In Ontario, Agent John represents a seller and his colleague Agent Mary, from the same brokerage, represents a buyer for the same property. Both clients signed ordinary brokerage representation agreements, not designated representation agreements. What does O. Reg. 567/05 require?
Correct Answer
A) Disclosure to both clients and each client's written consent to multiple representation
Under a brokerage representation agreement the client is represented by the brokerage, so the brokerage represents both the seller and the buyer in the same trade. O. Reg. 567/05 s. 22 bars this unless the brokerage discloses the multiple representation and how its duties, services and remuneration differ to each client, and each client then consents in writing. The brokerage must also make best efforts to get a written acknowledgement of the disclosure and must treat both clients objectively and impartially.
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Previous Question
In a complex multiple representation scenario, Agent A represents the seller, Agent B represents the buyer, but both agents work for the same brokerage. The buyer wants to submit an offer $20,000 below asking price. How should this confidential information be handled?
Next Question
An Ontario brokerage that does not use designated representation has a seller representation agreement, handled by Broker A. Salesperson B of the same brokerage has a buyer representation agreement with a buyer, and Salesperson C of the brokerage shows the property and writes the buyer's offer. What disclosure obligations exist?