Disclosure of Close Relationship in Ontario
Question:
If the agent represents cousin's wife - is this consider to be a relative? Same last name
Answer:
In this situation, disclosure is only required with respect to ascendants, descendants and collaterals to the first degree, which means brothers and sisters. There is a slightly extended definition which includes marriage, adoption, conjugal relationships and controlled corporations. So, here, cousins don’t count!
In Ontario, there is a good deal of confusion about this disclosure issue.
There are two separate and distinct disclosure requirements, one under the Act and the other, under the Code. Section 32 of the Act requires disclosure of a direct or indirect interest. This notice goes to the OTHER side in a deal.
Section 18 of the Code requires disclosure of a relationship. That notice goes to your own CLIENTS and CUSTOMERS, no one else, nobody else could care less.
The problem arises due to the fact that OREA has one single Form rather than two. It becomes confusing and for those who don’t want to look up the two sections in the Act and the Code, it’s often easier to simply say : “who cares, tell everybody, everything… I have nothing to hide…”.
So, we have all kinds of disclosures to independent Sellers by Buyer Agents indicating a relationship to their son, or daughter etc. This is not required. This agent needs to tell their own competitive buyers who may feel that there would be a preference given to the relative. The Seller couldn’t care less!
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