Humber/Ontario Real Estate Course 4 Exam Practice

In a buyer representation agreement, which statement best reflects the obligation of the brokerage if the property is listed by them and the buyer is a client?

1. The brokerage must act in the best interest of one party only

2. The brokerage must act impartially and equally protect both parties

3. The brokerage cannot represent any other clients for the same property

4. The brokerage is required to offer a discount on the commission

5. The brokerage need not disclose any relationships

6. The brokerage only has to advise the buyer on the market value

The correct answer is: The brokerage must act impartially and equally protect both parties

The correct answer highlights the brokerage's obligation to act impartially and equally protect both parties involved in the transaction. In a scenario where a buyer has a representation agreement with a brokerage that also lists the property, the brokerage must uphold fiduciary duties to their client (the buyer) while also recognizing the interests of the seller (as they are also represented by the same brokerage). This dual representation requires the brokerage to navigate both relationships with care, ensuring that neither party's interests are compromised. Impartiality is essential to maintaining trust with both the buyer and the seller, and it aligns with the legal and ethical responsibilities of real estate professionals. The brokerage must communicate relevant information to both parties and ensure that the rights and obligations of each party are upheld even when they represent both sides. The other options lack relevance to this situation. For instance, the idea that the brokerage must act in the best interests of one party only contradicts the nature of dual representation. Stating that the brokerage cannot represent other clients for the same property misinterprets the concept of dual agency, which allows the representation of both the buyer and seller. Offering a discount on the commission is not a requirement and varies by brokerage policies. Not disclosing relationships undermines transparency, and advising solely on