If you have been asked to sign this form or are just trying to understand what it means, you are in the right place!

This page will explain Form 371: Buyer Designated Representation Agreement for Purchase or Lease in clear, everyday language. Whether you’re a first-time buyer or just doing your research, this will help you understand what you’re signing and what to expect from your real estate agent.

There are two main types of representation in Ontario real estate:

In this setup, the entire brokerage represents you. That means any agent at that brokerage is considered your representative. This can lead to conflicts when another client at the same brokerage is on the other side of a deal (like a competing buyer or the seller of the home you want).

This is what Form 371 sets up. You get a specific agent who represents you directly. The rest of the brokerage must treat you neutrally and cannot access your private information. It helps avoid potential conflicts, especially in situations where the same brokerage represents both the buyer and the seller.

Designated representation gives you clarity, privacy, and a more focused client-agent relationship. That’s why it’s becoming the standard in Ontario.

By signing Form 371, you’re agreeing to:

• Work exclusively with the agent for a set period of time
• Let them represent you during your home search and purchase
• Pay commission only if certain conditions are met (more on that below)

Usually, your agent’s commission is paid by the seller. But this form also covers what happens if:

• The seller is not offering commission
• The commission offered is lower than what you agreed to
• You buy a home without involving your agent during the agreement period

If there’s a gap between what the seller pays and what was agreed to in this contract, you may be responsible for covering the difference. Your agent will always disclose this ahead of time.

Under this agreement, your agent will:

• Help you understand how much you can afford
• Send you listings, book showings, and offer market insight
• Handle paperwork and deadlines
• Protect your privacy and negotiate on your behalf
• Offer guidance through the entire buying process

Your agent is legally required to act in your best interest, keep your information confidential, and help you make well-informed decisions.

Sometimes, the same brokerage (or even the same agent) might represent both the buyer and the seller in the same deal. That’s called multiple representation.

If that happens:

• Both parties must agree in writing before the deal can move forward
• The agent must stay neutral and cannot give you advice on what price to offer or accept
• Your private info cannot be shared without your permission

If you’re not comfortable with this, you can say no. You may also be referred to a different agent or brokerage.

If you come across a home from another source (like an open house or a friend) and it matches what’s outlined in this agreement, you still need to let your agent handle the process. This ensures you stay protected, and that your agent can fulfill their role under the contract.

• Agents are not home inspectors. You’ll need to hire specialists to check the roof, foundation, plumbing, and other issues.
• Your info is protected. Any personal or financial information you share stays confidential.
• The agreement may include a “holdover period.” If you buy a home shortly after the agreement expires that your agent showed you, they may still be owed commission.

Because buying a home is a huge step. And having the right kind of representation ensures you get expert guidance, strategic advice, and someone in your corner who knows the process inside and out.

Form 371 helps clarify expectations, protects your interests, and gives you a trusted advisor at your side.

If you’re not sure whether to sign, or want to talk to someone who will walk you through the process without pressure, we’re here to help.

Book a free consultation with RE/MAX Team Paliwal or ask us your questions directly. No pressure. No obligation.

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We’ll reach out with helpful next steps and connect you with an agent who will take the time to explain everything properly.

Many buyers have successfully navigated the home-buying process with our help. Here’s what some of them had to say:

“We had a fantastic experience with Gyanesh and TEAM Paliwal. Their professionalism and support made our home buying journey smooth and stress-free.”

“TEAM Paliwal helped us find our dream home within our tight timeline. Their expertise and dedication were invaluable.”

Remember, you’re not alone in this journey. RE/MAX Team Paliwal guides you every step of the way, ensuring a smooth and successful home-buying experience.

The first step is to schedule a no obligation in-person or zoom video call meeting to understand your unique needs. 10 out of 10 buyers have found this initial meeting to be extremely useful in their buying journey. Contact us today!

Searching for a home in Brampton? RE/MAX Team Paliwal is here to help.

Whether you’re looking for a resale property or a brand-new build, our experienced team will guide you through every step of the process to ensure a smooth, stress-free closing. 

We’re recognized as one of the Top 50 Real Estate Teams in Canada by RankMyAgent.com and we bring a proven track record of success.

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All of our agents are deeply familiar with the Brampton market. Let our local expertise work for you.

Get in touch today and let us help you find your dream home.