⚖️ When It Applies

Transaction Brokerage is only permitted under Alberta’s Designated Agency model when:

• Both parties are existing clients of your brokerage.
  
  

• The seller has signed an Exclusive Seller Representation Agreement (ESRA).
  
  

• The buyer has signed an Exclusive Buyer Representation Agreement (EBRA).
  
  

• Both parties provide written informed consent by signing the AREA Transaction Brokerage Agreement (TBA) before any offer is presented or accepted.
  
  

Without both signed service agreements, Transaction Brokerage is not permitted.

The TBA supplements — it does not amend — the ESRA or EBRA.
It applies only to the specific property and transaction identified in that agreement.

🧭 If You Only Represent the Seller

When a buyer comes directly to you about your listing:

• You already represent the seller.
  
  

• The buyer is not yet represented.
  
  

At this stage, you cannot offer Transaction Brokerage.
You must first explain the buyer’s legal options under Alberta’s Designated Agency framework.

Option 1 – Customer Relationship
The buyer remains unrepresented.
You owe honesty, care, and disclosure but no advice or advocacy.
You continue to represent the seller only.

Option 2 – Transaction Brokerage
The buyer becomes a client of your brokerage, and both parties consent in writing to your neutral facilitation role through the TBA.
You act as a facilitator, not an advocate.

Option 3 – Separate Representation
The buyer is referred to another licensee (within or outside the brokerage).
You maintain full advocacy for your seller.

🧩 Your Role as a Transaction Facilitator

Once Transaction Brokerage begins, your fiduciary duties of loyalty and confidentiality end for both clients.
Your role is to remain neutral and even-handed throughout the transaction.

You must:

• Provide facts, market data, and standard forms only.

• Present all offers and counteroffers promptly.

• Disclose relevant information to both parties.

• Avoid any advice or discretion that benefits one side over the other.
  
  

You cannot:

• Suggest prices, terms, or negotiation strategies.

• Advocate for one side.

• Withhold material facts.
  
  

If neutrality becomes impossible or one party asks for confidential advice, you must:

• Disclose the conflict in writing, and

• Continue representing only one party (the one you originally have a service agreement with), treating the other as a customer or referring them elsewhere.
  
  

💡 Designated Agency Reminder

At Greater Calgary Real Estate, we operate under Designated Agency, meaning:

• Each associate represents their own client, not every client of the brokerage.

• Transaction Brokerage applies only when you personally represent both sides.

• If two different associates in the same brokerage represent the buyer and seller, each continues full agency representation — no Transaction Brokerage applies.
  
  

🏠 Co-Listings and Dual-Interest Transactions

• If your brokerage co-lists a property with another brokerage and your brokerage also represents a buyer for that same property, your brokerage is in a dual-interest situation under RECA Rule 59.1.

• You must obtain written consent through a Transaction Brokerage Agreement (TBA) for your side of the transaction.

• The other co-listing brokerage continues acting solely for the seller.

If both co-listing brokerages only represent the seller, no Transaction Brokerage applies — it remains a cooperative listing relationship.

🚫 Not Allowed Between Separate Brokerages

Transaction Brokerage cannot occur between two independent brokerages unless one of those brokerages is representing both sides (buyer and seller).
Each brokerage otherwise maintains its own client relationships and fiduciary duties.
When two brokerages are involved — each representing different clients — it’s a cooperative brokerage transaction, not Transaction Brokerage.

📝 Best Practice Checklist

• Confirm both clients have signed ESRA and EBRA.

• Explain the TBA clearly and obtain written consent before proceeding.

• Document all disclosures and communications in writing.

• Maintain strict neutrality — no advice or advocacy.

• Withdraw immediately if impartiality is compromised.

• Consult the Broker whenever there’s uncertainty.
  
  

⚠️ Risk Tip

Transaction Brokerage is lawful but high risk if misunderstood.
If either party expects advocacy, pricing advice, or negotiation guidance, Transaction Brokerage is not appropriate.
It’s safer to keep one as a customer or refer them to another licensee.

🗂 Reference Forms

• AREA Transaction Brokerage Agreement (TBA)

• AREA Exclusive Seller Representation Agreement (ESRA)

• AREA Exclusive Buyer Representation Agreement (EBRA)

• AREA Customer Status Acknowledgment Form

• RECA Consumer Relationships Guide