Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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How is multiple representation best described in a real estate transaction?

Allows brokerages to share confidential information between themselves
Can only occur if both the listing salesperson and selling salesperson work in the same branch of a multi-branch brokerage
Can generate significant risk for a brokerage due to conflict of interest
Is based on the legal assumption of shared confidences between brokerages
Is exclusive to seller's clients
Involves cooperative sales exclusively

The correct answer is: Can generate significant risk for a brokerage due to conflict of interest

Multiple representation in a real estate transaction involves a situation where a single brokerage represents both the buyer and the seller in the same transaction. This can create a significant risk for the brokerage due to the potential for a conflict of interest. The brokerage must prioritize the interests of both parties and ensure that they act fairly and impartially in the transaction. Overall, it is best described as generating significant risk due to the inherent conflicts that may arise. Options A, B, D, E, and F do not accurately describe multiple representation and are not the best description of this concept in a real estate transaction.