Humber/Ontario Real Estate Course 2 Exam Practice

What should a brokerage do to prevent undisclosed conflicts of interest in property transactions?

1. Ensure all agents are aware of potential conflicts.

2. Require disclosure forms to be filled out in every transaction.

3. Implement regular training on conflict of interest policies.

4. Conduct sporadic audits on completed transactions.

5. Adopt a no-conflict policy for all property transactions.

6. Set up an internal review board for conflict resolution.

The correct answer is: Require disclosure forms to be filled out in every transaction.

In order to prevent undisclosed conflicts of interest in property transactions, it is crucial for a brokerage to require disclosure forms to be filled out in every transaction. This approach ensures that all parties involved in the transaction are aware of any potential conflicts of interest that may arise. By having these disclosure forms filled out, the brokerage can promote transparency and protect the best interests of all parties involved in the transaction. While options A, C, D, E, and F may also contribute to promoting ethical conduct and preventing conflicts of interest, requiring disclosure forms to be filled out in every transaction is the most direct and effective way to ensure that any potential conflicts are disclosed and addressed appropriately.