Registrant’s “Related” Disclosure in Ontario

Related Party Transactions -

Question:

Property owned by a son and his mother The son also happens to be the Son-in-law of the registrant. Is that related party and calls for disclosure in Ontario?

Answer:

Yes and No. It depends upon the question.

No: Assuming that this is a listing, then, the disclosure need not be made to prospective Purchasers. So, no need to mention it in the MLS.

Yes: Upon the assumption that the registrant is the Listing agent and an interested Buyer comes through, then whether they elect client services or customer services, disclosure of the “related party” issue needs to be made. If a Buyer has their own agent, then no disclosure need be made, just if there is a “relationship” of some sort.

Be sure to look to the Act and the Code for the answer. Unfortunately, OREA combined two separate obligations in one Form which makes matters quite confusing. Many registrants often look to the Form for the answer rather than the law as the source.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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