Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following is NOT a duty the principal/seller owes to their agent (brokerage)?

1. Fulfillment of representation agreement obligations

2. Conducting necessary due diligence

3. Reimbursement of agreed remuneration

4. Indemnifying the agent

5. Acting honorably and faithfully

6. Provision of accurate and truthful information

The correct answer is: Conducting necessary due diligence

The choice regarding conducting necessary due diligence is not typically considered a duty owed to the agent by the principal or seller. In a real estate context, it is generally the responsibility of the agent to conduct due diligence on behalf of their client. This includes investigating property values, title issues, and other relevant factors that affect the transaction. The other options represent specific duties that the principal/seller does owe to their agent. For example, fulfilling the representation agreement obligations is fundamental, as it signifies that both parties have a mutual understanding and commitment to the terms of their agreement. Reimbursement of agreed remuneration is also a key duty, as agents expect to be compensated for their services as outlined in the agreement. Indemnifying the agent refers to protecting the agent from any liabilities or claims that may arise while they are representing the seller. Acting honorably and faithfully is essential in any fiduciary relationship, emphasizing the ethical duty to work in the best interest of the principal. Provision of accurate and truthful information is crucial, as agents rely on the information provided by their clients to carry out their duties effectively.