A brokerage represents both the buyer and the seller in a single transaction, with different salespersons from the same brokerage designated to represent each client. Which of the following statements regarding this scenario is most accurate under REBBA 2002 regulations?

Question: A brokerage represents both the buyer and the seller in a single transaction, with different salespersons from the same brokerage designated to represent each client. Which of the following statements regarding this scenario is most accurate under REBBA 2002 regulations?

Answer options: ✅ This arrangement constitutes multiple representation and requires specific client consent.

• This is permissible under designated representation and effectively avoids multiple representation.
• The brokerage must decline to represent one of the parties to avoid a conflict of interest.
• Such a scenario is only allowed if the property is commercial, not residential.

Correct answer: This arrangement constitutes multiple representation and requires specific client consent.

Explanation: Even with designated representation where different individuals represent buyer and seller, the brokerage itself is still in a multiple representation situation, as it owes fiduciary duties to both parties. Therefore, specific written consent from both clients is required under REBBA 2002 (O. Reg. 580/05, s. 16(1)).