Humber/Ontario Real Estate Course 3 Exam Practice

In the scenario where two salespersons within a brokerage work with clients negotiating to buy the same property listed by that brokerage, how is this situation classified under REBBA?

1. The seller client is not part of the multiple representation.

2. Competing buyer clients are not involved in the same transaction, hence it is not multiple representation.

3. This situation is considered multiple representation.

4. The brokerage must inform the buyers about each other before showing the property.

5. The buyers must sign an agreement to proceed with the negotiation.

6. The brokerage must assign different agents for each buyer.

The correct answer is: This situation is considered multiple representation.

The situation described is classified as multiple representation under the Real Estate and Business Brokers Act (REBBA) because two salespersons from the same brokerage are representing different clients who are both interested in purchasing the same property. Multiple representation occurs when a brokerage has a representation agreement with more than one client in the same transaction or property, which can create a conflict of interest. In this scenario, both buyers are competing for the same property listed by their common brokerage, making it essential for the brokerage to navigate the interests of both clients carefully. Proper disclosure and consent processes are necessary to ensure that both buyers are aware of the situation, and they must understand the implications of working within a multiple representation framework. The other options do not correctly capture the essence of the scenario as they either misunderstand the structure of multiple representation or oversimplify the requirements for the brokerage. For instance, stating that the buyers are not involved in the same transaction or that one party does not need to be informed fails to recognize the complexity and the necessity of managing the situation according to REBBA guidelines.