Humber/Ontario Real Estate Course 3 Exam Practice

A brokerage deals with more than one branch in a transaction involving representatives from two different branches. This scenario means:

1. The brokerage is not engaged in multiple representation

2. The brokerage is engaged in multiple representation

3. No conflict of interest for the brokerage is present

4. The brokerage is solely represented if both agents work in the headquarters

5. There is a need for agency disclosure due to internal representation

6. Brokerage may imply conflict only if cross-branch policies aren’t aligned

The correct answer is: The brokerage is engaged in multiple representation

The situation described indicates that the brokerage is engaged in multiple representation. When a brokerage has representatives from different branches involved in the same transaction, it is acting on behalf of multiple clients or parties within that transaction. This is considered multiple representation, as the brokerage represents both the buyer and the seller through its different branches. In real estate practice, multiple representation occurs when one brokerage represents multiple clients in the same transaction. It can lead to various complexities, such as managing different interests and ensuring that all parties are treated fairly, without compromising confidentiality. The key aspect here is the involvement of representatives from different branches of the same brokerage, which substantiates that the brokerage is indeed engaged in multiple representation. Understanding this concept is essential for adhering to ethical guidelines and ensuring proper communication about potential conflicts of interest to all parties involved in the transaction.