Humber/Ontario Real Estate Course 2 Exam Practice

If a property listing by Salesperson Danaldi is of interest to a buyer represented by Salesperson Allen from the same brokerage, what must occur?

1. No conflict of interest exists if the salespersons do not discuss their clients with each other or anyone else in the brokerage

2. The brokerage must obtain the verbal consent of both parties to the multiple representation

3. The brokerage must work with either the buyer or seller, terminate the other client relationship and refer that client to another brokerage

4. This multiple representation situation must be openly disclosed as soon as is feasibly possible and written consent obtained prior to an offer being presented

5. The salespersons must alternately represent clients in other transactions

6. Verbal consent suffices in this scenario

The correct answer is: No conflict of interest exists if the salespersons do not discuss their clients with each other or anyone else in the brokerage

In this scenario, the correct answer is A because it represents the best practice in handling a potential conflict of interest when salesperson Danaldi lists a property of interest to a buyer represented by salesperson Allen from the same brokerage. By refraining from discussing their clients with each other or anyone else in the brokerage, the salespersons are effectively maintaining confidentiality and avoiding any conflicts of interest that may arise from sharing information about their clients' transactions. Options B, C, D, and F suggest various steps or requirements that are not necessarily mandated in this specific scenario. Option E is not relevant to the situation described. Therefore, the most appropriate course of action to prevent a conflict of interest in this situation is for the salespersons to avoid discussing their clients with each other or anyone else in the brokerage.