Zinati Kay - Real Estate Lawyers

10/20/2026

Three Bullet Thursdays – Law You Need to Know


Subject: Every Real Estate Deal Needs a Quarterback. That’s Your Lawyer.


In our Back to Basics series, we’ve looked at financing and inspection conditions, the usual precursors to a firm deal. Once your agreement is firm, the work of getting the transaction to closing begins. Your real estate lawyer is the quarterback of that process: if you’re buying, we work to get you your keys; if you’re selling, we work to get you your money.


1. Send us the complete agreement—and tell your team who we are.

That means the signed Agreement of Purchase and Sale, every schedule, and any amendments, notices or waivers. The agreement sets out the terms and deadlines we need to work with. Please also tell your real estate agent and your lender the name and contact information for your lawyer so they can send instructions and documents to the right place.

We’ll review the agreement, explain the legal steps ahead, and flag anything that needs attention. If a question or concern comes up, raise it early so we can address it while there is still time.

2. We’ll give you a clear roadmap and a dedicated point person.

At our office, we assign a clerk to your transaction who will help move the file forward and coordinate the information and documents needed for closing. We’ll also send you a letter outlining what you need to do, what we’ll be doing, and the information we need from you. Your clerk will keep the process moving and let you know when something is required.

3. We prepare you for signing and closing.

As the closing date approaches, you’ll meet with one of our lawyers to review and sign your closing documents. With us, before closing, you are going to meet with a lawyer to review everything. Not every firm does this so please make sure that you have an opportunity to meet with the lawyer before completing your transaction. It is your chance to fully understand the documents and raise any legal questions you might have.

For a purchase, we’ll also arrange title insurance where appropriate and explain the closing funds and documents required for your transaction. We will receive and complete the documents necessary to receive funds from your lender.

For a sale, we’ll prepare the documents needed to complete the transfer and arrange for the sale proceeds to be paid to you after closing.Will take care of paying out any mortgages or commission payments or outstanding taxes as part of this and provide you with the balance of payment.

Why this matters:
A closing is a series of steps involving you, your lawyer, the other side’s lawyer and, if there is a mortgage, your lender. Getting the complete file to us promptly, making sure your agent and lender know who we are, and responding to requests helps us keep those steps on track.

Bottom line:
Once your deal is firm, send us the complete agreement, tell your agent and lender who your lawyer is, and watch for our letter. We’ll guide you through the work between signing the offer and closing the transaction.

Coming next Thursday:
We’ll look at some of the decisions and details buyers should start thinking about as closing approaches—including how to take title, home insurance, title insurance, land transfer tax rebates and tax adjustments. We’ll take those one step at a time as the transaction moves toward closing.

Dig Deeper:
Law Society of Ontario: Real Estate Practice Basics

Warm Regards,

John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

10/15/2026

The Taxman Cometh—Flipping Houses? Don’t Flip Past the Tax Bill- Three Bullet Thursdays
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John

11:02 AM (6 minutes ago)


to me

THREE BULLET THURSDAYS – LAW YOU NEED TO KNOW

The Taxman Cometh—Flipping Houses? Don’t Flip Past the Tax Bill.

We’re taking a short break from our Back to Basics series because a recent Toronto case delivers a timely warning: if you are building or substantially renovating homes to sell for profit, do not assume you can make the tax disappear by calling the property your residence.

CRA is actively examining these transactions. Its national real estate audit results for April 2024 to March 2025 included more than $231 million in GST/HST assessments. These are existing tax rules, but owners who assumed their projects would pass as tax-free home sales should take notice.

1. You may be a “builder” without thinking of yourself as one.

In Salehi v. The King, a Toronto owner built and sold two homes, claiming personal or family purposes. The Tax Court found that both projects were ventures for profit and upheld CRA’s HST assessments. You do not need to operate a construction company to be a “builder” for HST purposes. What you actually did—and why—matters more than the label you put on it.

