Humber/Ontario Real Estate Course 4 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 4 Exam. Study with tailored quizzes and flashcards. Get insights into exam format and tips to succeed.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In an agency relationship, what must an agent do after the seller representation agreement expires?

There are several ways to terminate that relationship, two of which are by ratification and operation of law.
The agent must maintain the seller's confidentiality even after the seller representation agreement expires.
The agent must obey the seller's instructions both during the currency of the seller representation agreement and after it expires.
The terms 'single agency' and 'single representation' are two different relationships between agent and principal.

The correct answer is: The agent must maintain the seller's confidentiality even after the seller representation agreement expires.

The reason why maintaining the seller's confidentiality even after the seller representation agreement expires is correct lies in the fundamental principles of agency law, particularly the duty of confidentiality. Agents are obligated to keep their clients' information private to protect their interests, and this duty continues beyond the term of the representation agreement. This principle is grounded in ethical standards and legal requirements that govern agency relationships. An agent who breaches this confidentiality risk legal repercussions and loss of trust, which can significantly impact their reputation and business practice. Therefore, even after the agreement ends, the agent still owes the seller a duty to safeguard confidential information obtained during their working relationship. Addressing the other options, while it is true that there are various methods to terminate an agency relationship, such as by ratification and operation of law, this is not the pivotal duty after the agreement ends. Similarly, the obligation to follow the seller’s instructions applies only while the agreement is in effect; once it expires, the agent is not bound to continue to follow such directives. Lastly, although the terms 'single agency' and 'single representation' refer to different types of agency relationships, they do not relate directly to the responsibilities of an agent after the agreement has expired.