Do You Need a Real Estate Agent to Buy a Home in Canada

Buying a home in Canada involves more than viewing listings and making an offer. It is a regulated financial transaction with legal, contractual, and fiduciary elements. One of the first decisions most buyers face is whether to work with a licensed real estate professional, commonly referred to as a REALTOR® or to navigate the process independently. While there is no legal obligation to hire one, understanding the implications of that choice is essential before taking the next step.

Let’s examine what a REALTOR® actually does, what you risk by going solo, and when professional representation offers the greatest value.

What a REALTOR® Actually Does for a Buyer

A REALTOR® is more than just someone who opens doors during showings. They are licensed professionals regulated by provincial real estate councils, such as the Real Estate Council of Ontario (RECO), and bound by a Code of Ethics established by the Canadian Real Estate Association (CREA). Their responsibilities include:

Market analysis: Reviewing comparable sales, pricing trends, and neighbourhood statistics.
Property searches: Accessing MLS® and internal brokerage networks to find listings that fit your criteria.
Due diligence: Identifying potential red flags (e.g., easements, pending assessments, or zoning issues).
Offer preparation and negotiation: Drafting legally binding agreements, handling conditions, and protecting your deposit.
Transaction coordination: Working with lenders, lawyers, and inspectors to ensure a smooth closing.

In short, a buyer’s agent acts as your fiduciary, they owe you loyalty, confidentiality, and full disclosure.

Can You Buy a Home Without a REALTOR®?

Yes, you can. Buyers are not legally required to work with a Real Estate Agent in any province. Some choose to:

Purchase directly from the seller in a private sale (For Sale by Owner or FSBO).
Work with the listing agent or the brokerage in a “multiple representation” or the newly available “designated representation” scenario (in provinces where permitted).
Handle the transaction independently, often with help from a real estate lawyer, as a Self-Represented Party (SRP).

However, each option carries distinct risks that buyers should understand.

Private Sales (FSBO) Private listings can sometimes save sellers commission costs, but buyers have to do their own research. Without professional representation, you must verify title status, review property disclosures, and handle the purchase contract. A real estate lawyer can assist, but they typically enter the process near the end — after key decisions have already been made.

Multiple or Designated Representation (In Ontario) Under the Trust in Real Estate Services Act (TRESA), brokerages in Ontario can work with both the buyer and seller in the same deal under two main models:

Multiple Representation (or Dual Representation): This occurs when one brokerage (or the same agent) represents both the buyer and the seller. It is permitted only with mandatory written consent and disclosure. The agent’s duties are significantly restricted; they must remain objective and impartial, limiting their ability to negotiate or provide advice to either party.
Designated Representation: This common new model allows the brokerage to assign different individual agents (Designated Representatives) within the same brokerage to represent the buyer and the seller. In this scenario, each designated agent owes full fiduciary duties (loyalty, confidentiality, and advice) to their respective client. The brokerage itself remains neutral.

Both scenarios require mandatory written disclosure and consent.

Independent Purchase (Self-Represented Party – SRP) Even with online data and public MLS® access, interpreting market information correctly requires skill. Statistics like sales-to-new-listings ratios or average days on market are context-dependent; an experienced buyer’s agent can tell you whether a 45% SNLR signals a balanced market or an emerging buyer’s advantage. Furthermore, a licensed real estate professional is legally prohibited from providing a Self-Represented Party (SRP) with services, opinions, or advice (such as an appropriate offer price).

The Legal Side: Representation Agreements and Obligations

Before working with a REALTOR®, you’ll sign a Buyer Representation Agreement (BRA). This document sets out:

The agent’s duties and obligations
The brokerage’s compensation (usually paid by the seller’s brokerage)
The time period of representation
Your right to end or modify the agreement

Under TRESA (Trust in Real Estate Services Act) in Ontario and similar provincial laws elsewhere, a licensed agent must prioritize your interests above all others when representing you.

To verify any agent’s registration or discipline history, verify licensing.

Who Pays the Commission?

A common misconception is that buyers “don’t pay” for their agent. Technically, commissions are paid by the seller to the listing brokerage, which then shares it with the cooperating (buyer’s) brokerage.

However, the Buyer Representation Agreement (BRA) typically makes the buyer contractually responsible for their agent’s commission. If the commission offered by the seller's brokerage is less than the amount specified in the BRA, the buyer may be required to pay the difference directly to their agent's brokerage. This structure may indirectly influence property prices or buyer offers.

Some brokerages offer buyer cash-back incentives, returning a portion of the commission to the buyer upon closing, as long as the brokerage receives commission from the seller. Always ask for written confirmation before signing a BRA.

When a REALTOR® Adds the Most Value

While confident, data-savvy buyers can complete a transaction independently, hiring a REALTOR® tends to add measurable value in several situations:

Scenario	Why Professional Help Matters
First-time buyers	Explaining financing terms, deposit rules, and closing costs can prevent costly missteps.
Out-of-province or immigrant buyers	Local expertise helps identify neighbourhood dynamics, school zones, and municipal regulations.
Pre-construction purchases	Builders' agreements of purchase and sale are heavily tilted toward developers; broker guidance and legal review are essential.
Rural or unique properties	Septic systems, wells, or agricultural zoning require specialized due diligence.
Competitive bidding	Understanding escalation clauses and deposit strategies can make or break an offer.

What Happens If You Go It Alone

If you decide not to use a REALTOR®, you will be considered a Self-Represented Party (SRP) and will need to:

Research comparable sales through public records.
Handle all communication with the seller or listing agent, knowing the agent is legally obligated to act only in the seller’s best interest.
Draft your own offer using legally compliant forms (usually through a lawyer).
Arrange inspections and coordinate conditions.
Negotiate directly, without professional advocacy.

The most common pitfalls of self-representation include overpaying, missing legal disclosures, and failing to secure conditional protections (such as financing or inspection clauses). Any information you share with the other party’s agent (e.g., your motivation or your maximum price) must be shared by that agent with their client (the seller).

Balancing Autonomy and Expertise

Some buyers prefer to remain hands-on and simply want to understand how their agent earns their commission. Others view professional guidance as indispensable for peace of mind.

The middle ground is to interview multiple REALTORS®, review their experience with your target property type, and request transparency on service structure and compensation. You can even agree to limited-service representation, where the agent assists with certain tasks while you retain control of others.

Consumer Protection and Final Thoughts

Buying a home without representation might feel empowering, but the Canadian real estate system is complex and highly regulated for a reason. REALTORS® are trained to navigate disclosure obligations, fair housing laws, and financing contingencies — areas where a single error can have long-term financial consequences.

Ultimately, whether you choose to work with a REALTOR® should depend on:

Your comfort level with legal documents and negotiation
The complexity of the property and market conditions
Your access to reliable data and expert advice