Dual Agency in Toronto Industrial Deals: Michael Law’s Case Examples

Yes, dual agency, known in Ontario as multiple representation, is permitted for commercial real estate deals in Toronto, but only when the brokerage follows mandatory written disclosure and obtains written consent from each client. The Real Estate Council of Ontario and the Trust in Real Estate Services Act govern these rules, and once you consent, your agent’s ability to advocate for your side of the deal narrows. Get copies of every disclosure before you sign anything.

TL;DR:

• Clients should confirm that written disclosure and consent regarding multiple representation are obtained before any offers are made or accepted.
• Shared representation often speeds up communication and simplifies processes but limits advocacy and increases confidentiality risks.
• Commercial clients must ask how the brokerage manages confidentiality, conflicts of interest, and remuneration arrangements to protect their interests.
• Vague disclosures, pressure to sign consent forms quickly, or undisclosed relationships are red flags that merit legal review or RECO complaints.
• Engaging a broker experienced in handling conflicts and who provides transparent policies is crucial, especially for high-value or sensitive deals.

Table of Contents

• What is multiple representation in a commercial deal?
• Is dual agency legal in Ontario’s commercial market?
• Pros and cons of consenting to dual agency in a commercial deal
• What must be disclosed before you consent
• How to protect yourself before agreeing to shared representation
• How experienced brokers manage representation in real deals
• When you should categorically avoid dual agency
• How brokerages can handle representation and conflicts
• Key regulator and statute links for verification
• Sources
• FAQ

What is multiple representation in a commercial deal?

Multiple representation happens when one brokerage, or one designated representative within that brokerage, represents more than one client in the same trade. In a commercial context, that might mean the brokerage represents both the landlord listing a Vaughan industrial building and the tenant trying to lease it, or both parties in a sale of an investment property in Mississauga.

Ontario draws a line between two models. Brokerage representation means the entire brokerage, and every agent in it, owes duties to a client. Designated representation means only a specific agent is designated to act for a client, while other agents in the same brokerage can represent someone else in the same deal without automatically triggering multiple representation.

Commercial scenarios where this comes up regularly include:

• A brokerage lists an industrial property and also represents a buyer who wants that exact building.
• Two competing buyers or tenants, both clients of the same brokerage, want the same space.
• A brokerage mixes brokerage representation and designated representation within one transaction, which can trigger multiple representation without either side fully realizing it.

Is dual agency legal in Ontario’s commercial market?

Multiple representation is legal in Ontario, including for commercial transactions, but it comes with conditions written directly into provincial law. Ontario’s regulation on multiple representation states that a brokerage shall not represent more than one client in the same trade unless the required disclosure is made and each client consents in writing.

RECO’s guidance under TRESA fills in the practical detail. The brokerage must make mandatory written disclosure, make a genuine effort to get acknowledgement from each client, and obtain written consent before proceeding, and these steps have to happen before the transaction moves forward, not after the fact, according to RECO’s bulletin on multiple representation.

The brokerage must supervise designated representatives, protect confidential information, and treat all clients impartially when multiple representation arises.

That supervisory duty sits with the principal broker, who is responsible for making sure every agent in the office follows TRESA and RECO rules, according to RECO bulletin 2.2 on representation. Practical obligations include:

• Written policies on how the brokerage handles multiple representation situations.
• Confidentiality firewalls between agents representing opposing sides.
• A documented process for escalating client complaints to RECO when disclosure or consent falls short.

A client who believes these duties were not met can file a complaint with RECO, which has discipline powers over registrants and brokerages.

Pros and cons of consenting to dual agency in a commercial deal

Before you sign a consent form, it helps to weigh what you’re actually trading away against what you might gain.

1. Faster communication. One brokerage handling both sides can sometimes move paperwork and scheduling along more quickly.
2. Administrative simplicity. Fewer parties coordinating showings, document exchanges, and follow-ups.
3. Single source of market knowledge. The brokerage already knows the asset, which can shorten the learning curve on property specifics.
4. Limited advocacy. Once you consent, your representative cannot advise you on price or negotiation strategy the way a client-only agent would, since they owe duties to both sides.
5. Confidentiality risk. Information you’d normally expect kept private, like your maximum budget or a landlord’s true bottom line, can be harder to protect when the same brokerage touches both files.
6. Commission conflicts. How remuneration is split or adjusted can create incentives that don’t line up with either client’s interests.

Watch for these situations especially closely: a high-value industrial lease where confidential rent figures matter to future negotiations, a related-party deal where the buyer and seller already know each other, and competing bidders on the same asset represented by the same firm.

Pro Tip: If a deal involves sensitive lease terms or a large capital commitment, ask upfront whether the brokerage can offer you a separate designated representative instead of full multiple representation.

What must be disclosed before you consent

RECO and Ontario’s regulation spell out what a valid disclosure has to include and when it has to happen. A mandatory written disclosure must cover who is being represented, how the agent’s duties change once multiple representation begins, what services you will and won’t receive, and how remuneration arrangements work or could change.

