Humber/Ontario Real Estate Course 2 Exam Practice

When representing a buyer in another branch, what situation involves a brokerage in multiple representation?

1. No conflict of interest exists for the brokerage.

2. The brokerage is involved in multiple representation.

3. The brokerage would be involved in multiple representation only if both salespersons were working in the same branch office.

4. The brokerage is not involved in multiple representation.

5. No multiple representation scenario applies in this case.

6. The seller holds sole responsibility in this case.

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

In the scenario described, the situation that involves a brokerage in multiple representation is when representing a buyer in another branch. Multiple representation occurs when a brokerage represents more than one party in a real estate transaction, such as both the buyer and seller or multiple buyers. In this case, because the buyer is being represented by one branch of the brokerage while the seller is represented by another branch of the same brokerage, it falls under the category of multiple representation. Option A is incorrect because multiple representation does create a conflict of interest that the brokerage must navigate carefully. Option C is incorrect as it erroneously specifies that both salespersons must be in the same branch office for multiple representation to apply, which is not the case. Option D is incorrect because in this scenario, the brokerage is indeed involved in multiple representation. Option E is incorrect as the situation described does involve a multiple representation scenario. Option F is incorrect as it shifts the responsibility solely to the seller, neglecting the complexities involved in representing both buyer and seller in a transaction.