Humber/Ontario Real Estate Course 4 Exam Practice

In multiple representation involving a buyer and seller client, the brokerage must:

1. Secure verbal consent from both clients

2. Obtain informed consent in writing before agreement

3. Focus solely on the seller's best interest

4. Notify RECO immediately

5. Ensure all fiduciary duties are fully applied

6. Adhere strictly to previously set commission terms

The correct answer is: Obtain informed consent in writing before agreement

In situations involving multiple representations, such as when a brokerage represents both a buyer and a seller, it is essential to obtain informed consent in writing from both clients before proceeding with any agreements. This requirement ensures that both parties are fully aware of the implications of the brokerage representing their interests and that they understand any potential conflicts that might arise. Written consent is crucial because it protects the rights of both the buyer and the seller, ensuring transparency in the relationship. It also acts as a safeguard for the brokerage, providing documented proof that both clients have agreed to the arrangement, thereby upholding ethical standards and compliance with regulatory guidelines. This is particularly important in real estate transactions, where the interests of the parties may not always align. Other options, while relevant to the context of real estate practice, do not specifically address the legal requirement of informed consent in writing before the agreement is made. For instance, verbal consent does not provide the same level of protection or clarity as written consent, and focusing solely on the seller’s interest disregards the balanced approach necessary in multiple representation scenarios. Thus, obtaining informed consent in writing is the correct course of action in such cases.