14.1 Exclusive Buyer Representation & Due Diligence
Key Takeaways
Use the Consumer Relationships Guide and a signed written service agreement for residential buyer clients. Confirm the market, search criteria, duration, services, exclusivity and fee terms.
Use best efforts to locate suitable property and take reasonable steps to discover relevant facts. Keep the buyer’s search, finances and negotiation limits confidential under the applicable rules.
Discuss any cooperating payment and resulting buyer fee before the buyer makes a decision. Document a fee amendment with the relevant signatures.
For an unrepresented seller, explain buyer agency and obtain authorized access. Deal separately with customer acknowledgment, disclosure and any seller-paid fee.
If the same agent has competing buyer clients, disclose the conflict and explain options. Rule 54(3) requires informed written consent before providing services in the conflicted trade.
Define the search and agency relationship
Rule 43 requires a signed written service agreement on establishing a residential buyer client relationship. Use the Consumer Relationships Guide and required content. Choose a form that matches common-law or designated agency and the agreed scope. A buyer can agree to exclusive or non-exclusive representation. An exclusive agreement’s search terms matter when the buyer contacts other brokerages or finds a property independently.
| Search decision | What to confirm |
|---|---|
| Market and property | Identify geography, property type, intended use and deal-breakers. A home office or accessible entrance can be a material requirement. |
| Budget and timing | Ask about available cash, financing, possession and existing sale obligations. Refer financing questions to an appropriate professional. An early budget estimate is a starting point for the search. |
| Services and obligations | Agree on searches, alerts, touring, communication and how the buyer will report leads. Note any excluded property and existing representation. |
| Duration and fees | Use the start and end dates and times on the exclusive form. Explain payment triggers, retainer treatment if agreed, and any holdover. Use a signed written amendment before expiry if the parties agree to extend. Use a new agreement after expiry. |
Rules 58 and 58.1 require best efforts in locating suitable property, timely advice on available properties including other brokerages’ listings and known alternatives, and reasonable steps to discover relevant facts about a property the buyer is considering. Compare the listing with the buyer’s criteria and flag what remains to be checked. For example, a buyer needs an accessible entrance and an affordable monthly cost. Verify the entry route before booking the tour, check any condo charges and offer to arrange appropriate professional advice on modifications. Keep the buyer informed and assist with the documents and negotiations. Respect the buyer’s authorized information uses and Rule 44, including after the agreement ends. Designated agency information barriers also apply inside the brokerage.
Work through any gap between the buyer’s needs and the plan before touring. Suppose a buyer needs step-free entry by September, has an estimated borrowing limit and is counting on proceeds from an unsold home. Confirm which access features are essential, how much cash is available for the deposit and closing costs, and what happens if the sale closes later than expected. Help the buyer compare a lower-price property, a later possession date and an offer with financing or sale-of-property protection. Ask an authorized lender about the actual approval and the buyer to confirm the acceptable timeline and trade-offs. Record the agreed priorities and revisit them if financing, timing or available properties change.
Compare the properties and their surroundings
Use the buyer’s priorities to decide what to research. A condominium near a frequent bus route may reduce transport costs and maintenance work for one buyer, while another needs a garage, private outdoor space or fewer use restrictions. Compare the full costs and rights. A seller choosing what to highlight can verify useful features such as an accessible route or nearby recreation, and explain limits such as parking rights or association charges accurately.
Compare the building layout and the ownership separately. A detached home has no adjoining dwelling, a semi-detached home shares a wall with one neighbour, and a row townhouse is one of several attached homes. An apartment-style unit may have units above or below it. A townhouse can be held as a fee-simple lot or as a condominium unit. Check the title and plan before promising control of an exterior, a yard or a parking stall.
A bungalow typically puts its main living space on one level. A split-level puts rooms on staggered floors, so verify actual steps from entry to the bedroom and bathroom. An apartment with an elevator may suit a buyer who wants fewer stairs, provided the full route is accessible and the bylaws and costs fit. A seller can show the verified floor layout, parking and maintenance obligations so buyers can compare the real trade-offs. Apply the RMS separately to report the area of each eligible level.
| Buyer question | Evidence to obtain |
|---|---|
| Can I get to work, school or a recreation facility? | Check transit schedules and stop access at actual travel times, the municipal park or pathway map and the walking route. For school assignment, search the school authority’s current address, program and grade information. |
| Could surrounding construction change access or traffic? | Review the municipal application and plans, distinguish proposed work from approvals and confirm any timing that matters with the responsible authority. Visit at relevant times to check current traffic, noise and crossings. |
| What can public safety data tell me? | Share dated police or municipal figures with their boundary, reporting period and limits. A reported incident count cannot predict safety at one home. Discuss features relevant to the buyer’s stated needs and avoid assumptions about the people who live in an area. |
A listing says a home is within walking distance of a school and a step-free transit route. Check the school designation and walk or otherwise verify the route from the front door to the stop, including grades and crossings. If listing data and official information disagree, keep both source dates, ask the responsible authority to clarify, and identify what the buyer still needs to check. A short side-by-side record can distinguish what was verified, where it came from and what it means for the buyer’s decision.