2. Moving in briefly does not turn a flip into a tax-free home.

The owner claimed to have lived in the first home before selling. The Court examined the listing dates, address changes, utility records and explanations for the sale. It found that the claimed residential use was “window dressing.” Moving in for a few months is no reliable escape from HST where the evidence shows that the property’s primary purpose remained resale for profit.

3. Already started your project? This warning is for you, too.

A slower market does not, by itself, turn a venture for profit into a personal residence. If you have already bought, started construction or undertaken substantial renovations with resale in mind, review the tax position now—before the project is completed or the sale agreement is signed. GST/HST can apply to the taxable sale price or, under the self-supply rules, the property’s fair market value, including the land. It is a separate question from income tax on your profit.

Why this matters

Most ordinary sales of used homes remain exempt from HST. But building or substantially renovating for resale can produce a very different result. If your agreement includes any applicable HST in the price, the tax can come straight out of your sale proceeds. An already tight project can become considerably tighter.

Bottom line

If you are flipping houses as a business, plan for the tax consequences as a business. Do not budget on the assumption that a brief stay or a principal residence designation will make the taxes go away. Whether you are considering a project or already halfway through one, get advice on both income tax and HST before committing further.

Dig Deeper

Toronto Lawyers Association bulletin: House Flipping & Brief Occupancy — https://www.lexology.com/library/detail.aspx?g=8ffa0b37-726f-4252-bf30-1f58d5c508d2&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Toronto+Lawyers+Association+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2026-10-08&utm_term=

CRA: Real Estate Audits and Tax Compliance

Warm Regards, John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

10/08/2026

Three Bullet Thursdays – Law You Need to Know

Subject: Buying a Home Is a Commitment. Make Sure Your Mortgage Is, Too.

Hi everyone,

Last week, after our brief pause to cover changes to Ontario’s landlord and tenant rules, we returned to our Back to Basics series with home inspections. This week, we move to another important step in buying a home: arranging financing.

A mortgage pre-approval can help you plan, but it is not the same as final approval for a particular property. Here are three things buyers should keep in mind.

1. A Pre-Approval Is a Starting Point

A pre-approval can help you estimate a borrowing range and, in some cases, hold an interest rate for a limited period. It does not guarantee that a lender will approve the mortgage for the home you ultimately choose. The lender still needs to review your full application and the property.

2. A Financing Condition Can Protect You

Where appropriate, a buyer may include a condition making the purchase subject to arranging satisfactory financing. The wording, deadline and notice requirements matter. A condition should give you enough time to obtain a meaningful decision from your lender and should be reviewed before you sign the offer.

3. Move Quickly After Your Offer Is Accepted

Once you have an accepted offer, send the agreement and requested documents to your lender or mortgage broker promptly. Ask for the mortgage commitment in writing, and check what conditions, if any, remain before treating the financing as secure. A verbal assurance or preliminary discussion is not the same as a written commitment.

The lender may need to verify your income, down payment and debts, and assess the property. This risk can be especially difficult with a new condominium. Buyers may sign an agreement years before closing, expecting to arrange mortgage financing based on the purchase price. If the lender’s appraisal near closing comes in far below that price, the mortgage may be much smaller than expected—or may not be approved. If the financing condition was waived, expired or never included, the buyer may still be committed to close and need to find a substantial shortfall elsewhere.

Keep track of the condition deadline, and get legal advice before waiving or removing the condition if you are unsure whether financing is firmly in place.

Why this matters

If you rely only on a pre-approval, you may discover too late that the lender will not approve the mortgage on the terms or timeline you expected. For a new condominium, early financing discussions may happen years before the lender completes its final review. If you make an offer without a financing condition, or waive it before final approval, you may remain contractually committed even if financing later falls through.

Bottom line

Know your budget before you offer, understand exactly what your financing condition requires, and do not assume that a pre-approval is a final mortgage commitment.

Dig Deeper

Financial Consumer Agency of Canada – Getting pre-approved for a mortgage
RECO – Buyer’s checklist
RECO – Competing offers and financing
CMHC – How property value affects mortgage approval

Warm Regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

09/29/2026

THREE BULLET THURSDAYS
Law You Need to Know
Back to Basics: The Home Inspection — Know Before You Buy

Last week, we briefly stepped away from our Back to Basics series to bring you an important update on the changes to Ontario’s landlord and tenant laws.

