Humber/Ontario Real Estate Course 4 Exam Practice

What disclosure is required under REBBA when a buyer who signed a customer service agreement wants to make an offer on a property listed by the same brokerage?

1. The brokerage must obtain written permission from the seller to provide customer service to the buyer before the offer is signed.

2. The brokerage must obtain written acknowledgment from both seller and buyer that the brokerage is working under a multiple representation arrangement before the offer is presented.

3. The brokerage must have written disclosure of their relationship with both the seller client and the buyer customer before the offer is presented.

4. The brokerage is required to obtain written acknowledgment that it is providing customer service to both the seller and the buyer before an offer is signed.

5. The brokerage can present the offer without any additional disclosures.

6. The brokerage must ensure an independent agent handles the deal.

The correct answer is: The brokerage must have written disclosure of their relationship with both the seller client and the buyer customer before the offer is presented.

The requirement under the Real Estate and Business Brokers Act (REBBA) focuses on ensuring that all parties are fully aware of the representation relationships involved in a transaction. When a buyer who has signed a customer service agreement wishes to make an offer on a property listed by the same brokerage, the brokerage must provide clarity regarding its role and its relationship with both the seller and the buyer. Having written disclosure of the relationship with both the seller client and the buyer customer is crucial in this situation. This transparency is key to avoiding conflicts of interest that may arise from representing both parties. It ensures that all parties understand how the brokerage is acting — whether as an agent for the seller or as a customer service provider for the buyer. This is important for maintaining trust in the real estate process and for complying with REBBA regulations. The other options focus on various aspects of the transaction, such as obtaining permission or acknowledgment from the parties involved, which may address relevant points but do not encapsulate the comprehensive nature of the required written disclosure regarding the relationship dynamics under REBBA. Hence, the correct answer highlights the necessity of informing all parties about the brokerage's roles to uphold regulatory standards and ensure ethical practices in real estate transactions.