Humber/Ontario Real Estate Course 4 Exam Practice

What does multiple representation mean in the context of real estate transactions?

1. When a brokerage represents two or more clients at the same time

2. When two brokerages agree to share commissions on a transaction

3. When a brokerage sells multiple properties to the same client

4. When one agent is responsible for selling and buying properties simultaneously

5. When brokerages share their client lists with one another

6. When an agent represents both buyers and tenants

The correct answer is: When a brokerage represents two or more clients at the same time

Multiple representation in real estate transactions specifically refers to a situation where a brokerage represents two or more clients in the same transaction simultaneously. This means that a single brokerage may represent both the buyer and the seller, which can create a conflict of interest and requires specific disclosure and consent from the parties involved. This practice is governed by regulations to ensure that all parties are aware of the dual role that the brokerage is playing, and it helps maintain transparency throughout the transaction. The brokerage must be clear about its responsibilities and ensure that the interests of both clients are managed fairly and ethically. The other options provided do not accurately define multiple representation. For instance, sharing commissions or client lists involves separate brokerages and practices that do not entail representing multiple parties in a single transaction. Similarly, selling multiple properties to the same client or an agent managing simultaneous transactions does not capture the essence of multiple representation, as it does not involve the dual representation aspect within the same transaction framework.