#GoodReads – Multiple Representation
“Understanding multiple representation”
Via RECO.
“Multiple representation means a designated representative or brokerage represents more than one client, with competing interests, in the same transaction. This can happen in different ways, depending on the type of representation agreement you and the other clients have with the brokerage.
Under brokerage representation, multiple representation happens when:
- the brokerage represents both the buyer and seller in the same transaction, or
- the brokerage represents two or more competing buyers interested in the same property.
This is true even when the clients are working with different real estate agents.
Under designated representation, multiple representation happens when:
- the same real estate agent is the designated representative for both the buyer and the seller in the same transaction, or
- the same real estate agent is the designated representative for two or more competing buyers interested in the same property.
Multiple representation is not permitted unless each of the clients involved agrees. You should seek independent professional advice (for example, from your real estate lawyer) before proceeding.
The brokerage or your designated representative has a duty to promote and protect your best interests and avoid conflicts of interest. If your brokerage or designated representative enters into an agreement with another client who has an interest in the same property as you, this places both clients in multiple representation. Multiple representation introduces risks you and the other client should consider.
It’s important to understand the risks. If you agree to multiple representation, the brokerage or designated representative:
- Must treat each of the clients involved in an objective and impartial manner;
- Cannot maintain undivided loyalty to you or promote and protect your interests over the interests of the other client; and,
- Cannot offer advice to you about such things as the price you should offer or accept or terms that should be included in an agreement of purchase and sale…
You can refuse multiple representation…”
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