Is a BRA which Omits the “Brokerage” Enforceable? (Ontario)

Hospice and the Unknown - Hospice Matters

Question:

The client wants out of the BRA. I looked at it and it doesn’t include the name of the Brokerage. Is that enforceable?

Answer:

It is quite possible to have a contract which is entered into on behalf of an undisclosed principal.

Having said that, this is highly irregular. There should be very special circumstances here to make this work, but, if there aren’t, then it’s probably unenforceable. One of the essential terms of a contract is that you require “two parties”.

If it’s commercial then quite possibly it may be enforceable, but we would need a very good reason to justify the arrangement in including full disclosure. Perhaps, Agent Bob says I am switching Brokerages, and I can’t be sure whether it’s ABC or XYZ.

If it’s residential it would require a very significant and so far we have an unknown explanation.

There may be some opportunities to terminate the BRA under the Consumer Protection Act as well as the common law.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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