Humber/Ontario Real Estate Course 3 Exam Practice

Which situation is considered a multiple representation in real estate?

1. Any transaction involving more than one agent

2. Both clients are buyers

3. Two salespeople representing different clients from the same brokerage

4. One brokerage representing two buyers in a single transaction

5. Brokerage representing a buyer and a seller

6. Different brokerages representing opposing clients

The correct answer is: Any transaction involving more than one agent

In the context of real estate, multiple representation specifically involves a situation where one brokerage has a fiduciary responsibility to both sides of a transaction. This means that the brokerage is acting on behalf of multiple parties, which could potentially create conflicts of interest, as the fiduciary duties to each client may not align perfectly. The correct scenario illustrates this concept clearly, as it shows a brokerage representing two different clients who are involved in the same transaction. This situation is critical because it raises concerns about how the brokerage can effectively represent both parties without compromising the interests of each. The other options, while they touch on various aspects of real estate dealings, do not capture the essence of multiple representation properly. For instance, having different agents working with clients from separate brokerages or both clients being buyers does not imply that a single brokerage is managing the interests of multiple parties simultaneously. Multiple representation arises primarily within the same brokerage where the fiduciary responsibilities might become tangled, making option D the correct representation of multiple representation within a single transaction.