Humber/Ontario Real Estate Course 4 Exam Practice

What level of duty of care is owed to buyer clients in real estate transactions?

1. A limited duty of care.

2. Full duty of care.

3. No duty of care for properties outside the brokerage's vicinity.

4. Duty of care only when initial offers are made.

5. Minimal duty only for complex transactions.

The correct answer is: Full duty of care.

The correct answer is that buyer clients are owed a full duty of care in real estate transactions. This means that as a real estate professional, you are obligated to act in the best interests of your buyer clients, providing them with the highest level of service, diligence, and loyalty. This encompassing duty includes being thorough in conducting due diligence, protecting the client's confidential information, and providing accurate information regarding properties and market conditions. In real estate transactions, the relationship between an agent and their client is founded on trust and responsibility, which necessitates a comprehensive approach to care. Buyers rely on agents for essential guidance and representation throughout the transaction process, and fulfilling this duty properly helps safeguard their interests. In contrast, the other options propose levels of care that do not fully align with professional standards in real estate practice. For instance, a limited duty of care or minimal duty would not adequately protect clients' interests, and suggesting that duty of care exists only under certain conditions would undermine the essential responsibilities of an agent. Therefore, recognizing that a full duty of care is owed reflects the serious nature of the fiduciary relationship and the commitment required from real estate professionals.