A buyer client, fully aware of their salesperson's designated representation, decides to make an offer on a property listed by a second salesperson, also designated, within the same brokerage. If the buyer decides against providing consent for multiple representation, what is the most appropriate action for the brokerage?

Question: A buyer client, fully aware of their salesperson's designated representation, decides to make an offer on a property listed by a second salesperson, also designated, within the same brokerage. If the buyer decides against providing consent for multiple representation, what is the most appropriate action for the brokerage?

Answer options: ✅ The brokerage must decline to represent either the buyer or the seller in this particular transaction.

• The brokerage can proceed with the sale, but both salespersons must refrain from giving advice.
• The buyer's designated representative can advise the buyer to seek another property outside the brokerage's listings.
• The seller's designated representative must find an external buyer for the property.

Correct answer: The brokerage must decline to represent either the buyer or the seller in this particular transaction.

Explanation: If a client does not consent to multiple representation after full disclosure, the brokerage cannot continue to represent both parties in the same transaction. According to REBBA 2002 (O. Reg. 580/05, s. 16(2)), the brokerage must refuse to act for one or both of the clients.