Humber/Ontario Real Estate Course 4 Exam Practice

What documentation must a brokerage use to handle multiple representation?

1. A consent form signed by either the buyer or seller.

2. A confirmation form without mandatory signatures.

3. Any standard form approved by the broker-in-charge.

4. Written consent from both the buyer and seller.

5. An oral agreement during the initial meeting.

6. Voluntary registration by either buyer or seller.

The correct answer is: Written consent from both the buyer and seller.

The requirement for a brokerage to handle multiple representation is grounded in the necessity for transparency and clarity in real estate transactions. Written consent from both the buyer and seller ensures that all parties involved fully understand and agree to the implications of representation by the same brokerage. This written consent serves to protect both the clients’ rights and the brokerage's obligations, ensuring that there is no conflict of interest and that both parties are informed of how their interests will be managed within the framework of the representation. Having both parties provide written consent also aligns with regulatory standards that govern real estate practices, emphasizing the importance of documented agreements in fostering trust and accountability in the transaction process. Additionally, it helps delineate the responsibilities of the brokerage in managing potential conflicts that may arise while representing multiple parties. Other options may not satisfy the legal and ethical requirements for multiple representation. For example, a consent form signed by only one party would not provide adequate protection for the other party's interests, and an oral agreement fails to offer any formal record of consent. Similarly, relying on a confirmation form without mandatory signatures lacks the necessary documentation to confirm understanding and acceptance of multiple representation. Voluntary registration from either party also doesn't encompass the dual consent needed to appropriately manage the complexities involved in such situations.