Humber/Ontario Real Estate Course 3 Exam Practice

In what case does an agent achieve implied multiple representation?

1. When they provide advice beneficial only to buyer parties.

2. When acting in dual capacities within REBBA's ethical framework.

3. When the agent does not fully disclose terms related to both parties in the transaction.

4. Merely when signboards of interest are showcased improperly.

5. By affirming negotiation strategies benefiting one party over the seller.

6. By ensuring competence and honesty in dealings with all parties equally.

The correct answer is: By affirming negotiation strategies benefiting one party over the seller.

The correct situation for an agent to achieve implied multiple representation occurs when the agent engages in behavior that benefits one party’s negotiation strategies over another’s without proper disclosure. This typically creates a conflict of interest, where the agent is attempting to represent both the buyer and seller, but is not acting transparently or ethically towards both, which is crucial in real estate transactions. Such actions can lead to perceived favoritism, undermining trust and violating ethical obligations that require fair representation. In contrast, effective practices in real estate, such as ensuring competence and honesty in dealings with all parties, would illustrate an agent operating within ethical standards rather than implying multiple representation. Similarly, acting in dual capacities should still adhere to these ethical principles and require proper disclosure to avoid any conflict of interest. Proper representation necessitates that the agent does not selectively share or withhold important information that pertains to both parties involved in a transaction. Thus, agents must navigate their roles with transparency to maintain ethical conduct while representing multiple clients.