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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is a risk associated with multiple representation in a transaction?

It ensures no competition between buyers and sellers.
It is legally very straightforward.
It presents inherent risks due to competing interests of the parties involved.
It increases transparency to a great extent.
It involves no negotiation conflicts.
It eliminates the need for negotiation.

The correct answer is: It ensures no competition between buyers and sellers.

The correct answer is A because multiple representation in a transaction can lead to a lack of competition between buyers and sellers when one agent or brokerage represents both parties. This lack of competition may result in the parties not getting the best deal possible as the agent may not be fully advocating for the best interests of each party. Consequently, having no competition in the transaction can pose a risk by potentially limiting the parties' ability to negotiate effectively and achieve the best possible outcome. Options B, D, E, and F are incorrect because multiple representation is not legally straightforward, does not automatically increase transparency, may involve negotiation conflicts due to competing interests, and does not eliminate the need for negotiation, respectively.