Under TRESA, when must a brokerage disclose that it represents both the buyer and the seller in the same transaction?
Correct Answer
D) Before it represents both, with each client consenting in writing
O. Reg. 567/05 s. 22(1) says a brokerage shall not represent more than one client in the same trade unless it has disclosed the multiple representation, including the differences in duties, services and remuneration, to each client and prospective client, and each has consented in writing. The rule is tied to the start of the dual role, not to a deadline measured from an offer.
Why This Is the Correct Answer
This answer is correct because s. 22(1) prohibits a brokerage from representing more than one client in the same trade unless the disclosure has been made and each client has consented in writing. The disclosure and consent must therefore be in place before the brokerage represents both.
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