Humber/Ontario Real Estate Course 4 Exam Practice

What duty does ABC Realty Inc. owe to ACME Network Systems Inc. in a buyer representation agreement?

1. Has fiduciary obligations to the site owner

2. Seller is not owed a duty of care during negotiations

3. Owes a duty of care to ACME Network Systems Inc. in everything done for the client

4. Is involved in multiple representation or dual agency

5. Owes duties only to the listing broker

6. Represents the interests of both buyer and seller equally

The correct answer is: Owes a duty of care to ACME Network Systems Inc. in everything done for the client

The correct answer is that ABC Realty Inc. owes a duty of care to ACME Network Systems Inc. in everything done for the client. In a buyer representation agreement, the relationship between the real estate agent and the client is one of trust and responsibility. The duty of care means that the agent must act in the best interest of the client, ensuring that they are provided with all necessary information, advice, and support throughout the buying process. This encompasses a range of actions, including conducting market research, evaluating properties, and facilitating negotiations. This answer highlights the importance of the fiduciary relationship in real estate transactions, emphasizing that the agent's primary responsibility is to advocate for their client’s interests and provide professional guidance without conflicts of interest or negligence. The other options do not accurately reflect the obligations inherent in a buyer representation agreement. For instance, discussing the fiduciary obligations to the site owner misinterprets the nature of the client-agent relationship. Similarly, the incorrect association of duties towards the listing broker or representing both parties equally overlooks the agent’s specific commitment to serve the interests of one client in a dedicated manner.