Statistics Canada dwelling types · RECA measurement and residential styles · Calgary Board of Education school designations · Calgary Transit rider tools · Calgary development application map · Calgary community safety data
Work the fee and holdover terms
The signed fee terms govern who owes the brokerage, what payments or retainers are credited and when any shortfall is due. Suppose a buyer’s agreement specifies 3.5% on the first $100,000 and 1.5% on the remaining $500,000 of a $600,000 sale. The agreed fee is $3,500 + $7,500 = $11,000 before GST. The available cooperating payment is 2.5% on the first $100,000 and 1% on the remainder, or $2,500 + $5,000 = $7,500. If credited under the agreement, the pre-tax difference is $3,500.
Explain the shortfall and options before the buyer commits. The buyer may pay as agreed. With instructions, negotiate an explicit seller contribution in the purchase contract. The brokerage and buyer may also agree to amend the fee in a signed writing under Rule 43. Review timing, taxes, any retainer and how the chosen option is documented. Show suitable properties according to the buyer’s needs and Rule 58. Compensation alone does not determine which properties to bring to the buyer’s attention.
The RECA designated buyer sample clauses 8.3 and 8.6 illustrate holdover. The first applies to a binding contract within the agreed period for a property introduced by the brokerage during the term. The second lists a property excluded in writing and a later buyer representation agreement signed with another brokerage within the period specified for that exception. The contract supplies the dates and treatment. A new contract with a different brokerage may have distinct terms.
Arrange a viewing with an unrepresented seller
Identify yourself as the buyer’s agent at the earliest reasonable opportunity. Get permission to enter from the owner or authorized representative and comply with its limits. Record permission according to brokerage policy and confirm any separate tenancy notice requirements. Rule 60 allows a customer status acknowledgment. Use required form content where applicable, give the Guide and follow Rule 55’s written relationship disclosures when triggered. Use best efforts to obtain written acknowledgment of those disclosures. Explain that you represent the buyer and can provide limited assistance to the seller. If the seller agrees to pay the buyer’s brokerage, document it using the applicable fee agreement or agreed contract term. Access permission and a fee arrangement serve different purposes.
Respond to competing buyer clients
A common-law brokerage representing two buyers who want the same property has a conflict. In designated agency, the same designated agent representing both creates a conflict. With separate designated agents, check the information barriers and any other actual conflict. If a conflict exists, explain it to both clients promptly without revealing either buyer’s private details, describe their options and give them an opportunity for independent advice. Rule 54(3) requires each affected party’s informed written consent before services in the conflicted trade. If both consent and continued service is appropriate, document its limits. The agent cannot use one buyer’s confidential terms to help the other. If suitable arrangements are unavailable, stop the conflicted work and involve the broker in arranging independent representation. Rules 59 and 59.1 address the distinct situation of a buyer and seller represented on the same property.
RECA Rules · RECA designated-agency buyer sample · Access to Property · RECA competing-buyer guidance
A buyer’s contract makes them responsible for any shortfall. On a $600,000 purchase the agreed fee is 3.5% on the first $100,000 and 1.5% above that. The credited cooperating payment is 2.5% on the first $100,000 and 1% above that. What should the agent explain before the buyer commits?
The $3,500 pre-tax shortfall is payable as agreed unless a seller contribution or a signed brokerage fee amendment changes the amount the buyer must pay.
The listing brokerage must increase its payment by $3,500.
The buyer owes nothing because the home was marketed on a listing service.
The agent may add the amount to the mortgage application without disclosure.
An unrepresented owner offers to show a house to your buyer client. The buyer’s fee terms already address how the brokerage will be paid. What should you do before entering?
Enter on the strength of a private sale sign and disclose your role after the tour.
Explain whom you represent, get the owner’s permission and follow any access restrictions and applicable Guide and disclosure duties.
Insist the seller pay your brokerage’s fee before any showing can occur.
Require the seller to list with your brokerage first.
The same designated agent learns that two of their buyer clients intend to offer on one home. Each has privately shared a maximum price. How should the agent respond?
Prioritize the buyer who first visited the property.
Give each buyer the other buyer’s limit so they can compete openly.
Disclose the conflict and options without revealing confidences. Proceed with conflicted services only with informed written consent and an appropriate scope, or arrange independent representation with the broker.
Use a buyer-and-seller transaction brokerage form for the two buyers.
Sections you finish are checked off in the contents.