Multiple Representation – Winding it up

Ontario

Question:

If a problem arises in multiple representation and it can only be resolved by winding it up, would then the Brokerage just end either of their Seller or Buyer agreements with one of the parties (keep one party as client and end the contract with other) or would the Brokerage choose to keep them as clients and introduce them to different parties like Seller to a different buyer; and Buyer to a different seller?

Answer:

Let’s assume that Bob is the Listing Agent and Bill is the Seller. Bob hosts an “open house” and Mary arrives and wishes to have Bob represent her and submit an Offer.

Bob’s first step is to seek permission from Bill to have Mary as a client.

If Bill refuses, then Bob may represent Mary in respect to any property available other than Bill’s. So, in this case, Bob still has Bill as a client.

Let’s assume that Bob misses the first step. He signs Mary up as a client. Now, he has two clients, both Bill and Mary. Bill refuses to agree! This conduct by Bob is actually a breach of his fiduciary obligations to Bill. Bill may terminate the Listing at this point.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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