By Farah Khan, Broker, Pontis Realty Inc., Brokerage. Last updated October 23, 2026.
The biggest red flags when hiring a real estate agent in Ontario are: no RECO registration, pressure to sign an agreement nobody has explained, no RECO Information Guide, a list price far above comparable sales, no recent local sales to show, poor communication, undisclosed multiple representation, vague claims about “other offers,” and fees that aren’t in writing. Each one has a simple check, covered below.
Most agents do good work, and a single slow reply doesn’t make someone a bad fit. These nine signs are different: each one points to a habit or a rule that can cost you money or leave you unprotected. For every flag you’ll see what it looks like, why it matters, and what good practice looks like instead. If you’re still choosing, pair this with our list of 15 questions to ask a realtor in Toronto.
9 Real Estate Agent Red Flags to Watch For
Flags 1 to 3 and 9 apply to everyone. Flags 4 and 5 matter most to sellers; flag 8 matters most to buyers.
1. They Aren’t Registered With RECO, or Are Vague About Their Brokerage
What it looks like: No registration number on their card or site, a brokerage name that changes, or “I work independently.”
Why it matters: Every Ontario agent must be registered with the Real Estate Council of Ontario (RECO) and employed by a registered brokerage. An unregistered person has no legal right to trade, and your deposit and agreement run through the brokerage.
What to do instead: Search their name on RECO’s Agent/Brokerage Search. Confirm the status says “Registered,” the brokerage matches, and check for discipline history. Our realtor vs broker guide walks through each step.
2. They Push You to Sign Before Explaining the Agreement
What it looks like: A representation agreement slid across the table at the first showing, with “it’s just standard” as the explanation, and no room to change the term, fee or holdover.
Why it matters: Under TRESA, a brokerage needs a written representation agreement before providing client services. That agreement sets your fee, how long you’re committed and whether a holdover clause leaves you owing a fee after it expires. Commission, term and holdover are all negotiable.
What to do instead: Take the agreement home. Read the expiry date, scope, fee, holdover period and termination terms, and ask for changes before you sign.
3. You Never Received the RECO Information Guide
What it looks like: You’ve been sent listings or advice, but nobody gave you or explained the RECO Information Guide.
Why it matters: Since December 1, 2023, agents must provide and explain the guide before giving services to a client or assistance to a self-represented party. It explains your options, how multiple representation works and how to raise a complaint. Skipping it suggests other steps may be skipped too.
What to do instead: Ask for it before going further. A good agent sends it at the start and walks you through what it means for you.
4. They Suggest a List Price Far Above the Comparables
What it looks like: One agent’s price opinion is well above everyone else’s, with little sold data behind it.
Why it matters: An inflated number can win the listing, but overpriced homes tend to sit, and price cuts later can leave buyers wondering what’s wrong. List prices aren’t approved by anyone, so the only real test is recent comparable sales.
What to do instead: Ask each agent for a comparative market analysis showing recent sold homes like yours, with the adjustments explained. Choose the reasoning, not the biggest number. See how we approach pricing on our selling a home page.
[CONFIRM: anonymized example of a seller who came to Farah after an overpriced listing sat, 2 to 3 sentences.]
5. They Can’t Show Recent, Verifiable Sales in Your Area
What it looks like: Talk of awards, “top 1%” rankings or career totals, but no specifics about homes like yours in your neighbourhood.
Why it matters: A Leaside semi, a Liberty Village condo and a Scarborough detached house are different markets. General success doesn’t prove local judgment.
What to do instead: Ask for recent deals in your area, property type and price range. A confident agent can name them and explain what they learned.
6. Communication Is Slow, Vague or Has No Backup Plan
What it looks like: Missed calls during an offer week, answers that dodge the question, or a part-time schedule with nobody covering.
Why it matters: Toronto deals often turn on a single evening. A missed message can mean a missed house or an offer that expires unanswered.
What to do instead: Agree up front on how and when you’ll hear from them, and who covers if they’re unavailable. Then watch whether they keep to it during the first week.
7. Multiple Representation or Conflicts Aren’t Clearly Disclosed
What it looks like: The listing agent offers to “help you with the offer too” without explaining what changes, or you find out late that your agent has a personal stake in a property.
Why it matters: Under TRESA, a brokerage can represent more than one client in the same deal only after disclosing what it means and getting informed written consent from every client. A general mention in the guide or forms isn’t the same as disclosure when it actually arises. Conflicts of interest also need disclosure and written consent before the agent continues.
What to do instead: Ask how your brokerage handles multiple representation before you sign. If it comes up, expect a specific written disclosure, and remember you can say no.
8. Pressure Tactics About “Other Offers”
What it looks like: “There’s a lot of interest, you’d better go higher,” with no numbers, or a listing agent hinting at details of competing offers.