This week, we’re back at it.

We’ve talked about working with your Realtor and making an offer. Now we turn to one of the most important protections a buyer can consider before committing to a home: the home inspection.

Here are three things every buyer should know:

1. No inspection condition? You may be buying the home as you find it.

Ontario still operates largely on the principle of buyer beware when it comes to defects that a reasonable inspection could uncover.

A home inspection condition gives the buyer an opportunity to have the property professionally inspected before becoming unconditionally bound to complete the purchase.

If you make a firm offer without an inspection condition — or waive that condition — you generally cannot later walk away simply because you discover that the roof needs replacing, the furnace is nearing the end of its life, or there are other repair issues you did not anticipate.

That is why RECO specifically cautions buyers to think carefully before removing an inspection condition, even in a competing-offer situation.

2. An inspection can reveal a lot — but it cannot reveal everything.

A qualified home inspector will typically look at major components of the property, including the roof, electrical system, plumbing, heating and air conditioning, foundation and other visible components.

But an inspection is not a guarantee that the house is problem-free.

Some problems are hidden. Inspectors generally cannot see behind finished walls or underneath floors, and some defects may not be apparent during a visual inspection.

The goal is not perfection. It is to give the buyer considerably more information about what they are buying and identify issues that may require further investigation.

3. What the inspection condition actually does matters.

Finding a problem during an inspection does not automatically mean the seller has to fix it or reduce the price.

The wording of the condition in the Agreement of Purchase and Sale matters.

Depending on that wording, an unsatisfactory inspection may allow the buyer to walk away, or the parties may agree to repairs, a price adjustment or some other solution.

Your Realtor plays an important role in making sure the inspection condition reflects what you intend and in helping negotiate any issues that arise from the inspection.
Why This Matters

Once your conditions have been satisfied or waived and the deal becomes firm, you are expected to close.

Discovering an expensive repair later does not, by itself, give you a right to terminate the transaction.

And the same principle applies to another very important condition: financing.

A buyer whose financing falls through is not automatically released from a firm Agreement of Purchase and Sale.

That’s where we’re headed next week.
Bottom Line

A home inspection may cost a few hundred dollars and take a few hours.

But when you are making one of the largest purchases of your life, the information it provides — and the protection provided by a properly drafted inspection condition — can be invaluable.

Know what you’re buying before the deal becomes firm.
Dig Deeper

RECO — Home Inspections
https://www.reco.on.ca/consumers/information-for-buyers/home-inspections/

RECO — Buyer’s Checklist
https://www.reco.on.ca/consumers/information-for-buyers/buyers-checklist/

RECO — Competing Offers and Conditions
https://www.reco.on.ca/consumers/information-for-buyers/competing-offers/

Coming Next Week:
Financing Conditions — Why a Mortgage Pre-Approval Doesn’t Necessarily Protect You

Warm Regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

09/23/2026

Ontario Just Changed the Rules for Landlords and Tenants
Three Bullet Thursdays — Law You Need to Know

Hi everyone,
This Week, the Law Changed — So We're Changing Course

We've been working our way through our Back to Basics series on buying a home from start to finish. But when an important change in Ontario real estate law takes effect, it's worth pressing pause.

This is one of those changes.

On September 21, 2026, significant changes to Ontario's residential tenancy laws came into effect. They affect unpaid rent, evictions for a landlord's own use, and the rights of tenants who have to leave while major renovations are carried out.

Whether you're a landlord, tenant, buyer or seller of a tenanted property, these are new rules worth knowing.

So, Back to Basics will be back next week. This week, here are three changes you need to know.
1. Fall behind on the rent? The clock now moves much faster.

For the typical monthly tenancy, an N4 notice for non-payment of rent previously had to give the tenant at least 14 days before the termination date. Daily and weekly tenancies already had a shorter seven-day period.

