Humber/Ontario Real Estate Course 4 Exam Practice

What does a buyer representation agreement in Ontario establish?

1. An authority with a buyer customer

2. An exclusive relationship with the buyer client

3. No specific duties to the buyer

4. No remuneration details as the seller pays

The correct answer is: An exclusive relationship with the buyer client

A buyer representation agreement in Ontario establishes an exclusive relationship with the buyer client. This means that the real estate agent has a fiduciary duty to act in the best interests of the buyer, including loyalty, obedience, confidentiality, disclosure, accounting, and reasonable care and skill. By signing this agreement, the buyer can expect full representation from their agent in the purchase process, ensuring their interests are prioritized throughout the transaction. Option A is incorrect because a buyer representation agreement goes beyond just an authority with a buyer customer; it establishes a more comprehensive relationship. Option C is incorrect because a buyer representation agreement does come with specific duties to the buyer, as mentioned above. Option D is incorrect because the buyer representation agreement typically outlines the details of compensation, which can vary and may involve the buyer, the seller, or both parties.