Under Ontario's Trust in Real Estate Services Act, 2002 (TRESA), what is required before a brokerage may represent both the buyer and the seller in the same trade?
Correct Answer
B) Disclosure to both clients and each client's written consent
Under O. Reg. 567/05 s. 22, a brokerage may represent more than one client in the same trade only after it discloses to each client the multiple representation and the differences in duties, services and remuneration, and each client consents in writing. The brokerage must then treat both clients objectively and impartially. The old Real Estate and Business Brokers Act no longer applies.
Why This Is the Correct Answer
This answer is correct because disclosure to each client followed by each client's written consent is exactly what s. 22(1) of O. Reg. 567/05 makes a condition of a brokerage representing more than one client in the same trade.
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Previous Question
Under Ontario's Trust in Real Estate Services Act, 2002 (TRESA), what can happen if a salesperson fails to disclose to their client a material fact that they knew or should have determined?
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Under TRESA's regulations, an Ontario brokerage represents a seller and is also providing services to a buyer who has made a written offer on the property. When must the brokerage disclose this to every other buyer who makes a written offer?