Humber/Ontario Real Estate Course 2 Exam Practice

Under what condition is multiple representation permissible?

1. It is always permitted without any restrictions.

2. It occurs only with salespersons in different branch offices.

3. It is strictly prohibited by law.

4. Informed written consent from all clients involved is required.

5. The brokerage must not disclose any details to either party.

6. It happens only when a broker of record is involved.

The correct answer is: Informed written consent from all clients involved is required.

Multiple representation, where one real estate professional represents more than one party in a transaction, is permissible under specific conditions. One of the key requirements for multiple representation to be allowed is obtaining informed written consent from all clients involved. This ensures that all parties are aware of the situation and agree to the arrangement. Options A, B, C, E, and F are incorrect for various reasons: - Option A is inaccurate as multiple representation is not always allowed without any restrictions. - Option B incorrectly suggests that multiple representation only occurs between salespersons in different branch offices, which is not the case. - Option C is wrong as multiple representation is not strictly prohibited by law, but rather subject to certain conditions. - Option E is incorrect because while confidentiality is crucial in real estate transactions, a lack of disclosure to either party is not a condition for multiple representation. - Option F is not entirely accurate as multiple representation can occur without a broker of record being directly involved, as long as the necessary consent is obtained.