Humber/Ontario Real Estate Course 3 Exam Practice

Salesperson Maynard is involved in a situation where his client and a customer from another branch of his brokerage are bidding on the same property. What is the brokerage's involvement?

1. The brokerage is involved in multiple representation.

2. The brokerage is not involved in multiple representation because one buyer is a client and the other is a customer.

3. The brokerage is not involved in multiple representation since the buyers are from different branches.

4. There is no multiple representation since each buyer is represented by a different salesperson.

5. Multiple representation does not apply as the buyer and seller are from different market segments.

6. The situation does not qualify for multiple representation due to the brokerage's protocols.

The correct answer is: The brokerage is involved in multiple representation.

In this scenario, the correct answer is A: The brokerage is involved in multiple representation. Multiple representation occurs when a brokerage represents more than one party in the same trade, which is the case here as Salesperson Maynard's client and the customer from another branch of the same brokerage are both bidding on the same property. This situation raises potential conflicts of interest and requires careful handling to ensure all parties are treated fairly. Options B, C, D, E, and F are not correct because they do not accurately describe the situation presented. In this case, it is clear that multiple representation is in play since both the client and the customer are represented by individuals from the same brokerage and are involved in the same transaction.