Humber/Ontario Real Estate Course 2 Exam Practice

In a multiple representation involving a buyer client and a seller client, the brokerage:

1. Must ensure all parties sign a confidentiality agreement

2. Owes fiduciary duties to both buyer and seller clients, including all salespersons within that brokerage

3. Need only be concerned that the clients give their verbal consent to this arrangement

4. Needs to maintain full duty of care, with no limitations, to both the buyer client and the seller client

5. Should focus on securing the highest price for the seller

6. Does not need to obtain any form of consent

The correct answer is: Owes fiduciary duties to both buyer and seller clients, including all salespersons within that brokerage

In a multiple representation scenario involving a buyer client and a seller client, the brokerage owes fiduciary duties to both parties, including all salespersons within that brokerage. This means that the brokerage has a legal obligation to act in the best interests of both the buyer and the seller, ensuring fairness, honesty, and full disclosure in all transactions and communications. Option A is incorrect because while confidentiality is crucial in real estate transactions, signing a confidentiality agreement is not a mandatory requirement in a multiple representation situation. Option C is incorrect as verbal consent is not sufficient in this complex situation; written consent from both parties is necessary to ensure transparency and protection for all involved. Option D is incorrect as the duty of care to both the buyer and seller clients does exist, but there may be limitations based on the specific circumstances of the transaction. Option E is incorrect as the brokerage needs to act impartially and in the best interest of both parties, rather than focusing solely on securing the highest price for the seller. Option F is incorrect as obtaining consent from both the buyer and seller clients is essential in a multiple representation scenario to ensure transparency and avoid conflicts of interest.