Humber/Ontario Real Estate Course 3 Exam Practice

When must Salesperson Gadhi inform the seller about possible multiple representation?

1. After signing the listing agreement, but before posting a 'for sale' sign

2. Before any other salesperson shows the property to a potential buyer

3. Before the seller signs the agreement of purchase and sale

4. Before asking the seller to sign the listing agreement

5. After showing the property to potential buyers

6. After an offer has been made

The correct answer is: Before asking the seller to sign the listing agreement

The correct answer is that Salesperson Gadhi must inform the seller about possible multiple representation before asking the seller to sign the listing agreement. This is crucial because it ensures that the seller is aware of the implications of multiple representation, including potential conflicts of interest and the requirement for the salesperson to manage these conflicts appropriately. Informing the seller before the listing agreement is signed allows them to make an informed decision about whether they want to proceed under such conditions. This aligns with the principles of transparency and informed consent in real estate transactions. By disclosing this information at this stage, Gadhi upholds their professional responsibilities and helps the seller understand how their representation might intersect with other parties. This proactive approach is essential in establishing trust and clarity in the client-agent relationship right from the outset, allowing the seller to weigh their options with full awareness of the potential representation scenario.