Humber/Ontario Real Estate Course 4 Exam Practice

According to REBBA, when should a salesperson discuss the potential for multiple representation with a buyer client?

1. Before drafting an offer for the client.

2. Before entering a buyer representation agreement.

3. Immediately after signing the buyer representation agreement.

4. Prior to presenting the buyer's offer to the seller.

5. During the first property viewing with the client.

6. Before the client expresses interest in an offer.

The correct answer is: Before entering a buyer representation agreement.

The appropriate time for a salesperson to discuss the potential for multiple representation with a buyer client is before entering a buyer representation agreement. This is because the representation agreement outlines the professional relationship between the salesperson and the client, and it is crucial for clients to understand all implications, including the possibility of multiple representation, prior to committing to that agreement. Several factors make this timing significant. First, it ensures that clients are fully informed about how their interests will be managed in scenarios where the listing agent might also represent the seller. Understanding this concept can impact the client's decision to proceed with the representation agreement and can also affect their comfort in navigating potential conflicts of interest. Discussing multiple representation at this stage gives the buyer the opportunity to ask questions, express concerns, and make an informed decision about their representation. This proactive communication helps establish trust and clarity between the salesperson and the client, which are essential components of a successful working relationship.