In a real estate brokerage, what is the effect of an arrangement where an associate broker in a real-estate brokerage who recommended a builder for a client’s home?

Ontario, Canada


The following excerpt is from Powell v. Lojko et al., 2017 ONSC 2867 (CanLII):

In Hamilton v. Osborne[6] the plaintiff, herself an associate broker in a real estate brokerage agreed to an arrangement where a builder was to buy a particular property and build a home to her specifications which she would then purchase. The builder was unable to come up with the funds necessary to purchase the lot. Rather than walk away the plaintiff sought a new deal. She would buy the property and the builder would construct the home. More problems ensued. It was important to the plaintiff that the home include a separate apartment with its own walk-out. This turned out to be far more difficult and expensive than expected. Ultimately, the plaintiff retained another builder who constructed a home that did not have all the features she desired. She sued the first builder and her colleague at the brokerage who had listed the property and recommended that builder.

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