Humber/Ontario Real Estate Course 4 Exam Practice

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What is a key consideration in multiple representation situations?

  1. Has inherent risks due to conflicting interests of buyer and seller.

  2. Is legally uncomplicated.

  3. Eliminates competition in buyer-seller negotiations.

  4. Involves only the same salesperson working with both buyer and seller clients in the same transaction.

  5. Requires a conflict of interest disclosure to be signed by both parties.

  6. Is not allowed under REBBA guidelines.

The correct answer is: Has inherent risks due to conflicting interests of buyer and seller.

In multiple representation situations, a key consideration is the inherent risks due to conflicting interests of the buyer and seller. When a real estate agent represents both the buyer and the seller in the same transaction, there is a potential for conflicts of interest to arise. The agent must navigate these conflicts carefully to ensure fair and ethical treatment for both parties. This complexity highlights why choice A is the correct answer. Options B, C, D, E, and F are not key considerations in multiple representation situations. Option B is incorrect because multiple representation is not legally uncomplicated due to the potential for conflicts of interest. Option C is incorrect because multiple representation does not eliminate competition in buyer-seller negotiations. Option D is incorrect because multiple representation can involve multiple agents from the same brokerage, not just the same salesperson. Option E is incorrect because while a conflict of interest disclosure may be required, it is not the most critical consideration. Option F is incorrect because multiple representation is allowed under REBBA guidelines, but with proper disclosure and procedures in place to manage conflicts of interest.

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