General information only: rules, fees, tax treatment, and processes can change. Confirm current requirements with the applicable regulator or a qualified legal, tax, financial, immigration, or compliance adviser.
Key Takeaways
- The two arrangements describe different ways a brokerage can handle clients with competing interests.
- Designated representatives are assigned to individual clients; the brokerage still has duties to its clients.
- Multiple representation requires informed consent and changes the duties the brokerage or representative can perform for each side.
- Ask for the applicable disclosure and take independent legal advice if the choice affects a live transaction.
The decision in one question
Ask who represents whom, what information stays confidential and what consent is requested. The written explanation matters more than the label alone.
This article is general information, not legal, tax, financial, immigration, or compliance advice. Confirm current requirements with the relevant official authority and qualified advisers.
The short answer: ask who can advocate for whom
With designated representation, each client has a designated representative within the same brokerage. With multiple representation, one representative or the brokerage represents clients on both sides of the same transaction. The important question is not which label sounds better; it is what duties, confidentiality, and consent apply to your situation.
How the arrangements differ
Designated representation is intended to keep client-specific instructions and confidential information with the designated representative, subject to the brokerage's duties and the applicable law. Multiple representation requires the prescribed disclosure and informed consent, and the ability to advise or negotiate for either side is limited by the conflict.
- Designated representation: a representative is designated for each client.
- Multiple representation: the same representative or brokerage serves clients with competing interests.
- In either case: read the disclosure and ask what information can be shared.
What to do when the issue arises
Ask the brokerage to explain the arrangement in writing before consenting. If you do not understand the consequences, pause and get independent legal advice. The agreement and current TRESA rules—not a general article—control your transaction.