Multiple representation in Ontario real estate occurs when a single brokerage represents more than one client with competing interests in the same transaction. It is legal in Ontario, but it requires written consent from all clients involved and significantly limits the services the brokerage can provide to each party.
Multiple representation means a designated representative or brokerage represents more than one client, with competing interests, in the same transaction. The most common scenario arises when the same brokerage has a listing agreement with a seller and also represents a buyer who wants to make an offer on that property. It also applies when the brokerage represents two or more competing buyers interested in the same property, even when the clients are working with different real estate agents within that brokerage.
The brokerage is required to provide you with a written disclosure that explains how its duties to you will change. Until all clients receive and agree to this disclosure in writing, the brokerage cannot take any further steps on behalf of any of them. Confidential information you provided to the brokerage when you were represented cannot be shared without your written consent.
The practical effect is significant. In a multiple representation situation, none of the clients are fully represented. The clients no longer receive the full benefit of the client relationship because of restrictions on the services that can be provided, the information that can be shared, and the advice that can be given. The brokerage cannot advocate for one client's negotiating position over another's. It must treat all parties fairly and impartially.
If you do not agree to multiple representation, the brokerage is not allowed to proceed. You can ask the brokerage about alternatives, such as a referral to another brokerage or another designated representative to help you make an offer on the property.
Under the Trust in Real Estate Services Act (TRESA), which replaced the former REBBA legislation on December 1, 2023, Ontario also introduced designated representation as an alternative model. Under designated representation, one or more of the brokerage's agents is your designated representative who must promote and protect your best interests, while the brokerage and its other agents are required to treat you impartially and objectively. An important aspect of designated representation is that it reduces the likelihood of multiple representation. A brokerage can choose between the two models on a transaction-by-transaction basis.
If you are buying or selling a property in Toronto and your agent's brokerage also represents the other side, you have every right to decline multiple representation and seek independent representation elsewhere. Understanding this distinction can protect your interests during one of the largest financial decisions you will make. To learn more about how representation agreements work, read What Is a Buyer Representation Agreement in Ontario?
