Humber/Ontario Real Estate Course 3 Exam Practice

When a buyer client working with a different salesperson in the same brokerage shows interest in a seller's property listed by Stewart, what does the brokerage need to do according to REBBA?

1. Inform both parties about the multiple representation when the offer is presented

2. Obtain verbal consent from both parties before presenting the offer

3. Obtain written consent from both parties as soon as possible before any offer

4. Inform the buyers about multiple representation at the earliest practicable point

5. Only inform the seller regarding the multiple representation

6. Include the potential for multiple representation in the offer document

The correct answer is: Obtain written consent from both parties as soon as possible before any offer

The correct approach involves obtaining written consent from both parties as soon as possible before any offer is made. This is crucial under the Real Estate and Business Brokers Act (REBBA) as it aims to ensure transparency and informed consent in situations of multiple representation. When a buyer, represented by one salesperson within a brokerage, expresses interest in a property listed by another salesperson from the same brokerage, the brokerage is faced with a multiple representation scenario. This situation requires that all parties involved fully understand the implications of the representation they are entering into, thereby protecting their rights and interests. Getting written consent ensures that there is a clear, documented agreement among all parties involved, minimizing misunderstandings and fostering trust. Additionally, it aligns with the ethical obligations that brokerages have under REBBA to act honestly, fairly, and transparently. This not only facilitates a smoother transaction process but also helps in mitigating potential conflicts of interest inherent in multiple representation situations. Other options do reflect important considerations, such as timely communication or informing parties about multiple representation, but they do not emphasize the necessity of obtaining written consent as strongly as the selected answer. Therefore, the requirement for written consent is a key component of ensuring compliance within the regulatory framework.