Humber/Ontario Real Estate Course 4 Exam Practice

If Buyer Client Mendez does not consent to multiple representation, which step must ABC Realty Inc. take?

1. The negotiations must end because both buyer and seller consents are required.

2. Provide customer services to Buyer Mendez and client services to the seller.

3. Replace Salesperson Wallins with another salesperson from ABC Realty Inc.

4. Release Buyer Client Mendez to avoid multiple representation in negotiations.

5. Transfer Mendez's case to a different brokerage.

6. Assign another agent to handle the seller exclusively.

The correct answer is: Release Buyer Client Mendez to avoid multiple representation in negotiations.

In the context of real estate representation, if a buyer client does not consent to multiple representation, the responsible action for the brokerage is to release the buyer client to avoid conflicts of interest that may arise from representing both the buyer and the seller in the same transaction. This release allows Buyer Client Mendez to seek representation elsewhere, ensuring that their interests are fully represented without the complications that can come from a dual-role situation. The principle behind this action is grounded in the importance of clear and undivided loyalty to a single client, particularly in real estate transactions where negotiations can become complex and potentially contentious. Multiple representation can create ethical dilemmas and may impede the ability of a representative to advocate fully for one party's interests, which is why the brokerage must take the step to ensure Buyer Mendez can pursue alternative representation that aligns with their needs and concerns. Options regarding providing limited services or involving different salespersons do not adequately resolve the potential conflict of interest presented in this scenario, nor do they fulfill the ethical obligations of the brokerage to protect the client's interests. By releasing Mendez, ABC Realty Inc. ensures compliance with ethical standards while allowing the client to navigate the transaction process with a representation that fully aligns with their consent and requirements.