Transaction Brokerage in Nova Scotia (Just like Multiple Representation)
Ontario calls it “multiple representation” and Now Nova Scotia calls it “transaction brokerage”.
The Nova Scotia Real Estate Commission talks about “transaction brokerage” on its website:
Transaction brokerage occurs when a real estate brokerage or a designated agent represents two or more parties in the same trade, for example, both the buyer and seller, or two or more buyers.
As an impartial facilitator, the brokerage or the designated agent treats both parties in an even-handed and impartial manner. Because the transaction facilitator’s obligations to the clients are restricted, entering into transaction brokerage requires the written consent of both parties prior to the facilitation of a transaction.
The client is not obligated to proceed with a real estate transaction under transaction brokerage. All parties must be provided with an opportunity to obtain independent advice or alternative representation from another brokerage or designated agent as an alternative to transaction brokerage.
In transaction brokerage, the transaction facilitator will, for both parties:
· explain real estate terms and practices;
· provide and explain forms;
· identify and estimate service costs of other professionals involved in a transaction;
· prepare offers and counter offers at your direction;
· present all offers and counter offers promptly; and
· give true (identical) copies of all agreements.
In transaction brokerage, the transaction facilitator cannot for either party:
· make recommendations about the transaction, for example, what you should offer/counter offer;
· assist with negotiation;
· inform of their other party’s top/bottom line; or
· disclose any confidential information about the other party unless specifically authorized to do so.
It is not appropriate to enter into transaction brokerage in certain situations, including when the transaction facilitator:
· is representing family, colleagues or themselves;
· has an ongoing agency relationship with one of the parties, like a builder or developer; or
· is representing a novice seller or buyer.”
This is just like “multiple representation” in Ontario. The same rules apply. The real estate practitioner has the same limited duties and responsibilities.
The role appears to be that of an “impartial facilitator”.
Brian Madigan LL.B., Broker