In Ontario real estate, Multiple Representation and Designated Representation are two legal frameworks that describe how a real estate brokerage represents clients when a conflict of interest arises — especially when the same brokerage is involved on both sides of a transaction. These concepts are regulated under the Trust in Real Estate Services Act (TRESA), which replaced the Real Estate and Business Brokers Act (REBBA) in 2023.

🔁 Multiple Representation

Definition:
Multiple Representation occurs when a single real estate brokerage represents both the buyer and the seller (or multiple buyers) in the same transaction.

Key Points:

• Same brokerage and same agent: One agent may be working for both parties.

• This creates a conflict of interest, since both parties have opposing goals.

• The brokerage owes limited fiduciary duties to both clients to avoid favoring one over the other.

Limitations:

• The brokerage cannot disclose:

  • The price the buyer is willing to pay.

  • The price the seller is willing to accept.

  • Any confidential motivation or strategy without consent.

Client Consent Required:

• Written informed consent from all clients is mandatory before proceeding.

Example:

• A buyer is interested in purchasing a home listed by their own agent’s brokerage. The same agent represents both the buyer and the seller.

👤 Designated Representation

Definition:
Designated Representation is a more recent model (allowed under TRESA) where the brokerage designates specific agents (salespersons or brokers) to represent individual clients within the same transaction.

Key Points:

• Each client gets exclusive representation from a different agent in the same brokerage.

• The brokerage itself is still technically in multiple representation but takes a neutral supervisory role.

• Each designated representative owes full fiduciary duties (loyalty, confidentiality, etc.) to their client.

Advantages:

• Reduces the conflict of interest inherent in traditional multiple representation.

• Allows agents to fully advocate for their client.

Consent Still Required:

• Clients must be notified and agree to this form of representation in writing.

Example:

• A buyer is represented by Agent A and the seller by Agent B. Both agents work for the same brokerage but act independently in their clients’ best interests.

Summary Table

Here's a visual chart that compares Multiple Representation and Designated Representation in Ontario real estate. I'll also include a simplified version of what a disclosure/consent form might summarize.

📊 Comparison Chart: Multiple vs. Designated Representation

📄 Sample Summary: Consent Disclosure Text

Here’s a simplified example of language that might appear in a real estate consent form (for educational purposes):

MULTIPLE REPRESENTATION CONSENT (Simplified Sample):

We hereby consent to [Brokerage Name] acting as a multiple representative in a transaction involving both buyer and seller. We understand:

• The brokerage cannot disclose confidential information (e.g., motivation, bottom line).

• The brokerage will not act solely in our best interests.

• Our informed consent is required, and we may seek independent advice.

DESIGNATED REPRESENTATION CONSENT (Simplified Sample):

We hereby consent to [Brokerage Name] designating:

• [Agent A] to represent the Buyer

• [Agent B] to represent the Seller

Each designated representative owes us full fiduciary duties. The brokerage will oversee the transaction neutrally. Confidential information will not be shared between the representatives.

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