AZ REAL ESTATE
Multiple Representation Under TRESA: What It Means When One Agent Sits on Both Sides
Arthur Zhao · AZ Real Estate Partners
KEY TAKEAWAY
What is multiple representation, and what changed under TRESA?
Multiple representation is when one brokerage, or one designated representative, represents more than one client with competing interests in the same trade — most commonly a single agent acting for both the seller and the buyer. According to RECO, multiple representation is not illegal, but it is tightly restricted: it requires written disclosure, written consent from each client, and that the agent treat both parties objectively and impartially. When Phase 2 of the Trust in Real Estate Services Act (TRESA) took effect on December 1, 2023, the rules tightened further and introduced two new concepts: designated representation and the self-represented party (SRP). This article is general information, not legal advice.
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Step 1: Understand What Multiple Representation Actually Is
After years of practice, I find that many buyers and sellers misread multiple representation as simply “one agent running between both sides.” It has a precise legal meaning that matters.
According to RECO (2023), multiple representation is when a designated representative or a brokerage represents more than one client with competing interests in the same transaction. Two situations are most common: one agent acting for both seller and buyer; or, within one brokerage, the seller and buyer each have a different agent but both are clients of that same firm — under a brokerage-representation model, that still creates multiple representation.
- Key point 1: Whether you are in multiple representation depends on the representation model, not just whether it is literally the same person.
- Key point 2: Multiple representation is not prohibited outright, but it triggers a mandatory set of disclosure and consent steps.
Why does this distinction matter so much in the Greater Toronto Area? In a hot, low-inventory market, it is common for a busy listing agent to also attract the buyer — through an open house, a sign call, or a referral. That convenience is exactly where multiple representation quietly begins, and where consumers most often misunderstand the loss of advocacy they are agreeing to.
In short: the moment one agent or one firm represents two parties with opposing interests in the same deal, the rules of the game change.
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Step 2: What TRESA Phase 2 (December 1, 2023) Changed
According to the Government of Ontario and RECO (2023), TRESA Phase 2 took effect on December 1, 2023, replacing the former REBBA framework. For everyday buyers and sellers, three changes matter most.
- Designated representation was introduced. According to OREA (2023), a brokerage can now assign the buyer and the seller to two different agents — the listing agent represents the seller while another agent at the same firm represents the buyer. The duty of loyalty then sits with those two designated agents, not with the entire brokerage and all of its REALTORS.
- The self-represented party (SRP) was introduced. Replacing the older, fuzzier “client vs. customer” language, a person in a transaction is now either a client of a brokerage or a self-represented party.
- Enforcement got stronger. According to RECO (2023), under TRESA, RECO can not only discipline Code of Ethics breaches but may also suspend, revoke, or apply conditions to a registrant’s registration.
The point of all this is to make one question — whose side is my agent actually on — clear from the very start.
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Step 3: What an Agent Absolutely Cannot Do in Multiple Representation
This is the most practical part. Once a deal enters multiple representation, your agent’s duty to you fundamentally changes — from “fighting for you” down to “treating both sides equally.”
According to RECO (2023), in multiple representation, the brokerage or designated representative:
- Must treat each client in an objective and impartial manner. They can no longer maintain undivided loyalty to you, nor promote your interests over the other client’s.
- Cannot advise you on the key negotiating questions — such as the price you should offer or accept, or the terms to include. In RECO’s words, the representative “cannot offer advice to you about such things as the price you should offer or accept or terms that should be included in an agreement of purchase and sale.”
- Cannot disclose the other party’s confidential information. Confidential information you gave the brokerage while represented — your walk-away price, your motivation, your urgency — cannot be shared without your written consent. The reverse is also true: do not expect to pry the other side’s bottom line out of this agent.
It helps to see the contrast. When you are a normally represented client, your agent owes you undivided loyalty: they analyze comparable sales for you, recommend an offer strategy, and coach you through counters. The instant the same agent or firm also represents the other side under multiple representation, all of that strategic advice has to stop for both clients at once — because helping one inevitably disadvantages the other. That is not a small administrative change; it removes the single most valuable thing most people think they are paying an agent for.
Put plainly: in multiple representation, no one is there to negotiate the price down for you or hold the line for you. You get a neutral facilitator, not an advocate.
