Humber/Ontario Real Estate Course 4 Exam Practice

In a situation where Salesperson Allen represents a buyer and Salesperson Danaldi represents a seller within the same brokerage, what steps must be taken if the buyer is interested in the seller's property?

1. This multiple representation situation must be openly disclosed as soon as is feasibly possible and written consent obtained prior to an offer being presented.

2. The brokerage must obtain the verbal consent of both parties to the multiple representation.

3. The brokerage must work with either the buyer or seller client, terminate the other client relationship and refer that client to another brokerage.

4. No conflict of interest exists provided that the two salesperson's do not discuss anything about their respective clients to each other, or anyone else in the brokerage.

5. Only the seller's consent is required in this situation to proceed with the sale.

6. Salesperson Danaldi must refer the seller to another salesperson within the brokerage to avoid conflict.

The correct answer is: This multiple representation situation must be openly disclosed as soon as is feasibly possible and written consent obtained prior to an offer being presented.

In a situation where one salesperson represents a buyer and another represents a seller within the same brokerage, it is essential to manage the potential conflict of interest that arises from such multiple representation. The correct course of action is to openly disclose this multiple representation as soon as is feasibly possible, and to obtain written consent from both the buyer and the seller prior to presenting an offer. This approach aligns with the ethical obligations and regulatory requirements to ensure transparency in real estate transactions. Open disclosure helps maintain trust between all parties involved and ensures that both the buyer and seller understand the implications of the brokerage representing both interests. Written consent protects the brokerage and the salespersons by documenting that both clients acknowledge the multiple representation and agree to proceed under those circumstances. Other options do not align with the best practices or legal requirements for handling multiple representation. Simply obtaining verbal consent could lead to misunderstandings and lacks the documentation necessary to protect all parties. Working with only one client and terminating the other relationship conflicts with the principle of providing equal representation to both clients. Assuming there is no conflict of interest simply by isolating communications is unrealistic and does not comply with real estate regulations. Either the consent of just the seller or the referral of the seller to another salesperson within the brokerage fails to address