Toronto Real Estate Agent Dispute and Litigation Lawyers
Real Estate Broker & Mortgage Broker Claims and Litigation
Business Broker Claims | M&A Advisor Claims

Real Estate Agent, Mortgage Broker, Business Broker and M&A Advisor Negligence Lawyers
Toronto Broker Commission Claim Lawyers

When engaging a real estate agent or mortgage broker, it is important to understand the duties which brokers and agents have in the representation of their principal, including the standard of care and skill required by law.

At Gilbertson Davis LLP, our lawyers can advise, represent and act for agents, individuals, brokers and brokerages to bring or defend negligence claims against real estate brokers and agents.

Duties of a Real Estate Agent, Mortgage Broker, Business Broker and M&A Advisors

In Ontario, buyers and sellers of residential and commercial real estate and businesses rely on brokers and agents to advise, assist and facilitate their transactions.

Nature of Duties

Brokers and agents owe duties to their principal, including the duty to perform what the agent has undertaken to perform by the contract establishing the agency; a duty to follow and obey the principal’s instructions; a duty to personally perform that which the agent undertook to perform and not delegate performance to others, with certain exceptions; a duty to account to the principal; and a duty to perform with care and skill that which the agent has undertaken to perform.

Fiduciary Duty

The courts have sometimes held that agents and brokers are fiduciaries and owe to the principal a duty to act in good faith and solely for the benefit for their principals.

Duty of Care

In representing their clients, brokers and agents owe a duty of care, including an obligation to exercise their role to the standard of a reasonably careful broker or agent in the same circumstances.

What constitutes reasonable care will differ from situation to situation, but generally brokers and agents will be expected to adhere to standard industry practices and customs, contractual terms, as well as statutory and regulatory requirements.

Joint Representation

Real estate agents have further obligations when they represent both the buyer and the seller to a transaction, including an obligation not to favour the interests of one party over the other, and to equally disclose relevant facts about the property or comparable properties to both parties.

In some circumstances, such as where there are material or major defects, an agent may even owe duties to voluntarily disclose the defects to the other party to the transaction.

Broker and Agent Liability

Where agents fail to meet these standards, they may be liable for any damages the principal sustains, including difference in price from fair market value, or the costs of repairs that the agent knew or ought to have known about but did not disclose to their client, the commissions paid to the agent, or in some situations the entire purchase price of the property.

Why Gilbertson Davis LLP

We regularly advise and represent agents, brokers, sellers, buyers and other affected by the sale of land, on urgent equitable remedies and the law of damages. Our lawyers have experience in trials and appeals, and important and complex motions, including for injunctions and summary judgment.

Please contact Gilbertson Davis LLP to arrange an initial consultation.

Our Lawyers


John L. Davis

Managing Partner
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David Alderson

Counsel – Commercial Litigation
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Robert Kalanda

Associate
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Bianca Thomas

Associate
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R. Lee Akazaki

Partner
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Andrew Ottaway

Associate
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Nick P. Poon

Associate
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