What is a buyer representation agreement?

Before a Calgary REALTOR® invests significant time finding homes and attending showings with a buyer, most ask the buyer to sign a Buyer Representation Agreement. Understanding what you are committing to — and what the agreement gives you — is worth five minutes before you sign.

What the BRA establishes

A BRA is a contract between the buyer and the brokerage (not just the agent personally). It establishes an exclusive relationship, meaning the buyer agrees to work only with that brokerage within the defined scope for the term of the agreement. In exchange, the brokerage commits to: working in the buyer's best interest (fiduciary duty), maintaining confidentiality of the buyer's information, and using their best efforts to find a suitable property.

Key terms in a Calgary BRA

Geographic area: The BRA typically specifies the areas in which the agent will represent the buyer. If you end up looking outside those areas, the BRA may not apply.
Property type and price range: Defines the scope of the search.
Term: Typically 90 days. Renew if the search continues beyond the initial term.
Compensation: Specifies what the buyer's agent will earn. In most Calgary transactions, the seller pays the buyer's agent commission through the listing brokerage's MLS offer of compensation. However, if the property does not offer sufficient compensation, the buyer may need to top up the difference.

Is a BRA required in Alberta?

Alberta law does not require a buyer to sign a BRA. However, most brokerages require their agents to have a signed BRA before showing multiple properties. The Alberta Real Estate Association (AREA) recommends BRAs as a best practice because they clearly establish the agent's duties and compensation expectations before the relationship begins.

Changes with buyer's agent commission transparency

Following CREA and provincial regulatory changes, buyer's agent compensation is becoming more transparent. Buyers in Alberta should expect their agent to explain explicitly what they will earn on any given transaction and whether a shortfall from the seller's offer means the buyer pays the difference.

Frequently asked questions

Does a buyer representation agreement obligate me to buy a home?

No. A BRA does not obligate you to purchase any property — it only establishes who will represent you if you do. You can search for homes within the BRA term and decide not to buy; you are not in breach. However, if you buy a property that falls within the BRA's scope from another agent or directly, the BRA's compensation clause may still apply.

What if I want to switch agents during the BRA term?

Discuss your concerns with the agent directly first. If the relationship is not working, most brokerages will release you from the BRA on request, especially if you haven't yet made an offer. The holdover clause means that if you buy a property that the first agent showed you within the holdover period, their commission may still apply.

Who pays the buyer's agent in Alberta?

Historically, the seller pays both the listing and buyer's agent commissions through the listing brokerage's offer of co-operation on MLS. Changes in the industry mean buyers should confirm their agent's compensation on each transaction. Most Calgary sellers continue to offer a buyer's agent commission as part of the MLS listing terms.

Talk to Ryan Van Spengen

Calgary REALTOR® specialising in divorce, estate, and upsizing transactions. Free consultation — no obligation.

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This page is for general information only and does not constitute legal or tax advice. Consult a qualified Alberta lawyer or accountant for advice specific to your situation.