Under what circumstances is designated representation NOT permitted by an Ontario brokerage?

Question: Under what circumstances is designated representation NOT permitted by an Ontario brokerage?

Answer options:

• When the designated representatives are from different branch offices of the same brokerage. ✅ When the brokerage does not have policies and procedures in place to protect the confidential information of its clients.
• When both clients are sophisticated investors with extensive real estate experience.
• When the property involved is a residential condominium unit.

Correct answer: When the brokerage does not have policies and procedures in place to protect the confidential information of its clients.

Explanation: Designated representation is permissible only if the brokerage has established and implemented robust policies and procedures to ensure the protection of each client's confidential information and to ensure that each designated representative acts in the best interests of their respective client. This is a critical requirement under REBBA 2002.