In Ontario, under what circumstances can a brokerage represent both the buyer and the seller in the same transaction?
Correct Answer
D) When both parties provide informed written consent after full disclosure
O. Reg. 567/05 s. 22 lets an Ontario brokerage represent more than one client in the same trade only if it discloses the multiple representation and the differences in duties, services and remuneration to each client, and each client then consents in writing. After that, it must treat both clients objectively and impartially. Family ties and price have nothing to do with the rule.
Why This Is the Correct Answer
This answer states the Ontario rule in s. 22: full disclosure of the multiple representation and of the differences in duties, services and remuneration, followed by each client's written consent. Once those conditions are met, the brokerage may act for both, treating each objectively and impartially.
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