Trust starts before the offer. For real estate brokers, OREA Form 300 — the Buyer Representation Agreement — is the key to protecting your business, ensuring compliance, and building stronger client relationships.
This guide will walk you through Form 300’s key components, when you need it, related forms, and best practices for compliance under the Trust in Real Estate Services Act, 2002 (TRESA).
What Does Form 300 Do?
Form 300 creates a legally binding, exclusive agreement between a buyer and your brokerage. It sets out:
- The services you will provide as the buyer’s representative.
- The commission arrangement, including who pays and under what circumstances.
- The agreement’s geographic scope, time limits, and client-specific requirements.
This protects both the buyer (by clarifying your duties) and your brokerage (by formalizing commission rights).
Key Components of Form 300
To ensure accuracy and compliance, pay attention to these key sections:
- Representation Details: Define your exclusive relationship with the buyer and the services you’ll provide.
- Commission Arrangements: Specify commission rates, who pays, and under what conditions. This prevents disputes and supports accurate commission tracking.
- Geographic Boundaries: Define the search area where you’ll represent the buyer to avoid conflicts with other agreements.
- Time Period: Set start and end dates for the representation agreement.
- Required Information: Include buyer details, property types, price ranges, and any special terms or conditions.
When Should You Use OREA Form 300?
You should complete Form 300 before beginning any serious buyer representation activities. This means:
- Before showing properties to potential buyers
- Before providing access to detailed MLS data
- Before preparing or presenting any offers on behalf of buyers
- When formalizing your buyer representation relationship
Always provide the RECO Information Guide and explain agency options before signing the form to comply with TRESA.
Related OREA Forms
Form 300 often works alongside other OREA standard forms:
- Form 301 – Cancellation of Buyer Representation Agreement: Use when terminating the buyer representation relationship early.
- Form 302 – Assignment of Buyer Representation Agreement: Transfer the agreement when an agent moves to a different brokerage.
- Form 305 – Amendment to Buyer Representation Agreement: Modify terms like search areas, time periods, or commission arrangements.
- Form 310 – Buyer Representation Agreement (Non-Exclusive): A less common form where the buyer is not exclusively tied to one brokerage.
- Form 320 – Confirmation of Cooperation and Representation: Use alongside Form 300 to clarify cooperation with other brokerages in transactions.
Why Form 300 Helps With Your Business
Using Form 300 correctly prevents common issues:
- Commission Disputes: Provides enforceable written terms.
- Representation Confusion: Clearly establishes exclusivity with a client.
- Compliance: Meets TRESA requirements, including disclosure and rescission rights.
- Client Expectations: Outlines service boundaries and obligations upfront.
- Record Keeping: Creates proper documentation for brokerage files and accounting records. Partnering with real estate-focused bookkeeping professionals ensures these records are maintained accurately for compliance and financial oversight.
Tips for Success With OREA Form 300
To protect your business and serve clients effectively:
- Explain Clearly: Help buyers understand what they’re signing and how it benefits them. Use simple language and answer all questions.
- Review Carefully: Double-check all details before completion, including names, dates, and commission arrangements.
- Be Transparent: Clearly communicate your role, services, and any potential conflicts of interest.
- Document Everything: Keep detailed records of all buyer interactions and form completions.
- Stay Compliant: Ensure all forms meet current TRESA requirements and industry standards.
Conclusion
Using OREA Form 300 correctly establishes professional buyer representation relationships while protecting your business interests. Proper form completion and documentation help ensure transparency, compliance, and successful transactions for all parties involved.
Once the agreement is in place, your next priority is maintaining accurate records and financial oversight. Partnering with bookkeeping professionals who specialize in real estate ensures your brokerage’s compliance extends beyond forms and into the financial side of every transaction. For support with maintaining accurate real estate records and financial compliance, reach out to KP BOOKS CO today.
