In Ontario, a buyer with no representation asks the listing brokerage, which already represents the seller, to represent the buyer too in buying the property. The brokerage does not use designated representation. What must happen under TRESA and O. Reg. 567/05?
Correct Answer
A) Disclosure to both clients and their written consent before representing both
O. Reg. 567/05 s. 22 under TRESA says a brokerage shall 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 prospective client, and each consents in writing. So disclosure and written consent must come before the brokerage represents both the seller and the buyer.
Why This Is the Correct Answer
This is correct because s. 22 of O. Reg. 567/05 prohibits the brokerage from representing both the seller and the buyer unless it first discloses the multiple representation and its effects to each and each consents in writing.
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