Mandatory Buyer Brokerage Agreements Starting July 01 2014


Effective July 1, 2014,

The Real Estate Council of Alberta (RECA) will require Realtors who establish a client relationship when trading in residential real estate to enter into a written service agreement with their client. Written service agreements help ensure the role of an industry professional is clear, and when clients are better informed, there is less confusion and typically, fewer disputes.

Written service agreements help Realtors clearly and confidently communicate with clients about:
• the relationship between the parties
• the services to be provided by the brokerage
• the obligations and responsibilities of the parties
• consent for collection, use and distribution of personal information of the client
• method of calculation of remuneration or how the industry professional will be compensated

Frequently Asked Questions

Are written Buyer Representation Agreements mandatory?
Yes. Effective July 1, 2014, if you are interested in buying residential property and are the client of a real estate professional in Alberta, you will be asked to sign a written service agreement (buyer representation agreement).
What is the difference between an exclusive and a non-exclusive buyer representation agreement?
In an exclusive buyer representation agreement, you, as the buyer, agree to only use the services of that brokerage to represent and assist you in purchasing a property.
In a non-exclusive buyer representation agreement, you, as the buyer, may use the services of multiple brokerages at the same time. You can enter into multiple non-exclusive buyer representation agreements.
Does my buyer representation agreement have to be exclusive?
No. However, your agreement will need the consent of the brokerage(s) you’re working with. Consumers should make an informed choice about the type of relationship they wish to have with a real estate professional. They should also understand the implications of the options available to them.
When I agree to enter into a written service agreement, is there a specific form I will be asked to sign as a buyer?
The answer to this question depends on two factors:

  •  are you interested in buying residential property?
  • will you be entering into an exclusive buyer representation relationship?

If you answer “yes” to BOTH of these questions, the agreement must contain the mandatory content as contained in RECA’s Exclusive Buyer Representation Agreement. You can review that agreement here.
If you are not interested in residential real estate OR you want a non-exclusive agreement, your real estate professional is not required to use the mandatory content. However, you will be asked to enter into a written agreement that meets the requirements of the Real Estate Act Rules. You can review RECA’s sample non-exclusive buyer representation agreements here.

Further information can be found by visiting the Real Estate Council of Ablberta website