In Ontario, what is required when a brokerage wants to represent both parties in a multiple representation scenario?
Correct Answer
B) Disclosure to both clients and their written consent
O. Reg. 567/05 s. 22(1) bars a brokerage from representing more than one client in the same trade unless it discloses the multiple representation and the differences in duties, services and remuneration to each client, and each client consents in writing. The brokerage must also make best efforts to obtain a written acknowledgement that the disclosure was received, but that acknowledgement is a best-efforts step; the written consent is mandatory.
Why This Is the Correct Answer
This answer is correct because s. 22(1) makes disclosure to each client and each client's written consent the conditions for a brokerage to represent more than one client in the same trade. Without both, the brokerage may not act for both parties.
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