Humber/Ontario Real Estate Course 2 Exam Practice

When must Salesperson Davis inform Buyer Bouchard about the potential for multiple representation under REBBA?

1. Before preparing an offer for Buyer Bouchard.

2. Prior to entering into a buyer representation agreement with Buyer Bouchard.

3. Immediately after Buyer Bouchard signs a buyer representation agreement.

4. Just before presenting Buyer Bouchard's offer to the seller.

5. After an offer has been accepted, but before closing.

6. At the initial consultation with Buyer Bouchard.

The correct answer is: Prior to entering into a buyer representation agreement with Buyer Bouchard.

In Ontario real estate, it is crucial for a salesperson to disclose the potential for multiple representation under the Real Estate and Business Brokers Act (REBBA). Multiple representation occurs when a real estate brokerage represents both the buyer and the seller in the same transaction. The correct answer is prior to entering into a buyer representation agreement with Buyer Bouchard (Option B). This is the most appropriate timing to disclose the potential for multiple representation because it ensures transparency and allows Buyer Bouchard to make an informed decision before formalizing the relationship with the salesperson. By informing the buyer before entering into the agreement, Salesperson Davis is complying with ethical standards and fulfilling their duty to act in the best interests of the client. Options A, C, D, E, and F are incorrect because they do not align with the appropriate timing for informing Buyer Bouchard about the potential for multiple representation. It is essential to disclose this information before committing to a formal agreement to ensure transparency and avoid conflicts of interest.