A brokerage, 'Prime Properties Inc.', has two salespersons, Emily and David. Emily represents the seller of a property, and David represents a buyer who is interested in that same property. Both Emily and David are designated representatives for their respective clients. Under the Trust in Real Estate Services Act (TRESA), 2002, and its regulations, what is the most accurate description of the agency relationship in this scenario?

Question: A brokerage, 'Prime Properties Inc.', has two salespersons, Emily and David. Emily represents the seller of a property, and David represents a buyer who is interested in that same property. Both Emily and David are designated representatives for their respective clients. Under the Trust in Real Estate Services Act (TRESA), 2002, and its regulations, what is the most accurate description of the agency relationship in this scenario?

Answer options: ✅ This is an instance of designated representation, and it is permitted as long as the brokerage has explained the implications and obtained informed written consent from both the seller and the buyer.

• This is a multiple representation, and it is strictly prohibited in Ontario under all circumstances.
• This is not considered multiple representation because Emily and David are distinct individuals, even though they work for the same brokerage.
• This is a form of co-operating agency, where each salesperson represents a different principal, thus avoiding any conflict of interest for the brokerage.

Correct answer: This is an instance of designated representation, and it is permitted as long as the brokerage has explained the implications and obtained informed written consent from both the seller and the buyer.

Explanation: Under TRESA, 2002, and its regulations, when different designated representatives from the same brokerage represent different parties in the same transaction, it is considered designated representation. This is permitted provided the brokerage gives a written explanation of the implications and obtains written consent for designated representation from all represented parties, as outlined in O. Reg. 406/23, Section 11.