My Realtor Is Also the Listing Agent — Should I Be Concerned?

You've found a house you love.

You're ready to start talking about an offer when you discover something important:

Your Realtor is also representing the seller.

Now what?

Can the same Realtor represent both of you?

Whose interests are they protecting?

Can they tell you what to offer?

And should you proceed?

In Ontario, the answer depends significantly on how you and the seller are being represented.

Before making an offer, it's important to understand the difference.

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First: Who Does the Realtor Actually Represent?

One of the most important things a buyer can understand is that working with a Realtor isn't simply about who opens the door or prepares the paperwork.

Representation determines whose interests that Realtor is obligated to protect.

Ontario permits both brokerage representation and designated representation.

Under designated representation, your representation agreement is with the brokerage, but one or more specific agents are named as your designated representative(s). Those designated representatives are responsible for promoting and protecting your best interests and protecting your confidential information. Other agents within the brokerage do not represent you simply because they work for the same company.

That distinction becomes particularly important when the buyer and seller are connected to the same brokerage.

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What If My Realtor Personally Represents the Seller Too?

This is where multiple representation can arise.

Under designated representation, multiple representation occurs when the same designated representative represents both the seller and buyer in the same transaction.

It can also occur if the same designated representative represents two or more competing buyers interested in the same property.

Multiple representation isn't something that should simply happen because you've found a property you like.

Before proceeding, mandatory written disclosure requirements apply, and the affected clients must agree in writing to the multiple representation.

That means you should understand exactly how your representation would change before deciding whether you want to proceed under that arrangement.

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What Changes When the Same Realtor Represents Both Buyer and Seller?

Normally, your designated representative is there to advocate for your interests.

For example, your representative may advise you about:

• the amount you might consider offering;
• conditions that may help protect you;
• negotiating strategy;
• information relevant to your decision;
• how to structure your offer; and
• other matters where your interests may differ from the seller's.

But imagine that same Realtor also represents the seller.

The seller wants the best possible price and terms.

You want the best possible price and terms for you.

Those interests can directly compete.

That's precisely why multiple representation changes the nature of the relationship.

RECO explains that where multiple representation exists, the brokerage or designated representative must treat the competing clients' interests objectively and impartially rather than putting one client's interests ahead of the other's.

That is materially different from having a representative advocating solely for you.

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Does the Same Brokerage Automatically Mean the Same Problem?

No — and this is an important distinction.

Suppose the home you're interested in is listed by an agent from the same brokerage as your Realtor.

That fact alone does not necessarily mean you're in multiple representation.

Under designated representation, different designated representatives within the same brokerage can represent opposing clients in the same transaction.

For example:

Agent A represents the seller.

Agent B represents you, the buyer.

Both agents work for the same brokerage.

If both clients are under designated representation and the agents are separately designated, RECO says this situation is not multiple representation. Each designated representative can continue actively advocating for their own client's interests.

That's one of the significant differences between designated representation and traditional brokerage representation.

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An Example

Imagine you're buying a Burlington home listed for $1,200,000.

The listing agent works for ABC Realty.

Your buyer representative also works for ABC Realty.

At first glance, you might think:

“The same brokerage represents both of us. Isn't that a conflict?”

Not necessarily.

If the seller has Agent Sarah as their designated representative and you have Agent Michael as your designated representative, Sarah can continue advocating for the seller while Michael advocates for you.

Sarah protects the seller's confidential information.

Michael protects yours.

They happen to work under the same brokerage.

Under designated representation, RECO says that does not itself constitute multiple representation.

Now change one fact.

Sarah is representing the seller and Sarah is also your designated representative.

That creates a very different situation.

Now the same designated representative has two clients with competing interests in the same transaction.

That is multiple representation.

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Can I Say No to Multiple Representation?

Yes.

Multiple representation requires the affected clients' consent before the brokerage or designated representative can proceed with representing competing clients.

RECO states that multiple representation is prohibited unless the required disclosure process occurs and the clients provide written consent.

You therefore don't have to simply accept the arrangement because you want the property.

You should understand your alternatives before making that decision.

RECO also states that clients should be advised to seek independent professional advice before consenting to multiple representation.

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What Should I Ask Before Agreeing?

Before you consent, you should clearly understand:

Who represents me?

Who represents the seller?

Are we under designated representation or brokerage representation?

Does this situation constitute multiple representation?

How will the services I receive change?

What advice will my Realtor no longer be able to provide?

How will my confidential information be protected?

What alternatives do I have if I don't consent?

Don't be uncomfortable asking these questions.

You're making what may be one of the largest financial decisions of your life.

Understanding who is advocating for you matters.

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What About Confidential Information?

This is another reason representation matters.

Under designated representation, your designated representative is responsible for protecting your confidential information.

That could include information about:

your motivation to purchase;

your financial circumstances;

your negotiating position;

how much you're prepared to pay; or

other information that could disadvantage you if disclosed.

RECO specifically requires designated representatives to protect client confidential information, while the brokerage also has responsibilities for ensuring that confidential information is protected from other agents who aren't designated to represent that client.

Before entering any multiple-representation situation, make sure you understand how those obligations apply.

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Should I Work Directly With the Listing Agent to Get a Better Deal?

This is another question buyers frequently ask.

There is a misconception that approaching the listing agent directly automatically creates a negotiating advantage.

It doesn't.

The more important question is:

Who is representing your interests?

Saving a step in communication isn't necessarily more valuable than having someone who can advocate for you, advise you and protect your interests throughout the transaction.

And the listing agent's involvement with the seller doesn't automatically mean you'll receive a better price.

The seller ultimately decides what price and terms they are willing to accept.

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What If I Don't Have a Realtor Yet?

If you discover a property before you've chosen your own representative, understand your options before asking the listing agent for advice about what you should offer or how you should negotiate.

Ontario also recognizes the possibility of an implied representation agreement. RECO cautions agents that providing services, opinions or advice without a written agreement can potentially create an implied representation relationship.

It's therefore better for everyone to establish clearly:

Who represents whom?

What services are being provided?

What type of representation applies?

What are everyone's responsibilities?

Before substantive advice and negotiation begin.

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Seeing the same brokerage's name on both sides of an Ontario real estate transaction should not automatically alarm you.

What matters is the representation structure.

With designated representation, different designated representatives from the same brokerage can represent the buyer and seller while continuing to advocate for their respective clients.

But when the same designated representative represents both buyer and seller in the transaction, multiple representation arises.

That's when you need to understand exactly how the relationship changes before deciding whether you're comfortable proceeding.

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Before You Make an Offer, Know Who Represents You.

If you're buying a home in Ontario, our team can explain the buying process, representation options and what to expect before you begin making offers.

If you're already represented by another brokerage or designated representative, we'll respect your existing representation relationship.

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