Designated representation means the brokerage provides you services but not representation — one or more named individuals represent you “to the exclusion of the brokerage and all of the other brokers and salespersons”. It appears nowhere in TRESA; the whole regime is in O. Reg. 567/05. Because the brokerage no longer represents you, the best-interests duty in section 8 of the Code of Ethics attaches to your designated representative, not the firm. Your representative may not share your confidential information with anyone at the brokerage — including the broker of record — without your authorisation. And the structural consequence: where two agents at one firm represent buyer and seller, multiple representation is not engaged at all. But section 22.0.3 still requires every competing bidder to be told the brokerage is serving both sides.
Since 1 December 2023 Ontario brokerages have been able to use something called designated representation. If you have signed a real estate agreement in the last two years you have probably signed one. Almost nobody explains what it changes, and the most important consequence is one that no sales presentation mentions.
Here is the thing to understand first: designated representation appears nowhere in the statute. The words “designated representative”, “designated representation agreement” and “multiple representation” do not occur anywhere in the Trust in Real Estate Services Act, 2002. The entire regime lives in a regulation, O. Reg. 567/05, made under the Act’s regulation-making power in section 51(1). Anyone who cites “TRESA section such-and-such” for designated representation is citing something that does not exist.
The two kinds of representation agreement
O. Reg. 567/05, section 2(1) defines both. The difference is one clause long and it decides everything that follows.
| Brokerage representation agreement | Designated representation agreement | |
|---|---|---|
| Who represents you | The brokerage and every broker and salesperson employed by it | One or more named individuals, “to the exclusion of the brokerage and all of the other brokers and salespersons employed by the brokerage” |
| What the brokerage provides | Services including representation | Services, but not representation |
| Who owes you the best-interests duty | The brokerage and its registrants | Your designated representative |
The definition of “client” in section 1(1) is split along exactly the same line. Under a brokerage agreement a client “receives services, including representation, from the brokerage”. Under a designated representation agreement a client “receives services, but not representation, from the brokerage”.
That phrase is not a technicality. It is the whole mechanism, and section 8 of the Code of Ethics now reads “A registrant that represents a client shall promote and protect the best interests of the registrant’s clients.” Those five words were inserted in 2023. Under designated representation the brokerage does not represent you, so the best-interests duty attaches to the individual named in your agreement — not to the firm on the sign.
What your agreement must contain
Section 13.4(1) is prescriptive, and a designated representation agreement has to carry more than a brokerage one. The agreement must set out, “clearly, comprehensibly and prominently”:
- The date it takes effect and the date it expires.
- How any remuneration to the brokerage is determined — and on the seller side, to any other brokerage as well.
- Every circumstance in which that amount may change, how it may change, and whether another brokerage may be paid.
- How remuneration will be paid.
- The services the brokerage will provide and, in a designated representation agreement, “the fact that the brokerage will not provide representation”.
- In a designated representation agreement: the name of each designated representative, the services they will provide, the brokerage’s duties under section 22.0.4, and the representative’s duty under section 22.0.5.
- “The terms related to termination of the agreement, if any.”
And three formal requirements that are easy to check on the page in front of you: the expiry date must be displayed prominently on the first page; you must have initialled next to the expiry date; and section 13.4(2) requires the agreement to contain exactly one expiry date.
If the agreement in front of you names a designated representative but does not say in terms that the brokerage will not provide representation, or does not reproduce the section 22.0.4 and 22.0.5 duties, it does not meet section 13.4(1). That is worth raising before you sign, not afterwards.
The confidentiality wall, and how absolute it is
Section 22.0.5 is one sentence and it is unusually strict:
“Every designated representative shall protect the confidential information of every client represented by the designated representative, including by not disclosing a client’s confidential information to any other broker or salesperson employed by the same brokerage or any other person, unless the disclosure is authorized by the client or required by law.”
There is no carve-out for the broker of record, for a manager, or for a supervising broker. The two exceptions are exhaustive: your authorisation, or a legal requirement. I am a broker of record, and this provision means that if two of my agents represent opposite sides of the same deal under designated representation agreements, I am not entitled to be told either side’s confidential information either.
