There’s a growing misconception that buying directly through the listing agent gets you a better deal. In reality, it usually just saves the seller money while putting you at immense personal risk.
About 95% of real estate sales close without a hitch, but it’s the remaining 5% that will put you through the strainer. In Ontario, there are over 190 forms governing real estate transactions. While we don’t use every single one on every deal, knowing precisely which ones to use, and when, is vital. In that tricky 5% of sales, a single missed clause, a missed deadline, or an out-of-place signature can turn a dream purchase into a legal nightmare.
How Representation Works in Ontario
Under Ontario’s real estate regulations (TRESA), you are either a client represented by a brokerage, or a Self-Represented Party (SRP). A SPR is not owed anything more than honest information that is clearly available online. The listing agent cannot offer personalized advice, and any personal information you provide the seller should legally be disclosed to the seller immediately (because the listing agent is working in the seller’s best interest).
When you hire us at Sotheby’s International Realty Canada, our sole legal obligation is to promote and protect your best interests, maintain total confidentiality, and ensure an arms-length negotiation.
If you bypass hiring your own agent and go directly to the listing agent, you become a Self-Represented Party. Under Ontario law, the listing agent cannot give you opinions, advice, or fair representation. Their loyalty belongs entirely to the seller.
Now, you can choose to hire the same agent as the sellers, in a circumstance called multiple representation. In multiple representation, both buyer and seller must consent to receiving services from the same agent and brokerage. And both must accept the reality that an agent can’t be working in both the buyer and seller’s absolute best interests in multiple representation. (However, some sellers will accept a multiple representation situation if it means getting their home sold, or if it means saving money on commission payable).
What That Means for You in Practice:
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No Due Diligence Support: While a seller is legally required to disclose major hidden physical defects they know about (like active mold or structural issues), the listing agent is under no obligation to do your homework. If you plan to build a detached garage, it is not the listing agent’s job to check local zoning laws to tell you if you can, that’s up to your own buyer’s agent.
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No Matchmaking: The listing agent’s job isn’t to help you find the right house; their job is strictly to sell their client’s house.
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Loss of Negotiating Distance: When you work with your own Realtor, your motivation, budget, and strategy remain strictly confidential. If you reveal your budget or deadline to a listing agent, they are going to use that to the seller’s advantage.
The listing agent and the seller are on the same team, always. If an agent promises they can “get you a deal” or guarantee a win in a multiple-offer situation if you double-end the deal through them, be careful, making those promises violates professional standards and ethics.
Protect your investment, your budget, and your peace of mind by making sure you have an expert in your corner who works solely for you.