Why it matters: Since July 1, 2015, Ontario agents can’t imply an offer exists unless it’s in writing and signed, and brokerages must keep copies of all offers. The seller’s agent must tell everyone who has made a written offer how many competing offers there are. Offer content can only be shared if the seller directs it in writing, and then it must go to everyone making an offer.
What to do instead: If you’ve made an offer, ask for the number of competing offers. If you doubt the answer, you or your agent can ask RECO to confirm the number of offers through its online complaint process. More on preparing for offer night is in our guide to buying a home in Toronto.
9. Fees and Services Aren’t in Writing
What it looks like: “Don’t worry, we’ll sort the commission out later,” or a promise of professional photos and staging that never appears in the agreement.
Why it matters: RECO advises that if a service isn’t in your agreement, you shouldn’t assume it will be provided. The fee and how it changes must also be written down.
What to do instead: Get every service you’re counting on and the full fee written into the agreement or a schedule attached to it.
Red Flags vs Green Flags: What Good Practice Looks Like
| Area | Red flag | Green flag |
| Registration | No RECO number, unclear brokerage | Shares RECO number and brokerage unprompted |
| Agreement | “Just sign, it’s standard” | Explains each clause; open to changes |
| Information Guide | Never mentioned | Provided and explained at the start |
| Pricing | Highest number, thin evidence | CMA with recent sold comparables |
| Local proof | Rankings and awards | Recent deals like yours, by area |
| Communication | Slow, vague, no backup | Agreed schedule and a named backup |
| Multiple representation | Mentioned casually, if at all | Written disclosure and consent when it arises |
| Offers | Vague “lots of interest” | Exact count to everyone who made a written offer |
| Fees and services | “We’ll figure it out later” | Everything in the agreement or a schedule |
Already Hired an Agent? What You Can Do
If the warning signs showed up after you signed, you still have options:
- Write it down. Note dates and keep the emails, texts and documents that show the problem.
- Raise it with your agent. Some issues are misunderstandings that a direct conversation fixes.
- Talk to the broker of record. RECO says this is often the best place to start, though you don’t have to before filing a complaint.
- Reread your agreement. Check the expiry date, termination terms and holdover clause. Ending early usually needs the brokerage’s agreement or a termination clause, so ask for a mutual release if the relationship isn’t working, and get legal advice on the terms.
- File with RECO if needed. Use RECO’s online complaint form or call 416-207-4800 or 1-800-245-6910. The agent or brokerage must respond to the allegations.
Work With a Broker Who Shows You the Numbers
Good practice is easy to recognise once you know the rules. I price homes with a comparative market analysis rather than the number a seller hopes to hear, and you work with me directly, not a call centre or large team. [CONFIRM: one or two sentences on how Farah explains the representation agreement and multiple representation to new clients.]
If you’re buying or selling with a real estate broker in Toronto and want a second opinion, book a private consultation or request a free home valuation. You can also call or WhatsApp +1 416-998-3890.
Real Estate Agent Red Flags: FAQ
What Should a Realtor Never Do?
A realtor should never trade without RECO registration, claim an offer exists unless it’s written and signed, share competing offer details without the seller’s written direction, represent both sides without your informed written consent, or steer buyers away from homes because of the commission offered.
Can a Realtor Represent Both the Buyer and the Seller in Ontario?
Yes, but only with informed written consent from both clients after the brokerage has explained what multiple representation means for them. You don’t have to agree. Under designated representation, separate agents at the same brokerage can represent each side, which reduces how often multiple representation comes up.
How Do I Know If There Really Are Other Offers on a House?
If you’ve made a written offer, the seller’s agent must tell you how many competing offers there are, and only written, signed offers count. If you doubt the number, you or your agent can ask RECO to confirm it through its online complaint process, including the property address.
Can I Fire My Real Estate Agent in Ontario?
You can ask, but a representation agreement is a contract, so ending it early usually takes the brokerage’s agreement or a termination clause. Start with the broker of record and request a mutual release. A holdover clause may still apply to properties introduced during the term, so get legal advice on the terms.
How Do I File a Complaint Against a Realtor in Ontario?
Submit RECO’s online complaint form with the agent’s name, brokerage and your evidence, or call 416-207-4800 or 1-800-245-6910. RECO suggests raising concerns with the broker of record first, though it isn’t required. The agent or brokerage must respond to the allegations.
About the Author: Farah Khan, Real Estate Broker
Farah Khan, Broker, Pontis Realty Inc., Brokerage
Farah Khan is a real estate broker registered with RECO, helping buyers and sellers across Toronto and the GTA with residential and commercial real estate since 2012. Clients work with her directly, from the first pricing conversation to closing. [CONFIRM: RECO registration #XXXXXXX] [CONFIRM: “Farah is a REALTORĀ® and member of TRREB and CREA” only if true]. Verify her registration on the RECO public register. Read more about Farah.