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Step 4: Mandatory Written Disclosure and Consent — Timing Is Everything
Multiple representation is not something an agent can simply mention after the fact. It follows a strict procedure, and timing is critical.
According to RECO (2023), multiple representation is prohibited unless all three of the following are met:
- Mandatory written disclosure, in plain, clear and concise language, explaining the difference in duties and services between representing one client and representing more than one.
- Best efforts to obtain a written acknowledgement that you received the disclosure, with a copy provided to you.
- Written consent from each client after disclosure, before the trade proceeds further.
RECO also stresses the timing: “As soon as a brokerage or agent is aware that it has more than one client in the same trade, it must make full disclosure,” and consent must be obtained as soon as the brokerage knows it is in multiple representation. The forms are maintained by RECO and available on its website.
My practical reminder: this consent is typically signed before or at the time of the offer. Do not let the first you hear of “multiple representation” be at the moment of signing. If you are not comfortable with the arrangement, you can decline and ask for a different representation structure.
Step 5: How Buyers and Sellers Protect Themselves — Three Practical Moves
Rules aside, what should you actually do? Here are my three most practical suggestions for both buyers and sellers.
- Ask about the representation model at the very start. According to OREA (2023), the type of agreement is to be determined at the beginning of the transaction. When you sign a representation agreement, ask directly: is this brokerage representation or designated representation? Under designated representation, even when another agent at the same firm represents the other side, your agent still owes you full loyalty — usually better protection than falling into multiple representation.
- Treat your confidential information as confidential. Before a representation relationship is confirmed, do not volunteer your top price, how urgent your timeline is, or your motivation to any agent. Once you are in multiple representation, these are exactly the things the agent can neither protect for you nor leverage on your behalf.
- Understand the self-represented party position. If you choose not to be represented by any brokerage (becoming an SRP), then according to RECO (2023), the other party’s agent must first give you the RECO Information Guide and the self-represented party disclosure before providing any assistance — and that agent cannot give you any opinion or advice on price, terms, or clauses. That means doing your own homework, or considering an independent lawyer or agent.
My position is simple: multiple representation can get a deal done in some situations, but you should consent to it knowingly, voluntarily, and with a clear understanding of what you are giving up — not because the paperwork carried you along.
Disclaimer
This article is general educational information compiled from materials published by RECO, the Government of Ontario, and OREA as of 2023. It is not legal advice and is not a substitute for professional legal or compliance guidance. TRESA, its regulations, and the relevant forms may be updated; for any specific transaction, rely on RECO’s most current official documents and consult a licensed professional or lawyer.
BY THE NUMBERS
- TRESA Phase 2 took effect on December 1, 2023, replacing the former REBBA framework.
According to Government of Ontario / RECO (2023) - Multiple representation is prohibited unless there is written disclosure, best efforts to obtain a written acknowledgement, and written consent from each client.
According to RECO (2023) - In multiple representation, an agent cannot advise you on the price you should offer or accept, or the terms to include in an agreement of purchase and sale.
According to RECO (2023) - Before assisting a self-represented party, the agent must first provide the RECO Information Guide and the self-represented party disclosure.
According to RECO (2023)
Frequently Asked Questions
Is multiple representation legal in Ontario?
Yes, but it is tightly restricted. According to RECO (2023), multiple representation is only permitted after mandatory written disclosure, best efforts to obtain a written acknowledgement, and written consent from each client — otherwise it is a breach.
What is the difference between designated and multiple representation?
According to OREA (2023), designated representation assigns the buyer and seller to two different agents within the same firm, with loyalty sitting only with those designated agents. Multiple representation is when one designated representative or the whole firm represents both competing sides, requiring strict impartiality.
In multiple representation, can my walk-away price be leaked?
No. According to RECO (2023), confidential information you provided while represented cannot be shared with the other party without your written consent. Equally, you cannot obtain the other side's confidential information through that agent.
What is a self-represented party (SRP)?
According to RECO (2023), an SRP is a person who is not a client of any brokerage and acts on their own behalf. Before assisting an SRP, the other agent must provide the RECO Information Guide and disclosure, and cannot offer opinions or advice on price or terms.
Should I agree to multiple representation?
It depends on the situation. Multiple representation means no agent is negotiating the price for you or holding the line for you. Understand what you are giving up before signing; if you are not comfortable, you can request designated representation or an independent agent. This is general information — consult a licensed professional.
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