Informed consent means a client agreed to something — typically multiple representation or a conflict of interest — only after receiving the specific written disclosure TRESA requires and having a real chance to understand it, not simply after signing a form. RECO Bulletin 3.1 requires every disclosure and consent to be “written in plain language that is clear and concise” and “presented in a manner that draws the person’s attention to the required information”.
The clearest example is multiple representation. Bulletin 3.2 sets a fixed order: first the brokerage makes the mandatory written disclosure, then the brokerage makes best efforts to obtain an acknowledgement that the disclosure was received, and only after that each existing or prospective client, having received the disclosure, provides written consent. Until every client involved has agreed in writing, the brokerage or designated representative cannot take any further steps on behalf of any of the clients.
Consent and acknowledgement are not the same step, and Bulletin 3.1 keeps them distinct: an acknowledgement confirms a disclosure was received, while consent is the client’s affirmative approval to something specific — multiple representation, a financial benefit, or a related-party interest. Bulletin 3.5’s conflicts-of-interest sequence keeps the two in a fixed order for the same reason: disclosure, then advice to seek independent counsel, then confirming understanding, and consent comes last, not first.
Once consent has been properly obtained for multiple representation, its limits are real: the brokerage or designated representative can no longer advocate for either client’s best interests over the other’s and cannot advise on the price a client should offer or accept, or on terms to include.
A brokerage represents a seller and a new buyer wants to make an offer on the same property, also through that brokerage, under brokerage representation. Before anything else happens, the brokerage must give both clients written disclosure covering how their duties will change, how services will differ, and whether fees change. Only once both clients have received that disclosure and confirmed it in writing can the brokerage seek their consent — and only after consent is given, in writing, from both, can it take a single further step on the file. If either client declines, RECO’s guide is direct: the brokerage is not allowed to proceed for either of them, and should be ready to offer an alternative, such as referring one client to another brokerage or representative.
See also: multiple representation and remuneration disclosure.
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