An Ontario brokerage represents a buyer interested in a home being sold by a self-represented seller. The brokerage will give the seller some help with the paperwork. Under TRESA's regulations, when must the brokerage give the seller the required disclosure that it represents the buyer?
Correct Answer
D) Before providing the seller with any assistance
O. Reg. 567/05 s. 13.1 requires a brokerage that represents a client in a trade and assists a self-represented party in the same trade to give that party, before providing the assistance, a disclosure that it represents a client, an explanation of the risks, a description of the assistance it may provide and a recommendation to seek independent professional advice, in the form RECO sets. The old 'first practical opportunity' test from the repealed REBBA Code of Ethics no longer applies.
Why This Is the Correct Answer
This answer is correct because s. 13.1 of O. Reg. 567/05 requires the disclosure to be given before the brokerage provides any assistance to the self-represented seller. The seller must know who the brokerage represents, and the risks, before relying on anything the brokerage does.
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