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?

Correct Answer

A) Each client must receive disclosure and consent in writing to the multiple representation

Under O. Reg. 567/05 s. 22, a brokerage may not represent more than one client in the same trade unless it discloses that fact and the differences in its duties, services and remuneration to each client, and each client then consents in writing. Here the brokerage itself represents both seller and buyer, so the rule applies no matter which salespeople do the work, and all of them must treat both clients objectively and impartially.