Multiple Representation: Protection for Consumers

Friday Oct 06th, 2017


What is Multiple Representation?
When your brokerage represents both buyer and seller (or more than one competing buyer) in the same transaction, this is known as multiple representation.  This scenario can tricky for consumers because a brokerage’s loyalty is divided between buyer and seller, who undoubtedly have opposing interests within a single deal.


New Legislation
The Ontario government announced new legislation that, if passed, will increase consumer protection in the real estate marketplace. This would strengthen protection for consumers making significant purchases like buying event tickets, and purchasing or selling real estate, including newly built homes.


The Strengthening Protection for Ontario Consumers Act would:


  • Strengthen confidence in Ontario's new home warranties and protections by introducing significant changes, including the creation of two administrative authorities -- one to administer the new home warranty program and one to regulate new home builders and vendors.


  • Introduce stronger rules and professional standards in the real estate sector, including new measures to address conflict of interest issues that arise in multiple representation situations and heavier fines for Code of Ethics violations by real estate professionals.


  • Help prevent ticket fraud and excessive markups in the resale ticket market, including banning ticket bots and the sale of tickets that were purchased using bots, capping the resale price of tickets at 50 per cent above face value, requiring businesses selling or reselling tickets to disclose key information to consumers and establishing new enforcement measures.


Highlights: RECO’s Public Statement
The bill that was introduced into the Legislature today commits to implementing "new measures to address conflict of interest issues that arise in multiple representation situations and heavier fines for the Code of Ethics violations by real estate professionals." 


The introduction of the bill is one step toward changes taking effect. RECO looks forward to working with government and all other stakeholders on the next steps of drafting and implementing these new rules to ensure they meet our shared priority of enhancing consumer protection.


The announcement is part of Phase One of the government's 2-part review of the Real Estate and Business Brokers Act, 2002 (REBBA), the legislation administered by RECO. Phase Two will be a full review of all aspects of REBBA, scheduled to take place in 2018.

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