and their chosen real estate agent or brokerage. This agreement is typically used when a buyer wants to engage professional representation in their property search and purchase process. It specifies the commission structure, typically ranging from 2-3% of the purchase price, and outlines the agent's duties, including property search, market analysis, negotiation support, and transaction coordination. The document ensures compliance with provincial real estate regulations and consumer protection laws, while providing clarity on the scope of services, payment terms, and duration of the agency relationship. It's particularly important in Canadian jurisdictions where written agreements are required for buyer representation and commission structures must be transparently documented.

What sections should be included in a Buyer Agent Commission Agreement?

1. Parties: Identifies the buyer (client) and the real estate brokerage/agent (agent), including full legal names and contact information

2. Background: Explains the context of the agreement - that the buyer wishes to engage the agent to assist in purchasing property

3. Definitions: Defines key terms used throughout the agreement including 'Commission', 'Property', 'Purchase Price', and 'Term'

4. Appointment and Term: Establishes the exclusive agency relationship and specifies the duration of the agreement

5. Agent's Services: Details the services the agent will provide to the buyer in searching for and acquiring property

6. Commission Structure: Specifies the commission rate or amount and when it becomes payable

7. Payment Terms: Outlines how and when the commission will be paid, including any conditions or circumstances affecting payment

8. Buyer's Obligations: Lists the buyer's responsibilities and commitments under the agreement

9. Agent's Obligations: Details the agent's duties, responsibilities, and standard of care

10. Termination: Specifies how the agreement can be terminated and the consequences of termination

11. Confidentiality: Addresses the handling of confidential information shared during the relationship

12. General Provisions: Contains standard legal provisions including governing law, amendments, and notices

What sections are optional to include in a Buyer Agent Commission Agreement?

1. Multiple Properties: Used when the buyer may be interested in purchasing multiple properties during the term

2. Additional Services: Included when the agent offers services beyond standard buying agent services

3. International Purchases: Added when the buyer may be interested in international properties

4. Team Structure: Included when multiple agents or team members will be involved in providing services

5. Digital Services: Details virtual showings and digital communication methods when relevant

6. Holdover Period: Specifies commission obligations for properties shown during the term but purchased after termination

7. Referral Services: Used when the agreement includes potential referrals to other agents or service providers

What schedules should be included in a Buyer Agent Commission Agreement?

1. Schedule A - Commission Rate Structure: Detailed breakdown of commission rates for different property types or price ranges

2. Schedule B - Property Requirements: Specific details about the type of property the buyer is seeking

3. Schedule C - Excluded Properties: List of any properties specifically excluded from the agreement

4. Appendix 1 - Agency Disclosure: Required disclosures about the nature of the agency relationship

5. Appendix 2 - Service Package Details: Comprehensive list of services included in the agreement

6. Appendix 3 - Team Member Roles: Description of team members and their responsibilities when applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions






























Clauses



























Relevant Industries

Real Estate

Property Development

Property Management

Financial Services

Legal Services

Property Investment

Residential Housing

Commercial Real Estate

Relevant Teams

Real Estate

Legal

Compliance

Business Development

Contract Administration

Property Services

Client Relations

Transaction Processing

Document Management

Relevant Roles

Real Estate Agent

Real Estate Broker

Property Buyer

Real Estate Manager

Compliance Officer

Legal Counsel

Real Estate Transaction Coordinator

Real Estate Administrator

Contract Manager

Business Development Manager

Real Estate Executive

Property Consultant

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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