- When a real estate agent represents you, they owe you a set of legal duties: loyalty, confidentiality, disclosure, obedience to lawful instructions, and competent service.
- Dual agency arises when the same registrant — either an individual agent or a brokerage — represents both the buyer and the seller in the same transaction.
- Beyond dual agency, buyers and sellers bring complaints about agents for: Failure to Disclose Material Information Agents have a duty to disclose material facts about a property — facts…
Most Ontario home buyers and sellers trust their real estate agent completely. That trust is usually well-placed — but when it isn't, the consequences can be severe: a deal that collapses, a price that's far off market, a defect that wasn't disclosed, or a conflict of interest that cost you tens of thousands of dollars. Dual agency and real estate agent complaints in Ontario are real and growing concerns, particularly as commission structures and brokerage models evolve.
This article explains how agency works in Ontario real estate, what conflicts of interest look like in practice, and what you can do when an agent's conduct falls short.
Understanding Agency in Ontario Real Estate
When a real estate agent represents you, they owe you a set of legal duties: loyalty, confidentiality, disclosure, obedience to lawful instructions, and competent service. These duties flow from the agency relationship — you are the principal, they are your agent, acting on your behalf.
But Ontario real estate transactions involve two agents (and sometimes only one). Understanding who represents whom is essential:
- Seller's agent (listing agent): retained by the seller to market the property and represent the seller's interests
- Buyer's agent: retained by the buyer to help find property and represent the buyer's interests
- Dual agent: one agent (or one brokerage) attempting to represent both buyer and seller in the same transaction
What Is Dual Agency?
Dual agency arises when the same registrant — either an individual agent or a brokerage — represents both the buyer and the seller in the same transaction. This creates an inherent conflict of interest.
Consider: the seller wants the highest price. The buyer wants the lowest price. An agent who genuinely represents both cannot fully advocate for either. The fiduciary duty of loyalty is fundamentally compromised.
Multiple Representation Under Ontario's Rules
Ontario's regulations under the Real Estate and Business Brokers Act (as of writing — verify current rules) address multiple representation and require informed, written consent from all parties before it can proceed. Agents must disclose the conflict, explain what duties they cannot fulfill in a multiple representation situation (particularly the duty of full confidentiality and zealous advocacy), and obtain consent.
Even with consent, dual agency in practice often benefits one side. Studies and case law have documented situations where multiple representation led to:
- Buyers overpaying because the agent shared the buyer's maximum budget with the seller
- Sellers accepting less because the agent prioritized a quick commission over maximum price
- Material information flowing improperly between the parties through the shared agent
The "Designated Representation" Alternative
Some brokerages manage multiple representation by designating different agents within the same brokerage to represent each side independently. This is called designated representation and is intended to maintain independent advocacy while keeping the transaction within one brokerage. Whether this adequately protects both parties is a matter of real debate.
Common Grounds for Agent Complaints
Beyond dual agency, buyers and sellers bring complaints about agents for:
Failure to Disclose Material Information
Agents have a duty to disclose material facts about a property — facts that might reasonably affect a buyer's decision to purchase or the price they'd pay. An agent who knew about a flooding history, a zoning issue, or a defect and failed to disclose it may face both regulatory and civil liability.
Negligent Valuation or Advice
If an agent recommended a price (or accepted an offer) that was far below or above market value through careless work, and you suffered a financial loss as a result, you may have a negligence claim. This is particularly relevant in rapidly changing markets.
Misrepresentation to Clients
If an agent told you something false — about the property, about the competing offers, about the neighbourhood, about what the other side was willing to accept — that can ground both a regulatory complaint and a civil action.
Breach of Confidentiality
Your agent must keep your confidential information — your financial ceiling, your motivation to buy or sell quickly, your personal circumstances — from the other side. An agent who divulges a buyer's maximum budget to the seller has breached a fundamental duty.
Phantom Offers and Bid Manipulation
A serious and well-documented problem: agents who fabricate competing offers to pressure a buyer to waive conditions or increase their price. If you suspect you were manipulated by a fake competing offer, document everything and seek legal advice.
The RECO Complaint Process
The Real Estate Council of Ontario (RECO) is the regulatory body that governs Ontario real estate agents and brokerages. If an agent's conduct violated their professional obligations, you can file a complaint with RECO.
RECO can:
- Investigate the agent's conduct
- Impose fines and conditions
- Suspend or revoke registration
- Refer serious matters to the Discipline Committee
What RECO cannot do: award you financial compensation. The regulatory process is about professional discipline, not your personal remedy. If you want money, you need a civil lawsuit.
Civil Claims Against Agents
In parallel with (or instead of) a RECO complaint, you may sue the agent and their brokerage in Ontario civil court for:
- Negligence: breach of the standard of care of a competent real estate professional
- Breach of fiduciary duty: where a true fiduciary relationship existed
- Fraudulent misrepresentation: where the agent made false statements they knew to be false
- Negligent misrepresentation: where false statements were made carelessly
Brokerages are typically vicariously liable for their agents' conduct in the course of their duties.
Frequently asked questions
Can I refuse dual agency?
Absolutely. You are never required to consent to multiple representation. If your agent also represents the seller, you can insist on having an independent agent represent you. You can also withdraw consent if you initially agreed but become uncomfortable with how the situation is developing.
Is dual agency always harmful?
Not always. In some situations — for example, a straightforward deal where both parties are sophisticated and the price is clearly established by comparable sales — multiple representation proceeds without incident. The problem is that the harm is often invisible; you may never know you could have done better with independent representation.
What evidence do I need for an agent negligence claim?
You need to show: what the agent did or failed to do; what a competent agent in the same situation should have done; and how the gap between the two caused you a measurable financial loss. An expert opinion from another experienced real estate professional can help establish the standard of care.
How long do I have to file a complaint with RECO or sue?
RECO complaint timelines are set by their own rules — check the current RECO process. For civil claims, Ontario's general two-year limitation period applies from when you knew (or ought to have known) of the agent's misconduct and your resulting loss.
This is a real estate question
Start a file online — flat, published fees, reviewed by a licensed Ontario lawyer before a dollar is owed.