Can Realtor Represent Two Buyers On Same Property in Toronto?
Navigating Multiple Representations in Toronto Real Estate
Navigating the maze of Toronto neighbourhood real estate can be daunting, and often, the guidance of a seasoned Toronto realtor can make all the difference. However, a question often arises from first-time homebuyers and investors alike: can a realtor represent two buyers interested in the same property in Toronto?
It’s important to understand the impact of this type of representation so let’s delve a little deeper into the complexities of multiple representations in Ontario’s busy real estate market.
Can Realtor Represent Two Buyers: Understanding Multiple Representations
In Toronto real estate, multiple representation situations can sometimes occur. These situations involve a single brokerage or realtor representing both the buyer and seller. Or, it involves representing multiple prospective buyers in the same transaction. This might sound confusing, so let’s break it down further so you have a clear understanding of how things work in this scenario.
Before a Toronto realtor enters into a multiple representation agreement, they are required to:
- Outline the services generally available to buyers and sellers.
- Describe the specific services they’ll provide and any alternatives available to the potential client.
- Inform prospective Toronto home buyers and sellers about the possibility of multiple representation, including the services the brokerage would provide in such a situation.
- Make it clear that they cannot represent multiple clients in a transaction unless all potential clients consent in writing.
The Importance of Written Consent in Multiple Representations
When a multiple representation situation arises, the Toronto realtor must explain how their services will differ from a single representation situation. They must also clarify any differences in the sharing of information between the parties involved. This disclosure should be made as early as possible. And it definitely needs to take place before an offer to purchase is made.
Furthermore, the realtor needs to obtain the written consent of all parties they represent in the transaction. This applies even if different salespersons or brokers from the same brokerage are involved. This written consent ensures all parties understand how the information related to the transaction will be exchanged. It also helps to explain how services will be provided and work to answer the question can realtor represent two buyers.
What Happens When Consent is Refused?
In cases where a Toronto home buyer or seller refuses to consent to multiple representation, the realtor must release one or more clients to seek alternative representation with another brokerage. A brokerage cannot represent more than one party in a trade without the written consent of all the parties it is representing.
Multiple Customers Vs Multiple Clients
In the Toronto real estate sector, a customer is a person who has entered into a service agreement with a brokerage related to a real estate transaction but is not being represented as a client. Essentially, a customer is receiving assistance from the brokerage in the transaction but is not provided with any fiduciary advice or services.
Realtors must treat customers with fairness, honesty, and integrity. But they are not obligated to protect the customer’s best interest as they would with a client. When providing services to customers, realtors must disclose that they may represent more than one customer in a transaction. However, they do not require written consent to provide services to an additional customer in a transaction.
Can realtor represent two buyers on the same property? Yes, but with strict regulations to ensure transparency and consent from all parties involved. As a Toronto home buyer, it’s essential to understand these regulations and your rights within multiple representation situations, to navigate the Toronto real estate landscape effectively and successfully. Consult with an expert Toronto realtor to know your rights.