Humber/Ontario Real Estate Course 3 Exam Practice

When should a buyer be informed of the potential for multiple representation?

1. Before preparing an offer.

2. Prior to entering into a buyer representation agreement.

3. Immediately after signing the buyer representation agreement.

4. Just before presenting an offer to the seller.

5. Upon the first property viewing.

6. After an offer from another buyer is received on the same property.

The correct answer is: Prior to entering into a buyer representation agreement.

Informing a buyer of the potential for multiple representation prior to entering into a buyer representation agreement is essential because it ensures that the buyer is fully aware of the implications of such representation on their interests. This disclosure allows the buyer to make an informed decision about whether to proceed with that agreement and to understand how their needs may be affected if the same representative is working for both the buyer and the seller. This timing is crucial as it protects the buyer's interests and establishes a transparent relationship between the buyer and the brokerage. It ensures that if multiple representation occurs, the buyer has already been informed and can weigh their options, potentially seeking alternate representation if they feel it necessary. While there are other stages mentioned in the options where multiple representation might also be disclosed, such as before an offer is presented or after signing agreements, informing the buyer before they commit to representation is the most ethically sound practice within real estate transactions.