The brokerage’s own duties are in section 22.0.4. It must protect each client’s confidential information, “treat the interests of all the brokerage’s clients that have entered into designated representation agreements in an objective and impartial manner”, supervise every designated representative, and — if your representative becomes unable to act — designate a replacement, “if the client so agrees”. You cannot be reassigned without your agreement.
A mismatch worth knowing about. Section 22.0.5 permits disclosure where “authorized by the client” and does not specify a form. Section 12 of the Code of Ethics requires the client’s consent to be in writing. The stricter standard is the one a registrant is judged against for ethics purposes, so treat written consent as the rule.
Multiple representation: three regimes, and people confuse them constantly
TRESA does not ban multiple representation. O. Reg. 567/05 creates three separate consent regimes, and each requires written consent from every client.
| Provision | The situation | Who must disclose |
|---|---|---|
| s.22 | The brokerage represents more than one client in the same trade | The brokerage |
| s.22.0.1 | One designated representative represents two clients in the same trade — the true double-end under designated representation | The brokerage, not the representative |
| s.22.0.2 | The brokerage represents one client under a brokerage agreement while a designated representative represents another in the same trade | The brokerage |
Under section 22 the disclosure must cover the fact of the proposal and “the differences between the duties the brokerage would have if it represented only one client… and the duties… if it represented more than one”, including differences in duties, services and remuneration arrangements. Consent must be in writing, and the brokerage must make best efforts to obtain a written acknowledgement and give you a copy of it.
The consequence nobody puts in the brochure
Where a brokerage uses designated representation and Agent A represents the seller while Agent B at the same firm represents the buyer, section 22 is not engaged at all. The brokerage is not representing two clients, because under a designated representation agreement it provides services but not representation. Section 22.0.1 is not engaged either, because no single representative has two clients.
So the in-house double end stops being “multiple representation” and becomes two separately represented clients with a confidentiality wall between them. That is the structural reason designated representation is attractive to brokerages, and it is a legitimate structure. But it means the words “multiple representation” may never appear in your paperwork on a deal where one firm is collecting both sides.
One disclosure survives that structure, and it is the one to look for. Section 22.0.3 requires that where a brokerage provides services to both a seller and a buyer in the same trade, it must disclose that fact to every other buyer who makes a written offer, as soon as possible after receiving the offer and before any offer is accepted. The trigger word is “provides services”, not “represents” — so the designated representation structure does not avoid it. If you are a competing bidder, you are entitled to be told that the listing brokerage is also serving one of the people bidding against you.
You may have an agreement without signing anything
The definition of “representation agreement” in section 1(1) covers a “written, oral or implied” agreement. An implied representation agreement is possible.
Section 1(6), added in 2023, sets the boundary. These do not create an implied agreement:
- Assistance given to another person as a service to, or incidental to a service to, an existing client, “without encouraging the other person to rely on the broker’s or salesperson’s skill or judgment”.
- Providing general information about the business of trading in real estate.
The dividing line in both is encouraging reliance. And where the agreement is oral or implied, sections 13.5 and 13.6 require it to be reduced to writing — on the seller side before any buyer makes an offer, on the buyer side before the buyer makes an offer.
What to ask before you sign
- Is this a brokerage or a designated representation agreement? The agreement must say, and a designated one must state that the brokerage will not represent you.
- Who exactly is named as my designated representative? It must be by name.
- What happens if that person becomes unavailable? Section 22.0.4(d) says a replacement can only be designated if you agree.
- If someone at this firm represents the other side, what will I be told? The answer depends on which of sections 22, 22.0.1 and 22.0.2 applies — and section 22.0.3 applies regardless.
- Where is the expiry date, and have I initialled it? It must be prominent, on page one, and there must be only one.
One last note on how far the rules have been drafted rather than legislated: no circumstances have been prescribed under section 51(1) paragraph 19.1, the power that would let the province prohibit a registrant from representing more than one party outright. The power exists. It is unused.
Not sure what you signed, or what it means for your deal?
Send me the first page of your representation agreement and I will tell you which kind it is, who owes you what, and what has to be disclosed to you if the same firm ends up on both sides. I am the broker of record at my brokerage, which means I am the person legally accountable for exactly these rules, and I am happy to read someone else’s paperwork without any expectation that you move your business. No cost, no obligation.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
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Frequently asked questions
What is designated representation in Ontario real estate?
