Humber/Ontario Real Estate Course 4 Exam Practice

What describes multiple representation in a brokerage for a property listed by one salesperson and offered by another salesperson in the same brokerage?

1. The brokerage is involved in multiple representation.

2. No multiple representation as one buyer is a client and the other a customer.

3. No multiple representation since the clients are in different branches.

4. No multiple representation if different salespersons handle the clients.

5. Multiple representation occurs only if buyers are clients.

6. Multiple representation involves different brokerages.

The correct answer is: The brokerage is involved in multiple representation.

The concept of multiple representation within a brokerage occurs when one salesperson lists a property, and another salesperson within the same brokerage represents a potential buyer of that property. This situation creates a scenario where the brokerage has a vested interest in both sides of the transaction, leading to a form of multiple representation. In this context, the brokerage is responsible for managing potential conflicts of interest that may arise from representing both the seller and buyer. The brokerage must ensure that both parties are treated fairly and equitably, adhering to applicable regulations and professional standards. The significance of this lies in the brokers' duty to maintain transparency and protect the confidentiality and negotiating positions of both the seller and buyer. While alternative options focus on the nature of the relationships (client vs. customer, different branches, etc.), the core fact remains that the brokerage's involvement in representing both parties constitutes multiple representation, regardless of the specific designations of the individuals or their relationships to the brokerage. Under Ontario real estate regulations, it is this dual representation within the same brokerage that "A" accurately describes.