Humber/Ontario Real Estate Course 4 Exam Practice

What establishes the standard of care in real estate transactions?

1. Real estate salespersons’ conduct under similar circumstances.

2. The forms and templates utilized by brokerages.

3. A limited duty of care is owed to both clients and customers.

4. The recommendations of home inspectors.

5. Buyer clients’ preferences.

The correct answer is: Real estate salespersons’ conduct under similar circumstances.

The correct answer is that the standard of care in real estate transactions is established by the conduct of real estate salespersons under similar circumstances. This concept stems from the idea that professionals in the field are expected to act responsibly and competently, comparing their actions to those of their peers. If a salesperson follows established norms and practices that are deemed acceptable within the industry given the specific situation, they are fulfilling their duty to provide an appropriate level of care. Other options, while relevant in some contexts, do not establish the legal standard of care in the same way. For instance, the forms and templates used by brokerages may provide guidance or structure to the transaction process, but they do not necessarily define the professional obligations of salespersons in terms of care. Similarly, the duty of care owed to clients and customers indeed exists, but it is not limited and is informed by how real estate professionals behave in practice. Recommendations from home inspectors are important for specific issues related to property condition but do not establish the general standard of care in transactional matters. Lastly, buyer clients’ preferences can influence decisions but do not dictate the expected standard of behavior from salespersons in the real estate profession.