Humber/Ontario Real Estate Course 4 Exam Practice

In a scenario where a property listed by Seller Chadra is sold, involving two branches of the same brokerage, what is the correct interpretation?

1. No conflict of interest for the brokerage

2. Multiple representation for the brokerage

3. Not involved in multiple representation

4. Multiple representation only if in the same branch

The correct answer is: Multiple representation for the brokerage

In the given scenario, when a property listed by Seller Chadra is sold through two branches of the same brokerage, the correct interpretation involves understanding the concept of multiple representation within the brokerage context. Multiple representation occurs when the same brokerage represents both the seller and the buyer in a transaction. Since both branches are part of the same brokerage, they operate under the same corporate umbrella, which means that even though they are separate branches, the brokerage is acting on behalf of both parties in this transaction. Therefore, there is a potential conflict of interest that needs to be managed, as the brokerage must ensure both parties' interests are represented fairly and transparently. This situation underlines the importance of proper disclosures and consent in real estate transactions to navigate the complexities of dual agency. The brokerage must inform both the seller and buyer of its role and obtain their agreement to proceed under multiple representation conditions. This interpretation highlights the necessity for clear communication and adherence to legal obligations when a single brokerage represents both sides of a deal, thereby affirming why this is identified as multiple representation for the brokerage involved.