This particular topic remains after TRESA was introduced. It was a problem and it’s still a problem. It just occurs less frequently.
Have a look at RECO’s August 2025 publication:
“Legal corner: Multiple clients in the same trade leads to unfair competing offer process
A recent case highlights the importance of disclosing when a brokerage has both a seller client and one or more buyer clients in the same trade, even if the clients are represented by different representatives. Failure to disclose can result in penalties under the Trust in Real Estate Services Act, 2002 (TRESA).
Key facts of the case
- Two agents from the same brokerage represented the seller in the sale of their property.
- The listing for the property indicated that the seller would review all offers on a specific date. The instructions also indicated the seller requested that offers be made irrevocable for 24-48 hours.
- The seller’s agents received offers from six different buyers. One of the offers was from a buyer represented by the seller’s brokerage, and this was disclosed to all buyers via email.
- All offers were conveyed to the seller, and while negotiations were underway, a seventh buyer contacted the seller’s agent to express interest in submitting an offer.
- The seventh buyer, now represented by one of the seller’s agents, submitted an offer on the property. The seller’s agents did not notify the other buyers or their agents that the seller’s agents was representing both the seller and the seventh buyer.
- The seventh buyer was successful in purchasing the property.
Decision
The discipline panel found that the seller’s agents failed to notify all buyers involved in the trade that their brokerage was in multiple representation and that they were representing a competing buyer client’s offer. The panel found a breach of s. 17 of the REBBA Code of Ethics and ordered a fine of $10,000 for each of the seller’s agents, along with a requirement to complete an educational course.
It is important to note that designated representation was not in effect when this case occurred, as it pre-dated the introduction of TRESA.
What agents need to know
Though the above case occurred while REBBA was in force, it’s important to understand how the scenario is handled under TRESA. First and foremost, a brokerage or designated representative is prohibited from representing more than one client in a trade unless:
- the brokerage makes the mandatory written disclosure,
- the brokerage makes best efforts to obtain an acknowledgement that the required disclosure was received, and
- after receiving the disclosure, if each of the existing or prospective clients agree, the clients provide written consent to the brokerage or designated representative continuing to represent them in respect of the trade.
When these criteria have been met, multiple representation under TRESA can arise in two situations:
- Under brokerage representation, multiple representation arises when the brokerage has a seller client and one or more buyer clients in the same trade, or the brokerage has one or more competing buyers in the same trade.
- Under designated representation, multiple representation can occur when the same agent is the designated representative for a seller client and one or more buyer clients in the same trade or the same agent is the designated representative for more than one competing buyer in the same trade.
In this case, one of the seller’s agents was engaging in multiple representation. However, it is not just multiple representation by an agent that requires disclosure to other parties, a brokerage has important disclosure obligations:
- If a brokerage has a seller client and a buyer client in the same trade, the brokerage must disclose this fact to every other buyer who makes a written offer.
- The disclosure must be made as soon as possible after an offer is received, and before any offer is accepted by the seller.
- The disclosure must be clear that the brokerage has a seller client and buyer client in the same trade – but distinctly different from the multiple representation disclosure and consent obtained by both clients prior to proceeding.
- The disclosure requirement applies even when the seller and buyer are represented by different designated representatives, but would not apply if a brokerage has multiple buyer clients in a trade.
- The disclosure should be provided in writing to all prospective buyers’ agents, or to a self-represented party buyer directly. Best efforts must be made to obtain acknowledgement from all prospective buyers that the required disclosure has been made.
Additional information
The TRESA obligations arise from the General Regulation O. Reg. 567/05
Disclosure of multiple clients to buyers
22.0.3
- If a brokerage provides services to a seller and a buyer in respect of the same trade in real estate, the brokerage shall, as soon as possible after receiving a written offer from the buyer and before an offer is accepted, disclose this fact to every other buyer who makes a written offer. O. Reg. 235/23, s. 9.
- A brokerage shall make best efforts to obtain a written acknowledgement from each person receiving a disclosure under subsection (1) indicating that the disclosure has been received and, if a person makes the acknowledgment, provide them with a copy of it. O. Reg. 235/23, s. 9.
More information can be found in RECO’s bulletins on Multiple representation and Disclosures, consents, and acknowledgements.”
COMMENT
That was the update. It may not come as frequently as it did, but it’s still extremely important. In this case, the next day, the information is published on the Listing. The fact that the Listing Brokerage double-ended the deal is clear to all.
Brian Madigan LL.B., Broker