Humber/Ontario Real Estate Course 2 Exam Practice

To avoid a conflict of interest, what precaution should Salesperson Garcia take when representing both parties in a transaction?

1. Ensure both parties sign a written consent form outlining the dual representation.

2. Ensure both parties communicate only through their respective lawyers.

3. Disclose any potential conflict of interest only if asked by one of the parties.

4. Provide less information to each party to avoid any bias.

The correct answer is: Ensure both parties sign a written consent form outlining the dual representation.

In this scenario, the most appropriate precaution for Salesperson Garcia to take when representing both parties in a transaction is to ensure both parties sign a written consent form outlining the dual representation (Option A). This is crucial because having a written consent form signed by both parties clearly establishes and acknowledges that they are aware of the dual representation situation. It helps to mitigate any potential conflict of interest and ensures transparency in the transaction. The other options are incorrect: - Option B suggesting that both parties communicate only through their respective lawyers is impractical and may not always be necessary or feasible in every real estate transaction. - Option C stating that disclosing any potential conflict of interest only if asked by one of the parties is not the best approach, as full disclosure is essential to maintain trust and transparency. - Option D recommending providing less information to each party to avoid bias is not appropriate as both parties should receive all relevant information to make informed decisions.