Is it risky if a broker represents both me and the buyer?

One broker acting for both you and the buyer on the same sale puts two clients with opposite interests in front of one person. In Ontario, if the broker’s own interests conflict or may conflict with yours, the Code of Ethics requires disclosure and your written consent before it acts for you. Our page on who a broker represents gives the general picture; this one looks at what you give up.

Where the two clients part ways

Ontario’s Code of Ethics says a registrant that represents a client must promote and protect the best interests of its clients. On price, payment terms and what you are prepared to accept, what is best for you is not best for the buyer. If you are the seller and the broker represents the buyer too, ask who advises on the price and how the broker avoids favouring one side.

What must happen before a broker can proceed

Under the Code, a registrant must not provide, or continue to provide, services to a client where its interests conflict or may conflict with the client’s unless it has disclosed the relationship, advised the client to seek independent professional advice, taken all reasonable steps to ensure the client has demonstrated a reasonable understanding of the conflict, and obtained written consent. The Trust in Real Estate Services Act, 2002 also lets the government make regulations governing how registrants act when they represent more than one party in a trade, and specifying when they are prohibited from doing so. Ask the broker which rules on acting for both sides it is relying on, and read them.

What stays between you and the broker

The Code says a registrant must not disclose a client’s confidential information to a third party without the client’s written consent. Before you consent, ask exactly what the broker may share with the buyer, such as your lowest acceptable price or your reason for selling, and put limits in writing. Other provinces run their own regimes. BDC describes brokers as intermediaries who can discreetly approach buyers on your behalf, which you can compare with what you are being asked to accept.