Humber/Ontario Real Estate Course 3 Exam Practice

When ABC Realty Inc. represents both buyer and seller from different branches, what must occur?

1. Written consent to multiple representation from both parties

2. Use a confirmation form without requiring signatures

3. Single representation by separate branch offices

4. Meeting minimum REBBA requirements by disclosing multiple representation

5. Brokerage may proceed without further action

6. Brokerage can handle it privately

The correct answer is: Written consent to multiple representation from both parties

The correct answer is that written consent to multiple representation from both parties is required. This requirement ensures that both the buyer and seller are fully informed about the arrangement and have agreed to the brokerage's representation of both sides in the transaction. By obtaining written consent, the brokerage is acting transparently and in compliance with regulations that govern real estate practices, protecting the interests of both parties involved. In scenarios where a brokerage represents both a buyer and a seller, it is crucial to maintain a clear line of communication and trust. Written consent helps to clarify the roles and responsibilities of the brokerage, ensuring that both parties understand the implications of the multiple representation. It mitigates any potential conflicts of interest, as both parties are aware that they are being represented by the same brokerage entity. Other options, such as using a confirmation form without requiring signatures or proceeding without further action, do not adequately address the necessity for informed consent in a multiple representation scenario. Those alternatives may not provide the necessary legal safeguards and transparency mandated by real estate regulations. Thus, the requirement of obtaining written consent stands out as the correct and responsible course of action in this situation.