In Ontario, what is required when a real estate salesperson wants to purchase a property listed by their own brokerage?
Correct Answer
A) Written notice to the seller, acknowledged in writing by the seller
TRESA s. 32 bars a registrant from buying, or offering to buy, an interest in real estate unless the registrant first delivers written notice to the other parties and they acknowledge receipt in writing. The notice must state that the buyer is a registrant, disclose all facts within the registrant's knowledge that affect the property's value, and give particulars of any planned resale. Because the salesperson's brokerage represents the seller, the brokerage must also manage the conflict under Code of Ethics s. 13.
Why This Is the Correct Answer
This answer is correct because TRESA s. 32 requires written notice to the seller before the salesperson makes an offer, and the seller must acknowledge receipt of it in writing. The notice identifies the buyer as a registrant and discloses every fact the salesperson knows that affects the property's value.
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