Humber/Ontario Real Estate Course 4 Exam Practice

What is the best description for multiple representation in a real estate transaction?

1. Two clients represented by the same real estate salesperson

2. Two or more customers represented by a real estate brokerage

3. Two or more clients represented by the same real estate brokerage

4. A dual agency agreement with two real estate firms

5. Two agents representing different sides in a transaction

6. Brokerage representing different customers in unrelated properties

The correct answer is: Two or more clients represented by the same real estate brokerage

The best description for multiple representation in a real estate transaction is when two or more clients are represented by the same real estate brokerage. This situation typically arises when a brokerage has multiple clients with conflicting interests, such as a buyer looking at a property listed by the same brokerage representing the seller. In this context, the brokerage must manage the interests of both clients while ensuring that neither client's confidential information is disclosed to the other. This arrangement is often governed by specific regulations and ethical guidelines to maintain transparency and fairness throughout the transaction process. The effective handling of multiple representation requires careful communication, clear disclosures, and often a signed consent form from all parties involved to acknowledge the brokerage’s dual role. Understanding this concept is crucial for real estate professionals, as it highlights the importance of ethical practices and the complexities of client representation in the industry. The other options do not accurately capture the nuances of multiple representation as they either involve scenarios with customers instead of clients, reference dual agency agreements improperly, or discuss unrelated property transactions.