As of September 21, the rule is now 7 days for all tenancies.

That does not mean a tenant is automatically evicted after seven days. An N4 is the beginning of the process, not an eviction order. But once the termination date passes, the landlord can take the next step and apply to the Landlord and Tenant Board.

There is another important change. For rent-arrears applications filed on or after September 21, a tenant who wants to raise their own issues at that hearing — for example, maintenance, repairs or harassment — must generally pay the landlord at least 50% of the rent arrears claimed in the application, no later than seven days before the hearing, in addition to complying with the LTB's notice and evidence requirements.

And chronic late payment has become more clearly defined. Paying rent more than seven days late at least three times within a six-month period is now expressly identified as a circumstance amounting to persistent late payment, although the Board can still find persistent late payment in other circumstances.

Why this matters: The timelines have become considerably tighter. Tenants need to deal with an N4 immediately, and landlords need to make sure their notices and calculations are correct before starting proceedings.
2. "I'm moving in" — the N12 rules have changed too.

An N12 can be used where a landlord genuinely requires the property for residential occupation by the landlord or certain close family members. It can also be used in certain circumstances where a purchaser requires the property — but an important new rule applies only to landlord's-own-use N12s.

The intended occupation must be in good faith, and the qualifying person must genuinely intend to occupy the property as a residence for at least one year.

Normally, an N12 for landlord's own use requires at least 60 days' notice and the landlord must pay the tenant one month's rent as compensation or offer another acceptable rental unit.

There is now another option.

For an N12 for landlord's own use given on or after September 21, if the termination date is at least 120 days after the notice is given and satisfies the other statutory timing requirements, the landlord does not have to pay the one month's compensation or offer another unit.

In simple terms:

60-day route: compensation required.
120-day route: compensation can be avoided.

Importantly, the new 120-day exception does not apply where the N12 is being given for a purchaser's own use.

There is also a new rule aimed at ensuring "own use" really means own use. For landlord's-own-use N12s, if the person identified in the notice does not move into the property within the prescribed 60-day period, there is now a rebuttable presumption of bad faith. The precise starting point for that 60-day period depends on when the tenant actually leaves.

Why this matters: An N12 is not simply a way to obtain a vacant unit. The required intention to occupy must be genuine, and the consequences of getting it wrong can be significant.
3. Renovictions: tenants who want to return get clearer protections.

There are also new rules for tenants who have to leave because renovations or repairs are so extensive that vacant possession is required.

A tenant can have a right of first refusal to return to the unit after the work is completed — but the tenant must preserve that right by giving the landlord written notice before moving out and keeping the landlord informed of any change of address.

Where that right has been properly exercised, the landlord now has additional obligations.

The landlord must tell the tenant the estimated date the unit will be ready, provide written updates if that date changes, and notify the tenant when the unit is actually ready for occupancy.

Most importantly, where the unit becomes ready on or after September 21, the tenant must be given at least 60 days to exercise the right to return.

And returning does not mean starting over at whatever rent the market will bear. A tenant exercising the right of first refusal may return at no more than the rent the landlord could lawfully have charged had the tenancy never been interrupted.

Why this matters: The right to return can be valuable, but tenants need to preserve it properly — and landlords need to follow the new notification requirements.
THE BOTTOM LINE

Seven days. 120 days. 60 days.

Those numbers now matter.

Some of these changes accelerate procedures available to landlords. Others clarify or strengthen protections for tenants. For both sides, the practical lesson is the same: know the rules before you act.

There is an important real-estate angle too. If you're buying or selling a property with a tenant in it, don't assume that a sale automatically ends the tenancy or that vacant possession can simply be promised. The Residential Tenancies Act can directly affect what can — and cannot — happen before closing.

