Humber/Ontario Real Estate Course 4 Exam Practice

What may occur if a salesperson shows a property without a signed seller representation agreement?

1. No agency relationship is created

2. It signifies a binding contract with the seller

3. Implied agency relationship could be formed

4. Salesperson breaches protocol

5. Third party exclusion applies

6. The seller has waived formal agreements

The correct answer is: Implied agency relationship could be formed

If a salesperson shows a property without a signed seller representation agreement, an implied agency relationship could be formed. This means that despite the absence of a formal agreement, the actions and behaviors of the salesperson might imply that they are representing the seller. Implied agency can arise through the conduct of the parties involved, such as the salesperson acting on behalf of the seller in showing the property. This situation can trigger legal responsibilities and obligations even without a written agreement in place. Option A is incorrect because some level of agency relationship can still be established through the actions of the parties, even without a signed agreement. Option B, D, E, and F are not the right choices because they do not accurately reflect the consequences of showing a property without a signed seller representation agreement.