We have recently been discussing Form 100 and the fact that it has not been updated to include Designated Representation since TRESA.
That’s been the case for over a year, and during that time period, most Brokerages and registrants have opted for Designated Representation.
Updating Notices Provision
It is Paragraph 3: Notices which requires the update.
Updating Options
There are many potential solutions, including:
- Attach a Notices provision to the Confirmation of Cooperation and Representation,
- Amend Form 100 by including a specified authorization to (for example) email the agent directly,
- Amend Form 100 by updating the Notices Paragraph, in Schedule “A”,
- Add an Amended Schedule “B” to the Listing, and ensure that the Schedule “B” was attached.
You could also use a combination of the above to reach the result.
Agent’s Negligence
As a registrant, you run the risk of not having an enforceable contract for your client. You can always state that “everbody’s doing it”. However, there is an expectation that:
- You will have read the TRESA Legislation
- You will have read the various documents after 12 months
If this “no contract’ issue materializes, is it your own client’s fault? Is that your argument in defence of your involvement?
The “no contract” argument has yet to be placed before the Courts. Assuming it reaches the Superior Court of Justice either on a Motion for Judgment (in about 9 to 12 months) or a Trial (24 to 36 months), it is a matter which involves the interpretation of the law, and that enables the unsuccessful party automatically to appeal to the Ontario Court of Appeal. That takes another 12 to 18 months following the first decision.
So, the litigation is time consuming and operates significantly to the detriment of one of the parties by reason of the expense and long delay. That generally means that a settlement will be reached which will not favour that particular party.
Accordingly, be careful. Protect yourself and your client.
Brian Madigan LL.B., Broker