This is the Multiple Representation and Designated Representation paragraph:
“3. MULTIPLE REPRESENTATION AND DESIGNATED REPRESENTATION: The Seller understands and acknowledges where both the Seller and buyer are represented by a designated representative of the Listing Brokerage, multiple representation will not result, unless that designated representative represents more than one client in the same trade, and will require consent in writing for such multiple representation. In the event of multiple representation and designated representation, the Brokerage duty of disclosure to both the seller and the buyer client is as more particularly set out in the agreement with the respective seller or buyer.”
Review
Set out below and marked in bold and italics are those words that are inserted by me to assist in the review. They are not set out in the clause itself. Let’s look at that paragraph in a little more detail:
3. MULTIPLE REPRESENTATION AND DESIGNATED REPRESENTATION:
Acknowledgement
The Seller understands and acknowledges where both the Seller and buyer are represented by a designated representative of the Listing Brokerage,
multiple representation will not result,
Same DR for Both Clients
unless that designated representative represents more than one client in the same trade,
Consent Required
and will require consent in writing for such multiple representation.
Disclosure Requirements
In the event of multiple representation and designated representation,
the Brokerage duty of disclosure to both the seller and the buyer client is as more particularly set out in the agreement with the respective seller or buyer.
COMMENT
This is usually the multiple representation by accident scenario. Two clients both listed with the same Brokerage, two different representatives. Clients can switch if they like to Designated Representation and the potential conflict is avoided.
If they both wish to proceed with the same real estate agent, then, consent will be required and the previously discussed disclosure obligations shall apply.
Brian Madigan LL.B., Broker