Humber/Ontario Real Estate Course 4 Exam Practice

Under what circumstances must ABC Realty Inc. obtain written consent for multiple representation?

1. When both branches of ABC Realty Inc. are involved in the transaction.

2. When using confirmation forms for documentation but not requiring signatures from involved parties.

3. Using single representation for buyers and sellers at separate offices.

4. Disclosing the possibility of multiple representation to meet minimal REBBA requirements.

5. When different salespersons from the same branch are involved.

6. If the transaction does not require consent due to branch separation.

The correct answer is: When both branches of ABC Realty Inc. are involved in the transaction.

Written consent for multiple representation is required when both branches of ABC Realty Inc. are involved in a transaction. This situation is significant because multiple representation occurs when a brokerage represents more than one party in a transaction, which raises potential conflicts of interest and obligations to each party. By obtaining written consent, the brokerage ensures that all parties are aware of the situation and have agreed to it, thereby protecting the interests of both the buyers and sellers involved and maintaining the integrity of the real estate transaction. The other contexts presented do not necessarily require written consent. For example, using confirmation forms without requiring signatures does not establish a binding agreement to proceed with multiple representation. Similarly, representing buyers and sellers from separate offices doesn’t automatically imply that consent is needed if those offices function independently regarding the transaction. Minimal disclosure to meet REBBA requirements does not equate to active representation, and the involvement of different salespersons from the same branch can fall under the same branch agreement, which typically does not require additional consent under the same company policy. Lastly, if a transaction does not necessitate consent because of clear branch separation, there’s no requirement to obtain written approval. In essence, the need for written consent stems from the involvement of multiple branches, where clear communication and agreement are