Question:
RECO said that if you hold a personal interest, related to your seller or hold any interest in a corporation, you cannot represent a buyer if you are listing agent.
Answer:
The RECO Bulletin in respect to your own purchase or sale says:
“the agent could not represent the buyer/seller as the conflict of interest is too severe to manage”.
It would be difficult to imagine circumstances where the conflict would be sufficiently remote to permit representation. That would indeed be a rare fact situation.
However, the Bulletin says much the same when it comes to a related party selling their property through another agent. The RECO Bulletin says:
“The agent could not represent a buyer in the trade. Multiple representation requires a neutrality that is not possible in this situation.”
That interpretation appears to push matters perhaps a little too far.
Consider the parents’ property for sale through another agent. The property is a cottage up north. That’s why you didn’t get the Listing. But, a friend of yours hears about the property, has been there with you, on a number of occasions and wants to buy the property. In fact, they think that they will have an advantage in the upcoming bidding war, since you will be entitled to the cooperating commission.
So, your client wants you desperately to act for them since they are far more likely to be successful with you, than with anyone else. And, yes, they will sign the Acknowledgement.
Remember that this isn’t in the TRESA legislation. This is simply an “opinion” published by RECO in a Bulletin.
It is important to distinguish between two separate roles: 1) selling or buying a property for yourself, and 2) being related to someone who is buying or selling.
Brian Madigan LL.B., Broker