Humber/Ontario Real Estate Course 4 Exam Practice

When representing multiple buyers for the same property, a brokerage must:

1. Disclose the multiple representation to all parties

2. Ensure each buyer has an exclusive agent

3. Conduct a blind bidding process

4. Only work with the highest bidder

5. Assign separate branches to each buyer

6. Terminate one of the buyer agreements

The correct answer is: Disclose the multiple representation to all parties

When representing multiple buyers for the same property, the brokerage is required to disclose the multiple representation to all parties involved. This obligation stems from the principle of transparency and the duty to avoid conflicts of interest. The brokerage must ensure that all buyers are aware that they are competing for the same property, which allows them to make informed decisions regarding their offers and expectations. Disclosing multiple representation is also critical to maintaining ethical standards within the industry, as it safeguards the interests of all parties involved and fosters trust. Buyers have a right to know that their agent is also representing other potential buyers, which could potentially influence negotiations and bidding strategies. Without this disclosure, the brokerage risks breaching their fiduciary duty, which could lead to legal repercussions and damage to their reputation. Other options such as ensuring each buyer has an exclusive agent or conducting a blind bidding process do not address the core requirement of disclosure. Assigning separate branches, only working with the highest bidder, or terminating one of the buyer agreements implies actions that are not standard practices or reflective of the ethical considerations inherent in real estate transactions.