In a complex multiple representation scenario in Ontario, Broker A represents the seller, Agent B from the same brokerage has a buyer representation agreement with the buyer, but Agent C from the same brokerage actually shows the property and writes the offer. What disclosure obligations exist?

Q: What is the correct answer to: In a complex multiple representation scenario in Ontario, Broker A represents the seller, Agent B from the same brokerage has a buyer representation agreement with the buyer, but Agent C from the same brokerage actually shows the property and writes the offer. What disclosure obligations exist?

The correct answer is Multiple representation disclosure is required to both parties, and all agents involved must ensure proper disclosure and consent procedures are followed. Option B is correct because under REBBA 2002 and TRESA, multiple representation occurs when any agents within the same brokerage represent both buyer and seller, regardless of how many agents are involved or their specific roles. All agents have a duty to ensure proper disclosure is made to both parties at the earliest practical opportunity, and written consent must be obtained from both parties before proceeding. The involvement of multiple agents doesn't change the fundamental disclosure obligations.

Q: What background knowledge is needed for this Residential Trading question?

Multiple representation under REBBA 2002 and TRESA occurs when a brokerage represents both buyer and seller in the same transaction, creating potential conflicts of interest. This applies regardless of whether one agent or multiple agents within the brokerage are involved. Key requirements include: disclosure at the earliest practical opportunity, written consent from both parties, and ongoing obligations to treat both parties fairly. The legislation recognizes that the brokerage entity, not individual agents, holds the representation relationship, so any configuration of agents within that brokerage serving both sides triggers multiple representation obligations.

Q: What is a good way to remember the answer to this Residential Trading question?

Remember 'SAME' - when the SAME brokerage represents both sides, multiple representation exists regardless of how many agents are involved. Think of it like a restaurant - whether one server or three servers handle your table, you're still being served by the SAME restaurant. When you see questions about multiple agents from one brokerage, immediately think 'SAME brokerage = multiple representation = disclosure required to ALL parties.' Don't get distracted by the number of agents involved.

Q: What exam tip applies to this Residential Trading question?

Focus on the brokerage, not the individual agents. If any agents from the same brokerage represent both sides, multiple representation exists and disclosure is required to both parties at the earliest practical opportunity.

Q: How does this Residential Trading concept apply in real world practice?

A large brokerage has a listing agent for a property, a buyer's agent with a signed agreement, and a showing agent who handles weekend showings. When the showing agent writes an offer for the buyer, multiple representation exists because all three agents work for the same brokerage. The brokerage must ensure both buyer and seller receive proper disclosure and provide written consent before proceeding, regardless of which specific agents handled which tasks.

Question

Residential TradingMultiple RepresentationONHARD

In a complex multiple representation scenario in Ontario, Broker A represents the seller, Agent B from the same brokerage has a buyer representation agreement with the buyer, but Agent C from the same brokerage actually shows the property and writes the offer. What disclosure obligations exist?

Answer Options

A

Only Agent B needs to disclose multiple representation to their buyer client

B

Multiple representation disclosure is required to both parties, and all agents involved must ensure proper disclosure and consent procedures are followed

C

No disclosure is required since different agents are involved

D

Only the broker needs to provide disclosure after the offer is accepted