An Alberta brokerage has agency relationships with both a seller and a buyer who wants that seller's property. Under the RECA Rules, how can the brokerage act for both parties in this trade?
Correct Answer
B) Only under a written transaction brokerage agreement with both, acting as a neutral facilitator
Rule 59(1) of the RECA Rules lets the buyer, the seller and the brokerage enter into a written transaction brokerage agreement for that property, after the brokerage gives both a chance to review it (Rule 59(2)). Under it, the brokerage treats both even-handedly and impartially and provides facilitation services without confidential advice or advocacy for either party (Rule 59(4)). If they do not agree, the brokerage keeps only the client it represented first (Rule 59(3)).
Why This Is the Correct Answer
The RECA Rules allow a brokerage with clients on both sides to proceed only by a written transaction brokerage agreement signed by the buyer, the seller and the brokerage (Rule 59(1)). Under it the brokerage acts as a neutral facilitator for both and advocates for neither (Rule 59(4)).
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