Know the notice. Know the deadline. Know your rights.
COMING NEXT WEEK

With this important update covered, we'll return to our Back to Basics series next Thursday and pick up where we left off:

Financing your home purchase — and why a mortgage pre-approval isn't always the final word.
DIG DEEPER

Residential Tenancies Act, 2006
https://www.ontario.ca/laws/statute/06r17

Landlord and Tenant Board — September 21, 2026 Legislative Changes
https://tribunalsontario.ca/2026/09/21/ltb-operational-update-legislative-changes-at-the-landlord-and-tenant-board-effective-september-21-2026/

Landlord and Tenant Board
https://tribunalsontario.ca/ltb/

CTV News — Ontario rental rule changes will shorten timelines for tenants facing eviction
https://www.ctvnews.ca/ottawa/article/ontario-rental-rule-changes-will-shorten-timelines-for-tenants-facing-eviction/

Thank you for reading another edition of Three Bullet Thursdays — Law You Need to Know.

As always, if you have questions about a real estate matter, we're here to help. And if there's a topic you'd like us to cover in a future edition, please let us know.

Warm Regards,

John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

09/09/2026

Back to Basics: Making the Offer — It’s About More Than Price
Three Bullet Thursdays — Law You Need to Know

Last time in our Back to Basics series, we looked at the Buyer Representation Agreement and the relationship you establish with your Realtor.

Now you’ve found the house.

The next step is the offer — usually an Agreement of Purchase and Sale.

This is where things get serious. Once an offer is accepted, you generally have a binding contract to buy the property. And while everyone naturally focuses on the price, some of the most important parts of the deal may be found elsewhere in the agreement.

Here are three things buyers should understand.
1. An offer is much more than a price

The purchase price is obviously important, but an offer also deals with things such as the deposit, closing date, what is included or excluded, conditions, representations and warranties, and other terms of the transaction.

For example, are the appliances included? What about a rented hot-water tank? Is that backyard shed staying? When does the buyer get possession?

These details may seem secondary while you are negotiating the price, but they can become very important once the deal is firm.

Your Realtor will normally prepare and negotiate the offer with you. Read it carefully and ask questions about anything you don't understand before signing.
2. Conditions can provide important protection

Two of the most familiar conditions are financing and home inspection.

A financing condition can give a buyer time to confirm that satisfactory financing is actually available for the property.

A home-inspection condition can provide an opportunity to have the home's major systems and physical condition examined before becoming unconditionally committed.

Depending on the property and the circumstances, there can be other conditions as well — for example, the sale of the buyer's existing home, review of condominium documents, or another matter important to that particular transaction.

RECO specifically recommends that buyers consider conditions relating to mortgage financing, home inspection, the sale of an existing home, or other factors important to them.
3. A "clean" offer can be attractive — but understand what you're giving up

In a competing-offer situation, buyers sometimes consider removing conditions to make their offer more attractive.

That can be a legitimate negotiating decision. But it should be an informed one.

An unconditional offer generally means that if it is accepted, the buyer cannot simply change their mind because financing doesn't come through or an inspection later reveals a problem.

That is why the decision about conditions should be made carefully with your Realtor, taking into account the property, the market, the competition and your own circumstances.

The strongest offer is not necessarily the one with the fewest conditions. It's the offer that gives you the best chance of getting the home while keeping the level of risk appropriate for you.
Why this matters

Buying a home can become emotional — particularly when you've finally found the one or when several other buyers want it too.

That's exactly when the details of the offer matter most.

Your Realtor's job is to help you understand the market, structure and negotiate the offer, and protect your interests through that process. And where a particular term raises a legal issue or you are unsure about its legal effect, that's a good time to involve your real estate lawyer.
The bottom line

Price gets most of the attention. The rest of the offer determines the deal.

Know what you're signing, understand your conditions, and make a deliberate decision before giving up a protection simply to make an offer more competitive.

Dig Deeper:

RECO — Buyer's Checklist
https://www.reco.on.ca/consumers/information-for-buyers/buyers-checklist/

RECO — Home Inspections
https://www.reco.on.ca/consumers/information-for-buyers/home-inspections/

RECO — Competing Offers
https://www.reco.on.ca/consumers/information-for-buyers/competing-offers/
Coming next week

You made the offer — but how well do you really know the house you're buying?

