Acquiring a Property in Ontario by a Registrant

Question:

I am an Agent. Is there any benefit of putting it through my brokerage?

Answer:

There is no legal obligation to place it through your Brokerage unless it so provides in your contract with your Brokerage.

The Registrant’s statement under s.32 of the Act must be delivered to the Seller. It must also be provided to your own Brokerage. So, in that regard they will know about it.

Failure to deliver it to the Seller is foolhardy since that failure offers the Seller the right of rescission. That means that the Seller can reverse the transaction even after closing. That might not be good! Failure to deliver it to your own Brokerage is a breach of your independent contractor agreement, and is subject to RECO discipline. The charges that would apply are covered in your contract.

The exception to go a route other than the Brokerage only exists with “independent contractor status”. If someone is truly an “employer” then they would be precluded from placing the transaction through another Brokerage, however, they could still complete the disclosure and opt for no representation at all.

Also, the E&O insurance issue is important and would not cover you unless there was a commission payable in the transaction, no matter how small.

Brian Madigan LL.B., Broker

www.OntarioRealEsatteSource.com

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