Humber/Ontario Real Estate Course 4 Exam Practice

What is required by the REBBA regarding property disclosures and multiple representation situations?

1. Two disclosures, one before agreement signing and another before presenting offers.

2. A single disclosure when listing the property.

3. No written consent is needed if proper disclosures are given.

4. Disclosures are mandatory only for clients, not customers.

5. Notification only at the consummation of transaction.

6. Disclosures are not mandatory under specific circumstances.

The correct answer is: Two disclosures, one before agreement signing and another before presenting offers.

The requirement by the Real Estate and Business Brokers Act (REBBA) pertains to the necessity of clear and timely disclosures in situations of multiple representation. In these scenarios, it is crucial to maintain transparency and ensure that all parties involved are fully aware of the relationships and interests at play. A correct option indicates that multiple disclosures are required: one before the signing of any agreement and another immediately before offers are presented. This ensures that the client understands the potential conflicts of interest that may arise due to the broker’s representation of more than one party in the same transaction. This approach helps protect the interests of all parties and upholds the ethical standards within the real estate profession, fostering trust and transparency. Other options lack the same level of comprehensiveness needed for maintaining ethical standards in real estate practice. For instance, simply having one disclosure at the time of listing may fail to address the evolving nature of the relationship and potential conflicts that can arise later in the transaction process. Similarly, the suggestion that no written consent is needed if proper disclosures are provided undermines the importance of obtaining explicit agreement from clients regarding their understanding of the situation. The focus on disclosures solely for clients—not customers—would be inadequate in ensuring complete transparency, as customers also deserve to be informed properly.