Humber/Ontario Real Estate Course 3 Exam Practice

Under which circumstance is multiple representation permissible?

1. Is prohibited by law.

2. Occurs strictly in situations where a salesperson within a brokerage is representing both buyer and seller in a transaction.

3. Does not apply to situations where two salespersons representing the buyer and seller respectively are employed by the same brokerage but are located in different branch offices.

4. Is permissible if the informed written consent of all clients involved is obtained by the brokerage.

The correct answer is: Is permissible if the informed written consent of all clients involved is obtained by the brokerage.

The correct answer indicates that multiple representation is permissible when there is informed written consent from all clients involved. This principle aligns with the requirements for maintaining transparency and ensuring that all parties are aware of and agree to the arrangement. In real estate transactions, when a single brokerage represents both the buyer and the seller, it is essential to have clear communication and consent to manage any potential conflicts of interest that may arise. Obtaining informed written consent ensures that clients understand the implications of multiple representation, which often involves the brokerage acting in a dual capacity. This helps maintain trust and adherence to regulatory standards, providing legal protection for both clients and the brokerage itself. The reasoning behind this answer reflects the ethical practices expected in the real estate industry, ensuring that clients’ rights and interests are safeguarded. In essence, informed consent allows for transparency and aligns with professional standards, which is critical in fostering good client relationships and maintaining the integrity of the real estate profession.