If you`re buying a home in Ontario, it`s important to understand what a Buyer Representation Agreement (BRA) holdover period is. A BRA is a legally binding agreement between the buyer and their real estate agent that outlines the services the agent will provide and the terms of the agreement. The holdover period is a specific length of time after the agreement has ended where the agent is still entitled to a commission from the buyer.

In Ontario, the BRA holdover period is typically 30-90 days. During this period, if the buyer purchases a home that was shown to them by their agent during the term of the original agreement, the agent is entitled to their commission. This is to prevent buyers from working with an agent to view homes and then purchasing a property without compensating the agent for their time and expertise.

It`s important to note that the holdover period only applies if the buyer purchases a property that was shown to them by their agent during the term of the original agreement. If the buyer finds a property on their own or through another agent, the holdover period does not apply.

When signing a BRA, it`s important to read the agreement carefully and understand the terms before agreeing to them. The holdover period can be a tricky clause to navigate, so it`s important to ask your real estate agent any questions you may have and ensure you are comfortable with the terms before signing.

It`s also worth noting that while a BRA is a legally binding agreement, it`s not required in Ontario. Buyers are free to work with multiple agents or purchase a home without an agent, but it`s important to understand the potential consequences of doing so.

In conclusion, the Buyer Representation Agreement holdover period is an important clause to understand when buying a home in Ontario. It`s designed to ensure that real estate agents are compensated for their time and expertise in showing buyers properties, but it`s important to read the agreement carefully and ask any questions before signing.