As of December 1, 2023, there were some major changes made to the way Real Estate Agents and Brokerages can conduct business going forward. One of these changes was the introduction of Designated Representation in Ontario. So What is Designated Representation? 

Short answer it reduces the chances of ending up in multiple representation (Where two or more agents from the same brokerage represent both the buyer and seller in the same transaction).

Here's how designated representation works:    

Designated Representation for Buyers: When a buyer engages a real estate brokerage to help them purchase a property, the brokerage may assign a specific agent within the brokerage to act exclusively on behalf of the buyer's interests. This designated buyer representative works closely with the buyer, providing guidance, assistance, and advocacy throughout the home-buying process.    

Designated Representation for Sellers: Similarly, when a seller lists their property with a real estate brokerage, the brokerage may designate a specific agent to represent the seller exclusively. This designated seller representative is responsible for marketing the property, negotiating offers, and advocating for the seller's interests throughout the selling process.

Confidentiality and Loyalty: In designated representation, the designated agent owes a duty of confidentiality and loyalty to their client (either the buyer or the seller). They are required to act in their client's best interests, maintain confidentiality regarding any sensitive information, and avoid conflicts of interest.    

Avoiding Multiple Representation : Designated representation helps to avoid the potential conflicts of interest that can arise in multiple representation situations, where one agent represents both the buyer and the seller in the same transaction. In Ontario, multiple representation is still permitted, however only under specific conditions and with the informed consent of both parties.

Overall, designated representation is a practice aimed at providing clients with dedicated representation and advocacy in real estate transactions while ensuring transparency, confidentiality, and adherence to ethical standards.