Next week, we'll look at home inspections: what they can uncover, what they can't, and why the inspection condition can be one of the most important protections in your offer.

Three Bullet Thursdays — Law You Need to Know

Warm Regards,

John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

09/03/2026

Back to Basics: Starting the Home Search With Your Realtor
Three Bullet Thursdays — Law You Need to Know

School is back — and so is our Back to Basics series.

Over the next several weeks, we're going to walk through a real estate transaction from beginning to end, focusing on the documents, decisions and important steps buyers and sellers encounter along the way.

And there is no better place to start than with the professional who will usually guide a buyer through much of the process — their Realtor.

If you're working with a Realtor to buy a home, you will likely be asked to sign a Buyer Representation Agreement (BRA).

The BRA puts that professional relationship on paper. It sets out what the brokerage will do for you, how the relationship will work and what everyone can expect from each other as you search for and ultimately purchase a home.

Here are three things worth knowing.
1. It establishes your relationship with your Realtor's brokerage

A Buyer Representation Agreement formally establishes the relationship between you and the brokerage representing you. It covers important matters including the services the brokerage will provide, the properties and geographic area covered, compensation, the term of the agreement and how it can be terminated.

Here's an Ontario rule worth knowing: the BRA must have an expiry date, and that date must be prominently displayed on the first page and initialled by the buyer.

That's not fine print. It's a specific requirement designed to make sure buyers know how long they are committing to the relationship.

Why this matters: A good Realtor does considerably more than simply show properties. The BRA establishes the ground rules so both Realtor and buyer know what to expect as they work together to find the right home.
2. It explains how your Realtor's brokerage gets paid

The BRA also sets out how the brokerage will be compensated.

In most typical residential transactions, the compensation available from the seller is sufficient to cover the amount owing to the buyer's brokerage, so the buyer does not separately pay a commission out of pocket.

There can be exceptions. If the seller is providing less than the amount agreed to in the BRA, the buyer could potentially be responsible for some or all of the difference. That is not the usual situation, but it is a possibility buyers should understand.

Why this matters: Your Realtor can explain the compensation arrangement at the outset. For most buyers, an out-of-pocket commission will never become an issue — but everyone should understand how the brokerage is being compensated before the home search gets underway.
3. Your obligations may not necessarily end the day the BRA expires

This is one buyers may not expect.

A BRA can contain a holdover provision dealing with properties the buyer was introduced to while the agreement was in effect.

For example, suppose your Realtor introduces you to a particular home while your BRA is active. The BRA then expires, but you subsequently purchase that same property. Depending on the wording of the agreement, the original brokerage may still be entitled to compensation.

There is a sensible reason for this. A Realtor may have invested substantial time and expertise finding and introducing a property to a buyer, and the fact that the eventual purchase occurs shortly after the BRA expires doesn't necessarily erase that work.

Why this matters: When reviewing the BRA, don't look only at the expiry date. Ask your Realtor to explain the holdover provision and whether any obligations continue after the agreement ends.
The Bottom Line

A knowledgeable Realtor can be one of a buyer's most important resources in a real estate transaction.

The Buyer Representation Agreement isn't just another form. It is the document that defines that professional relationship and helps make sure everyone begins with clear expectations.

Take a few minutes to review it with your Realtor and ask questions about anything you don't understand.

It's about making sure you and your Realtor start the relationship with a clear, shared understanding.

And that's one of the best ways to get a good professional relationship — and a successful home search — off to a good start.
Dig Deeper

RECO — Signing a Contract with a Real Estate Brokerage
https://www.reco.on.ca/consumers/things-you-need-to-know/signing-a-contract-with-a-real-estate-brokerage/

RECO — Information Guide for Buyers and Sellers
https://www.reco.on.ca/consumers/things-you-need-to-know/reco-information-guide/?utm_source=chatgpt.com

Next Thursday: The Agreement of Purchase and Sale — when an offer stops being an offer and becomes a binding contract.

Three Bullet Thursdays — Law You Need to Know

Warm Regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766