Raj, a salesperson at Prime Realty Inc., has a designated representation agreement with Mr. Sharma to sell his cottage in Muskoka. Another salesperson, Susan, also from Prime Realty Inc., enters into a designated representation agreement with Ms. Taylor to purchase the same cottage. What does TRESA require in this scenario?

Question: Raj, a salesperson at Prime Realty Inc., has a designated representation agreement with Mr. Sharma to sell his cottage in Muskoka. Another salesperson, Susan, also from Prime Realty Inc., enters into a designated representation agreement with Ms. Taylor to purchase the same cottage. What does TRESA require in this scenario?

Answer options: ✅ Both Mr. Sharma and Ms. Taylor must provide written consent to designated representation.

• Raj and Susan must immediately terminate their respective agreements.
• One of the clients must be referred to an external brokerage.
• The brokerage must obtain consent for multiple representation from both clients.

Correct answer: Both Mr. Sharma and Ms. Taylor must provide written consent to designated representation.

Explanation: Under TRESA, for designated representation to occur, both the seller and buyer clients must consent in writing to their respective salespersons acting as designated representatives within the same brokerage.