What happens when a real estate salesperson represents both the buyer and seller in the same transaction?
Correct Answer
C) Multiple representation requires written disclosure and consent from both parties
Multiple representation is permitted but requires written disclosure to both parties and their informed consent. The salesperson must remain neutral and cannot advocate for either party's interests over the other's.
Why This Is the Correct Answer
Option C is correct because Canadian real estate legislation, including TRESA in Ontario and similar acts in other provinces, explicitly permits multiple representation when proper procedures are followed. The law requires written disclosure to both parties explaining the nature of multiple representation and its limitations, followed by written consent from both buyer and seller. This ensures informed decision-making and protects both parties' interests through transparency and acknowledgment of the arrangement's constraints.
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- → A status certificate delivered to a buyer omits a $4,000 special assessment that the board levied against the unit after the current budget date to increase the reserve fund. The buyer relied on the certificate and closed. Under the Condominium Act, 1998, what is the result?
- → A seller's salesperson is estimating the buyer's costs of reviewing an Ontario condominium unit's status certificate. What is the most the corporation may charge for providing the certificate?
- → A listing salesperson expects offers next week on a resale condominium unit and knows buyers will want the status certificate. By when must the corporation give a status certificate once it is requested?
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- → A buyer reviewing a status certificate asks what the condominium's reserve fund may be spent on. Under the Condominium Act, 1998, what is the permitted purpose?
- → An established Ontario condominium corporation completed its most recent reserve fund study in 2024. Under O. Reg. 48/01, when must it complete its next reserve fund study?
- → A buyer's status certificate shows that the corporation received a new reserve fund study two months ago, and the board has not yet sent owners anything about it. What does the Condominium Act, 1998 require of the board?
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