Humber/Ontario Real Estate Course 3 Exam Practice

What is implied when Salesperson Ryan assures Buyer Tiana that the seller's financial difficulties may benefit her negotiation for purchasing a home?

1. He is potentially setting up an implied multiple representation.

2. He is simply fulfilling his requirement to provide top-notch service and this does not influence Tiana’s status.

3. He is not implicating multiple representation as the seller is his sole client irrespective of his statements.

4. There is no implied or resulting client relationship with Tiana as no representation agreement has been signed.

5. He might be violating a provision that mandates neutrality in representing buyers and sellers simultaneously.

6. He is transparent and clear in highlighting advantageous information which is part of his duty.

The correct answer is: He is potentially setting up an implied multiple representation.

Salesperson Ryan's assurance to Buyer Tiana regarding the seller's financial difficulties suggests that there could be a conflict of interest, especially if he is representing both the buyer and the seller. This scenario hints at an implied multiple representation situation. In real estate, multiple representation occurs when a salesperson represents both the buyer and the seller in a transaction, which can lead to a potential conflict of interest. When Ryan mentions that the seller's financial difficulties may benefit Tiana during negotiations, it implies that Ryan possesses insider information that could sway negotiations in favor of the buyer. This situation can create a perception that the interests of Buyer Tiana might be prioritized over those of the seller, especially if Ryan is acting for both parties without proper disclosure and consent. In many jurisdictions, real estate professionals are required to disclose any potential conflicts and obtain the consent of both parties if they intend to represent more than one client in a transaction. Thus, Ryan's statement, which appears to give Tiana an advantage, inadvertently indicates that he may be straddling the boundaries of multiple representation. In this context, the other options do not fully capture the implications of Ryan's statement. The choice implying that he is simply providing service overlooks the significant risk of conflict, while the suggestion that he