Humber/Ontario Real Estate Course 4 Exam Practice

In real estate terms, what does 'representation' usually refer to under REBBA?

1. It is generally analogous to agency.

2. It refers to non-agency relationships.

3. It does not apply to listing agreements.

4. It applies only to seller agreements.

5. It is a buyer-broker relationship only.

6. It involves dual agency scenarios.

The correct answer is: It is generally analogous to agency.

'Representation' under the Real Estate and Business Brokers Act (REBBA) typically refers to the concept of agency, which establishes a fiduciary relationship between a client and a real estate professional. This means that when a real estate professional is representing a client, they are obligated to act in the best interests of that client, providing them with advice and guidance in real estate transactions. Agency is a fundamental principle in real estate, where agents owe their clients specific duties such as loyalty, full disclosure, and confidentiality. In the context of REBBA, 'representation' emphasizes the legal and ethical obligations that brokers and salespersons have towards their clients, paralleling agency principles. The other options present various scenarios or misconceptions about the role of representation in real estate. Representation is not just limited to non-agency relationships or specific agreements; it applies broadly to the duties and responsibilities brokers have regardless of whether the agreement is with a seller or a buyer. Additionally, while dual agency scenarios involve representation, the term itself encompasses all forms of agency relationships, not just those that might lead to dual agency situations. Hence, the correct understanding of representation is that it is aligned with agency principles, which is why the choice indicating that it is generally analogous to agency is accurate.