It is an arrangement under which a brokerage provides you services but not representation, and one or more named brokers or salespersons represent you to the exclusion of the brokerage and everyone else employed by it. It is defined in section 2(1) of O. Reg. 567/05 under the Trust in Real Estate Services Act, 2002 and has been available since 1 December 2023. The term appears nowhere in the Act itself; the entire regime is in the regulation, made under the regulation-making power in section 51(1).
Does my brokerage still owe me a duty under designated representation?
Some duties, but not the best-interests duty. Section 8 of the Code of Ethics was amended in 2023 to read that a registrant that represents a client shall promote and protect the best interests of the client. Under a designated representation agreement the brokerage does not represent you, so that duty attaches to your designated representative. The brokerage retains the duties in section 22.0.4 of O. Reg. 567/05: protecting each client’s confidential information, treating the interests of all its designated-representation clients objectively and impartially, supervising every designated representative, and designating a replacement if yours cannot act, but only if you agree.
Can my agent tell the broker of record what I am willing to pay?
Not without your authorisation. Section 22.0.5 of O. Reg. 567/05 requires a designated representative to protect the confidential information of every client, including by not disclosing it to any other broker or salesperson employed by the same brokerage or any other person, unless the disclosure is authorised by the client or required by law. There is no exception for the broker of record, a manager or a supervising broker. Section 12 of the Code of Ethics requires that client consent be in writing, which is the safer standard.
Is multiple representation still allowed in Ontario?
Yes. TRESA does not ban it. O. Reg. 567/05 creates three separate regimes, each requiring written consent from every client after disclosure: section 22 where the brokerage represents more than one client; section 22.0.1 where a single designated representative represents two clients in the same trade; and section 22.0.2 where the brokerage represents one client under a brokerage representation agreement while a designated representative represents another in the same trade. Note that under sections 22.0.1 and 22.0.2 it is the brokerage, not the representative, that must make the disclosure.
If two agents at the same firm represent the buyer and the seller, is that multiple representation?
Under designated representation agreements, no. Section 22 is not engaged because the brokerage is not representing more than one client — under a designated representation agreement it provides services but not representation. Section 22.0.1 is not engaged either, because no single designated representative has two clients. The in-house double end becomes two separately represented clients with a confidentiality wall between them. This is the structural reason designated representation is attractive to brokerages.
What must I be told if I am bidding against a client of the listing brokerage?
Section 22.0.3 of O. Reg. 567/05 requires that if a brokerage provides services to both a seller and a buyer in respect of the same trade, it must disclose that fact to every other buyer who makes a written offer, as soon as possible after receiving the offer and before an offer is accepted. The trigger is providing services, not representing, so the designated representation structure does not avoid this disclosure. The brokerage must also make best efforts to obtain a written acknowledgement and give you a copy of it.
Can I have a representation agreement without signing one?
Yes. Section 1(1) of O. Reg. 567/05 defines a representation agreement as a written, oral or implied agreement. Section 1(6) sets the limits: an implied agreement does not arise where a broker or salesperson provides assistance to another person as a service to, or incidental to a service to, a client without encouraging that person to rely on their skill or judgment, or where a brokerage provides general information about trading in real estate. The dividing line is encouraging reliance. Where an agreement is oral or implied, sections 13.5 and 13.6 require it to be put in writing — on the seller side before any buyer makes an offer, on the buyer side before the buyer makes an offer.
What must a designated representation agreement contain?
Section 13.4(1) requires it to set out clearly, comprehensibly and prominently: the effective and expiry dates; how remuneration to the brokerage, and on the seller side to any other brokerage, is determined; every circumstance in which that amount may change and how; the method of payment; the services the brokerage will provide and the fact that it will not provide representation; the name of each designated representative, the services they will provide, and the text of the brokerage’s section 22.0.4 duties and the representative’s section 22.0.5 duty; and the terms related to termination, if any. The expiry date must appear prominently on the first page, you must initial next to it, and section 13.4(2) requires exactly one expiry date in the agreement.
