Humber/Ontario Real Estate Course 4 Exam Practice

When should Salesperson Smith inform a seller about the possibility of multiple representation?

1. After the listing agreement is signed but before marketing the property.

2. Before another broker shows the property to a buyer.

3. Prior to the seller signing an agreement of purchase and sale.

4. Before asking the seller to sign the listing agreement.

5. After discussing the listing price with the seller.

6. At the first meeting with the seller.

The correct answer is: Before asking the seller to sign the listing agreement.

Salesperson Smith should inform the seller about the possibility of multiple representation before asking them to sign the listing agreement. This is because the possibility of multiple representation should be disclosed to the seller before any agreements are made or actions are taken. Option A, C, and F are all too late in the process and could potentially be a breach of ethical standards or state laws. Option B is also incorrect because it is not the responsibility of Salesperson Smith to inform other brokers about multiple representation, it is the seller's responsibility. Option E is also incorrect because the conversation about the listing price should not take priority over informing the seller about potential conflicts of interest.