When a buyer from the same brokerage shows interest in a seller’s listing, written consent from both parties matters under REBBA.

When two clients end up in the same brokerage (one buyer, one seller), things can get a little tangled. You want a clean, fair process that protects everyone’s interests and keeps the deal moving smoothly. In Ontario, the Real Estate and Business Brokers Act (REBBA) lays out clear expectations for situations like this. The key takeaway: before any offer is made, obtain written consent from both parties about the possibility of multiple representation. Let me walk you through what that means in real terms.

What exactly is “multiple representation,” and why does it matter?

• Picture this: a buyer client, represented by one salesperson within your brokerage, looks at a seller’s property listed by another salesperson at the same brokerage. Even though everyone works for the same brokerage, the buyers and sellers have their own interests, needs, and confidences. That’s the essence of multiple representation (often called dual representation in simpler terms).

• The big risk isn’t that someone is trying to do something shady. It’s the potential for conflicts of interest and the risk that confidential information isn’t handled properly. If the buyer’s motivation or financing flexibility becomes known to the seller, or vice versa, the dynamics of the negotiation can shift in ways that aren’t fair to one side.

The rule under REBBA: written consent before any offer

• The correct approach is precise and important: obtain written consent from both parties as soon as possible before any offer is presented. This isn’t a vague guideline you can skip or delay. It’s a formal step designed to ensure everyone understands what representation means in this specific arrangement.

• Why “written” consent? A signature provides a clear, binding record of what each client has agreed to. It protects the client’s rights, helps prevent misunderstandings, and gives the brokerage a documented framework to follow if questions or disputes arise later.

• Why “as soon as possible before any offer”? Because once an offer is on the table, the leverage, information flow, and negotiation dynamics change. Having written consent in place before that critical moment helps keep everything above board and transparent.

What should the written consent cover?

• The nature of representation: it should spell out that multiple representation is in play, with a clear description of who is represented on which side.

• Confidentiality and disclosure: it should outline how confidential information will be handled. For example, information that could affect a party’s negotiating position should stay with that party, unless disclosure is required or consented to explicitly.

• Responsibilities and duties: even in multiple representation, the brokerage owes fiduciary duties (to the designated client(s) on each side). The consent form should reinforce that duty and explain how it will be upheld.

• Any limitations or disclosures: if there are any constraints on what the agent can share or how they can negotiate on behalf of each client, those should be stated.

• Signatures and dates: the document should be signed by both clients or their authorized representatives, with the date clearly recorded.

How a brokerage typically handles this in practice

• Early identification: as soon as it’s evident that a buyer from one salesperson is interested in a property listed by another salesperson in the same brokerage, the brokerage should flag the potential for multiple representation.

• Clear disclosure: both sides should be informed about the possibility and the implications of multiple representation. The goal is transparent awareness, not surprise later on.

• The consent process: provide a straightforward written consent form. Review it with each client, answer questions, and ensure they understand what they’re agreeing to before any offer is made.

• File organization: keep separate client files for each party, with the consent documentation clearly attached. This helps avoid cross-contamination of confidential information and keeps the audit trail clean.

• Ongoing communication: even after consent, keep communications clear and neutral. Avoid sharing sensitive details about one client’s position with the other, unless there is explicit, documented consent to do so.

What happens if consent isn’t obtained, or isn’t in writing?

• Non-compliance carries real risk. A failure to secure proper written consent can expose the brokerage and the agents to regulatory scrutiny by RECO (the Real Estate Council of Ontario) and possible penalties.

• For clients, unclear or absent consent can erode trust and lead to disputes that derail a deal or require costly corrections later on.

• The ethical takeaway: even if it seems like a minor step, written consent is a cornerstone of fair dealing. It signals to clients that their interests aren’t being swept under a rug and that the brokerage takes transparency seriously.

Tips to keep this from becoming a headache (for both students and practitioners)

• Use a standard written consent form: have a clear, plain-language document that covers representation, confidentiality, and the precise roles of each party. A ready-made form speeds things up and reduces confusion.

• Explain, don’t rush: take the time to discuss what multiple representation means with both clients. Make sure they understand the potential pros and cons before signing.

• Document everything: save copies of the consent in each client’s file, and provide a copy to both clients. Documentation is your friend when questions arise later.

• Protect confidential information: establish rules about what information can be shared and what must stay private. If in doubt, hold the information and consult with a supervisor or compliance officer.

• Prepare for exceptions: sometimes a client may withdraw consent or request a change in representation. Have a plan for how to handle that cleanly and legally without disrupting the deal.

• Leverage regulator resources: RECO and Ontario real estate associations offer guidance on best practices. Use those resources to stay aligned with current standards and avoid missteps.

A couple of practical analogies to help the idea stick

• Think of it like two tenants in the same apartment building who share a manager. Even though they’re under the same roof, each tenant has their own lease, rights, and negotiating space. The manager must document the arrangement so both tenants know who’s representing whom, what information can be shared, and how conflicts will be handled.

• Or picture a sports team with two players on the same roster eyeing the same target. They still need clear roles, boundaries, and a transparent plan for how decisions are made to prevent messy overlaps.

Why this matters beyond the letter of the rules

• Trust is the currency of real estate. When clients know their interests are being protected by written consent and clear disclosures, they feel more secure. That security translates into smoother negotiations, fewer misunderstandings, and a greater likelihood of a successful close.

• The business case is simple: fewer complaints, fewer disputes, and a stronger reputation for fairness. This is how brokerages build long-term relationships with clients who will return for future moves and refer friends and family.

Putting it all together

• When a buyer client (represented by one salesperson) shows interest in a seller’s property (listed by another salesperson in the same brokerage), the brokerage faces a genuine multiple representation scenario.

• The correct course of action is to obtain written consent from both parties as soon as possible before any offer is presented. This step anchors transparency, protects rights, and aligns with REBBA’s ethical framework.

• Beyond the rule, the practical impact is meaningful: clearer expectations, better information handling, and a foundation for trust between clients and the brokerage.

• If you’re mapping this in your notes or discussing it with colleagues, frame it as a straightforward safeguard rather than a bureaucratic hurdle. It’s about making the transaction more sane, predictable, and fair for everyone involved.

Final takeaway: a simple form, signed early, saves a lot of potential headaches

In the heat of a real estate moment, it’s easy to push ahead on momentum. But with multiple representation, the safeguard is a simple one: written consent from both parties, obtained before any offer is made. Keep it standard, keep it clear, and keep the focus on fair play. That’s how brokerages honor the trust clients place in them—and how smooth, ethical transactions become the norm rather than the exception.

If you’re navigating Ontario’s real estate landscape, remember: transparency isn’t optional. It’s the backbone of professional practice, the kind of principle that helps buyers and sellers feel confident at every step. And when the paperwork is tidy and the consent is explicit, you’ve laid the groundwork for a successful, respectful deal—and that’s a win for everyone involved.