What follows below is the First Scenario in RECO’s most recent newsletter
Is it correct?
Did RECO forget to say something important?
Would you give RECO full marks on this?
And, please just overlook the Grade 8 grammar mistake!
Complaint example: Janet Crescent of ABC123 Realty is the listing salesperson on a property that has received three offers. One of the offers is from a buyer who is represented by another salesperson at ABC123 Realty. Ms. Crescent fails to inform the other two prospective buyers that there is an offer from her brokerage. A complaint is filed against Ms. Crescent for failing to disclose the multiple representation situation.
Another common variation of this scenario is when the listing salesperson him or herself is also representing a buyer and fails to disclose that information to other prospective buyers.
Solution: Upon knowing that there was a multiple representation scenario, Ms. Crescent should have been in touch with the other two buyers’ representatives (or the buyers directly if they are not represented) to let them know of the situation. Documenting the disclosure (e.g., through email or text) is a good way to keep a record that disclosure has been made.
BRIAN MADIGAN"S ANSWER
The disclosure is necessary as RECO says, but it MUST be in WRITING. The references to "should have been in touch", and a "good way to keep a record..". don’t come close to full marks in my opinion. Something like this from RECO makes the whole process seem voluntary rather than mandatory.
Here’s what the Code says:
Nature of relationship
17. If a registrant represents or provides services to more than one buyer or seller in respect of the same trade in real estate, the registrant shall, in writing, at the earliest practicable opportunity and before any offer is made, inform all buyers and sellers involved in that trade of the nature of the registrant’s relationship to each buyer and seller. O. Reg. 580/05, s. 17.
So, as you can easily see the "IN WRITING" provision is a requirement.
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