Humber/Ontario Real Estate Course 4 Exam Practice

If a buyer representation agreement states that both the listing salesperson and the selling salesperson work for the same brokerage and must act impartially, what does this refer to?

1. Conflict of interest provision

2. Standard representation agreement

3. Exclusive representation agreement

4. Multiple representation

5. Single representation

6. Dual commission arrangement

The correct answer is: Multiple representation

The situation described pertains to multiple representation. In real estate, this occurs when a brokerage represents both the buyer and the seller in a transaction. The key aspect of this arrangement is the requirement for both salespersons to act impartially to avoid any conflict of interest. This means that they must navigate the transaction while considering the best interests of both parties involved, maintaining fairness and transparency. Multiple representation is often mandated by regulatory frameworks to protect the interests of all clients involved, ensuring that no party feels disadvantaged due to the dual representation. It is essential for agents to communicate any potential conflicts and establish clear terms within the buyer representation agreement to foster trust and understanding among clients. In contrast, the other options like exclusive representation or single representation typically refer to cases where an agent represents only one party, thus eliminating the need for impartiality in the same way. Conflict of interest provisions are generally broader and apply in various business contexts, while dual commission arrangements specifically refer to financial arrangements rather than the representation structure.