Related reading
- Competing offers: what a seller can actually let you see
- Representation agreements: what the rules do and do not say
- RECO complaints and discipline: what actually happens
- Deposits and brokerage trust accounts in Ontario
Sources
Every figure on this page traces to one of these, and each was read on 1 September 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Trust in Real Estate Services Act, 2002 (formerly the Real Estate and Business Brokers Act, 2002), S.O. 2002, c. 30, Sched. C. Government of Ontario e-Laws, read 2 September 2026 through the e-Laws JSON API. Consolidation period from 1 December 2023 to the e-Laws currency date, which the currency-date endpoint gives as 28 August 2026. The words designated representative, designated representation agreement, brokerage representation agreement and multiple representation do not appear anywhere in the Act; the regulation-making power is in section 51(1), paragraphs 18 v and 19 to 19.3. Accessed 1 September 2026.
- O. Reg. 567/05, General, under the Trust in Real Estate Services Act, 2002. Government of Ontario e-Laws, read 2 September 2026. Contains the entire operative designated representation regime at sections 1, 2, 13.3.1, 13.4, 22 to 22.0.5, the competing offer rules at sections 22.7 and 22.8, the deposit rules at sections 14 to 19, the disclosure of interest rule at section 22.9 and the financial benefit rule at section 23.1. Amended by O. Reg. 357/22 and O. Reg. 235/23, both effective 1 December 2023. Accessed 1 September 2026.
- O. Reg. 365/22, Code of Ethics, under the Trust in Real Estate Services Act, 2002. Government of Ontario e-Laws, read 2 September 2026. The current code of ethics, in force 1 December 2023. The word customer appears in it zero times. Section 8 imposes the best interests duty on a registrant that represents a client; section 10 prohibits providing services, opinions or advice to a self-represented party; section 12 requires written client consent before disclosing confidential information. Accessed 1 September 2026.
- O. Reg. 367/22, Discipline Committee, under the Trust in Real Estate Services Act, 2002. Government of Ontario e-Laws, read 2 September 2026. Section 6 imposes a two-year limitation on referring a matter to the discipline committee. Section 15 requires the registrar to publish final decisions on the administrative authority website and in at least one other manner, and to keep them available for at least sixty months. Accessed 1 September 2026.
- O. Reg. 579/05, Educational Requirements, Insurance, Records and Other Matters. Government of Ontario e-Laws, read 2 September 2026. Section 19 sets the general record retention period at six years; section 20 requires a brokerage acting for a seller to retain an unsuccessful written offer, or a document containing nine prescribed particulars about it, for at least one year. Section 14 requires trust shortfalls to be reported immediately. Accessed 1 September 2026.
- O. Reg. 580/05, Code of Ethics (revoked). Government of Ontario e-Laws. Carries the notice that the regulation was revoked on 1 December 2023, by O. Reg. 365/22, section 17. This is the former code of ethics, which contained the in-house appeals committee at sections 42 to 45 that no longer exists. Accessed 1 September 2026.
- Licence Appeal Tribunal, General Service — laws, rules and decisions. Tribunals Ontario, page modified 20 February 2026. Lists the Trust in Real Estate Services Act, 2002 among the statutes the Licence Appeal Tribunal hears appeals under, and states that decisions are also posted on the Canadian Legal Information Institute website. Accessed 1 September 2026.
- Legislation Act, 2006, S.O. 2006, c. 21, Sched. F. Government of Ontario e-Laws. Section 87 defines holiday, which is how Sunday is excluded from the five business day deposit rule in O. Reg. 567/05, section 17, even though Sunday is not named in that section. Accessed 1 September 2026.
- Real Estate Council of Ontario. The administrative authority that administers the Trust in Real Estate Services Act, 2002. Every path on this website returned HTTP 403 to automated retrieval on 2 September 2026, an affirmative server-side block rather than an absence, so nothing on this page relies on RECO material. Every rule stated here is quoted from the statute or regulation on e-Laws, which is the authoritative source in any event. Accessed 1 September 2026.
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. A broker of record is the person legally accountable for a brokerage’s compliance with the Trust in Real Estate Services Act, 2002 and its regulations, so these pages are written from the rulebook I am personally answerable to.
Everything below is quoted from the statute or the regulation, with the section number, so you can check it yourself rather than take my word for it. Where the law is silent, or where a widely repeated claim turns out not to be in the legislation at all, the page says so plainly. This is general information about the rules, not legal advice about your situation. connect@jatindua.com or 437-987-1925.