In Ontario, what information must be disclosed when a brokerage represents both the buyer and the seller in the same transaction?
Correct Answer
C) Multiple representation and its implications
Under O. Reg. 567/05 s. 22, made under the Trust in Real Estate Services Act, 2002 (TRESA), a brokerage may represent both buyer and seller in the same trade only after disclosing to each client the fact of multiple representation and the differences in the duties it would owe, the services it would provide and its remuneration arrangements, and after each client consents in writing. The superseded Real Estate and Business Brokers Act no longer governs this.
Why This Is the Correct Answer
This answer is correct because s. 22(2) of O. Reg. 567/05 requires the brokerage to disclose the fact of multiple representation and its implications, meaning how its duties, services and remuneration differ when it represents more than one client. Each client must receive this disclosure and consent in writing before the brokerage acts for both.
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