Humber/Ontario Real Estate Course 4 Exam Practice

What is a common assumption set out in the listing agreement regarding the co-operating brokerage?

1. Assumes co-operating brokerage represents the seller, unless disclosed otherwise.

2. Lists similar properties without any conflict of interest rule.

3. Represents the seller's interests continually.

4. States the agency relationship after signing.

5. Indicates no assumption about representation.

6. Requires buyer's interest information upfront.

The correct answer is: Assumes co-operating brokerage represents the seller, unless disclosed otherwise.

The correct answer reflects a common industry practice that establishes a baseline understanding of the relationships involved in real estate transactions. Typically, the listing agreement recognizes that the co-operating brokerage is assumed to represent the seller unless there is a clear disclosure that indicates otherwise. This assumption is crucial as it helps to define the roles of the brokerages involved and sets expectations for the parties in the transaction. This understanding fosters transparency in real estate dealings, clarifying who is advocating for whom. Without this clarification, buyers might operate under the false notion that the co-operating brokerage is working for their best interests when, in fact, their obligations may lie solely with the seller. Having this foundational belief allows for better communication and negotiation between the parties involved. It’s crucial for agents to ensure that clients are fully aware of the dynamics of representation from the outset, promoting ethical practices in the industry.