Multiple representation happens when a designated representative or a brokerage represents more than one client with competing interests in the same transaction. RECO’s consumer guide states it directly: “multiple representation means a designated representative or brokerage represents more than one client, with competing interests, in the same transaction”, and it is prohibited unless the brokerage first makes the mandatory written disclosure, obtains an acknowledgement it was received, and then each client agrees in writing.
What actually triggers it depends on the representation model. Under brokerage representation, it exists whenever the brokerage represents both the buyer and seller, or two or more competing buyers on the same property, even across different individual agents. Under designated representation, it exists only when the same designated representative acts for both the buyer and seller, or for two or more competing buyers on the same property. That is why RECO calls designated representation an important tool for reducing multiple representation — two different designated representatives at one brokerage, one per client, avoids it entirely.
Once multiple representation is properly consented to, RECO Bulletin 3.2 sets hard limits on what the brokerage or representative can still do: they can no longer advocate for either client’s best interests over the other’s, and they cannot advise either client on price or on terms to include in an agreement of purchase and sale. A related but distinct rule sits in Bulletin 6.2 — using multiple representation mainly as a way to secure a seller’s payment toward a buyer’s brokerage fee can itself raise a conflict-of-interest and fiduciary-duty concern, separate from the multiple-representation consent question.
Clients are never obligated to agree. RECO’s guide is explicit that if a client declines, the brokerage or designated representative is not allowed to proceed, and should be able to offer an alternative such as a referral to another brokerage or representative for that specific transaction.
A brokerage represents a seller through brokerage representation. A buyer, already a client of the same brokerage under a separate brokerage representation agreement, wants to offer on that exact listing. The moment that offer is being prepared, this is multiple representation — regardless of which two individual salespeople are involved, because the brokerage itself sits on both sides. Before either client’s agent can take a further step, the brokerage must disclose in writing how duties and services will change for both, obtain acknowledgement, and get written consent from both. If the seller had instead signed a designated representation agreement naming one specific agent, and the buyer a separate one naming a different agent at the same firm, the same scenario would not be multiple representation at all under the designated model.
See also: designated representation, informed consent and fiduciary duty.
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