You as a buyer should be aware of your options so that you are better able to protect your position in a Real Estate deal/transaction.
When you are buying your home, a real estate broker or salesperson may ask you to sign a representation agreement. A representation agreement defines the nature of the relationship between you and the brokerage, including the broker or salesperson.
Representation agreements can be written, oral or implied. However, your broker or salesperson is required by law to reduce the agreement to writing and provide it to you for your signature. The agreement should be in writing in order to protect the interest of all parties.
Some people may have conflicting opinions about signing this document. However, please keep in mind that prior to 1995 all Realtors worked for the seller in a real estate transaction. This rule has now changed and a buyer can now retain the services of a realtor working for them. Exercise your right and have the same legal representation as sellers have had for nearly 100 years.
Never sign an agreement unless you are sure you know what it means, how long it will be in effect and what the different clauses mean. It’s one of the most important steps you can take to protect yourself. Take the time to read it thoroughly. Ask questions. Your broker or salesperson can’t provide legal advice, but they are familiar with these agreements and should be able to answer your questions and explain what the clauses mean and what effect they will have.
Reference: Real Estate Council of Ontario