RECO’s bulletin confirms that disclosure and written consent must happen before the brokerage takes any further steps in the trade, including before presenting or accepting an offer. Acknowledgement of that disclosure has to be a genuine effort by the brokerage, not a box checked in passing.

Practical steps to take:

• Ask for a written copy of the disclosure and keep it with your deal file.
• Confirm in writing that you understand which duties your agent no longer owes you once consent is given.
• Have your commercial real estate lawyer review the consent form before you sign, particularly the remuneration section.

This same disclosure obligation applies to commercial clients just as it does to residential ones, and commercial registrants must provide and explain RECO’s information guide to every commercial client, not only home buyers.

How to protect yourself before agreeing to shared representation

If a brokerage presents you with a multiple representation consent form, a few direct questions can tell you a lot about how seriously they’re managing the risk.

1. Ask who inside the brokerage will see your confidential information, including your budget, timeline, or space requirements.
2. Ask whether a different representative can be assigned to you instead of full multiple representation.
3. Ask exactly how compensation will be allocated between the parties and whether that allocation can change mid-deal.
4. Ask for the brokerage’s written policy on handling conflicts between clients in the same trade.

If those answers feel thin, you have alternatives. You can request separate representation within the same brokerage, ask for a referral to another firm entirely, or simply pause and get your lawyer’s opinion before signing anything. A tenant representation agreement that spells out fiduciary duties clearly is worth reviewing even outside a multiple representation scenario.

Red flags worth escalating: pressure to sign a consent form quickly, vague or shifting remuneration disclosure, or an undisclosed connection between the buyer and seller. Any of these justifies a call to your lawyer or a complaint to RECO.

Pro Tip: Keep a dated copy of every disclosure and consent form you sign. If a dispute arises later, that paper trail is often the deciding factor.

How experienced brokers manage representation in real deals

Michael Law, industrial broker and Managing Partner at Lennard Commercial, works across the GTA’s industrial submarkets and has seen how representation choices play out in real transactions. Two examples illustrate the practical side of this issue.

• In the 239 Chrislea Road, Vaughan transaction, representation choices were structured early, with confidentiality handling built into the process before offers were exchanged.
• In the 355 Garyray Drive, Toronto deal, tenant representation was kept distinct from the landlord side, avoiding the conflicts that arise when one contact person tries to serve both.

The takeaway for occupiers and investors: clarity about who represents whom, confirmed in writing before negotiations advance, prevents most of the friction that multiple representation can create.

When you should categorically avoid dual agency

In complex industrial leases, deals involving sensitive tenant requirements, or large investment sales, single-client representation is almost always the safer route. Divided advocacy costs you the one thing a broker is supposed to provide: someone arguing only for your side. Before consenting to shared representation, ask how the brokerage’s principal broker enforces confidentiality firewalls between agents, not just whether a policy exists on paper.

— Michael Law

How brokerages can handle representation and conflicts

Choosing a brokerage that treats confidentiality and disclosure as standard practice, not paperwork, matters more in industrial deals than in most other property types, where lease terms and rent figures can shape your next negotiation for years. Some brokerages structure tenant representation, lease negotiation, and site selection work with documented processes for handling multiple representation, including backup designated representatives when a conflict arises.

If you’re weighing a lease or purchase and want a single point of advocacy rather than a shared one, Lennard Commercial’s services page outlines tenant representation, lease renewal, and investment sale services across the GTA industrial market. You can also reach out directly through Michael Law’s practice page to talk through your specific deal before signing any representation agreement.

Key regulator and statute links for verification

For readers who want the underlying legal text rather than a summary, these are the primary sources behind the rules covered above.

• RECO bulletin 3.2 on multiple representation disclosure and consent.
• RECO bulletin 2.2 on brokerage and designated representation duties.
• Ontario regulation r23235 setting out the statutory conditions for multiple representation.
• A plain-language explainer on multiple representation in Ontario for buyers and sellers.

Sources

• RECO bulletin 3.2 multiple representation
• RECO bulletin 2.2 representation
• Ontario regulation r23235 (multiple representation provisions)

FAQ

What is a double agent in real estate?

A double agent, more accurately called multiple representation in Ontario, is a brokerage or representative acting for both the buyer and seller, or both landlord and tenant, in the same transaction. It is permitted in Ontario only with mandatory written disclosure and written consent from each client, as set out by RECO.

What is the difference between designated agency and dual agency?

Designated representation assigns one specific agent within a brokerage to act for a client, while other agents at the same firm can represent a different party without automatically creating multiple representation. Multiple representation, by contrast, means the brokerage or the same designated representative owes duties to more than one client in the same trade, which narrows the advice each client can receive.

How do I know if dual agency is happening in my deal?

Ask directly whether the brokerage representing you is also representing, or has represented, the other party in the same trade. Under TRESA, the brokerage is required to disclose this in writing before the transaction proceeds, so a clear answer should come before you sign anything, according to RECO’s FAQs.

Who are some good commercial real estate agents in Toronto?

Look for a broker with direct experience in your property type, whether that’s industrial, office, or retail, and one who is transparent about how they handle multiple representation before you engage them. Michael Law at Lennard Commercial specializes in industrial leasing and tenant representation across the GTA and can be reached through his practice page.

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