Humber/Ontario Real Estate Course 3 Exam Practice

When a brokerage signs an agreement with a seller, it establishes multiple representation. This scenario occurs when a brokerage represents both the seller and a potential buyer in the same transaction. In this arrangement, the brokerage has a legal and ethical obligation to treat all parties fairly and transparently, ensuring that all clients are informed of the situation and that their interests are protected.

Multiple representation is particularly relevant in real estate transactions, as it signifies the brokerage's capacity to facilitate and negotiate between both the seller and the buyer while adhering to the obligations of full disclosure and confidentiality. This is crucial because it allows the brokerage to maximize resources and expertise while managing the nuances of representing multiple clients simultaneously.

The other options highlight different types of representation that do not apply to this scenario. For instance, single representation would imply that the brokerage represents only one party in the transaction, while dual agency would involve two different agents within the same brokerage representing the buyer and the seller separately. Cooperative representation refers to a situation where different brokerages represent the different parties, and general agency pertains to a broader authority granted to act on behalf of a client in various matters, which does not specifically relate to the signing of an agreement with a seller. No representation would indicate a lack of any formal agreement or obligation between