Notices in Multiple Representation Situations

Should Real Estate Contracts Allow Notices By Email?

Question:

Clause 3 (Representation) of the Listing Agreement? “Where a Brokerage represents both the Seller and the Buyer (multiple representation), the Brokerage shall not be entitled or authorized to be agent for either the Buyer or the Seller for the purpose of giving and receiving notices.” I’ve never quite understood it.

Answer:

You really can’t give notice to yourself, fax something to yourself or email something to yourself.

Here’s the rationale.

The delivery and the receipt of notices is in issue. Timing is the problem. If the Buyer signs a Waiver, when do you have it “for the Seller”? How long can the Buyer “call it back”?

Since timing is critical with respect to contract management, this matter has to be set aside and the parties have to do this themselves.

You can be the courier, but you can’t be the “recipient”.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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