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.
Why This Is the Correct Answer
This answer states what s. 22 requires when one Ontario brokerage represents both the seller and a buyer in the same trade: disclosure to each client of the multiple representation and how duties, services and remuneration change, followed by each client's written consent. Both clients, not just the seller, must receive the disclosure and consent.
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