In which situation would multiple representation occur?
Correct Answer
C) When the same agent represents both buyer and seller in a transaction
Multiple representation occurs when the same real estate agent or brokerage represents both the buyer and seller in the same transaction. This creates a potential conflict of interest and requires specific disclosure and consent procedures to be followed.
Why This Is the Correct Answer
This answer is correct because multiple representation means the same representative acting for more than one client in the same trade, such as one agent representing both the buyer and the seller. In Ontario this is permitted only after disclosure and each client's written consent (O. Reg. 567/05 ss. 22 and 22.0.1), and the agent must then treat both clients objectively and impartially.
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On a Monday a listing brokerage receives a prospective tenant's $2,600 rent deposit with an accepted agreement to lease. Under O. Reg. 567/05, when must the brokerage deposit the money into its real estate trust account?