A listing brokerage represents the seller, and a competing offer arrives from a buyer who is also a client of the same brokerage. Neither client has a designated representation agreement. What disclosure and consent requirements must be met?
Correct Answer
B) Disclose the multiple representation to both clients and get written consent
Without designated representation, the brokerage itself represents both clients, so O. Reg. 567/05 s. 22 applies: the brokerage must disclose that it proposes to represent both, explain the differences in duties, services and remuneration, and get each client's written consent. It must then treat both clients objectively and impartially. Under s. 22.0.3 it must also tell every other buyer who makes a written offer that it serves a buyer in this trade.
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