Humber/Ontario Real Estate Course 2 Exam Practice

What occurs when a salesperson in one branch has a client making an offer on a property listed by another branch within the same brokerage, which also has a customer offer?

1. The employing brokerage is not involved in multiple representation, as one buyer is a client and the other buyer is a customer.

2. The brokerage is not involved with multiple representation, as the clients are represented by two different branches.

3. The brokerage is not involved with multiple representation, as the buyer client and seller client are represented by two different salespersons.

4. The employing brokerage is involved in multiple representation.

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

When a salesperson in one branch has a client making an offer on a property listed by another branch within the same brokerage, and that listing branch also has a customer offering, this situation involves multiple representation by the employing brokerage. Multiple representation occurs when a brokerage represents more than one party in the same transaction. In this case, the employing brokerage is involved in multiple representation because they are representing both the buyer client from one branch and the seller client from another branch, as well as the customer from the listing branch. This scenario raises potential conflicts of interest and requires careful management to ensure fairness and transparency for all parties involved.