Humber/Ontario Real Estate Course 4 Exam Practice

Who is the customer of a brokerage?

1. Agency principal

2. Brokerages’ client

3. Customer of another brokerage

4. Real estate agent

5. Sale representative

6. Seller

The correct answer is: Brokerages’ client

The customer of a brokerage is the brokerages’ client, which is the correct answer. In real estate, the client is the person or entity that has engaged the services of the brokerage to act on their behalf in a real estate transaction. This relationship is formalized through a written agreement, which outlines the responsibilities and expectations between the client and the brokerage. This distinction is important because it defines the level of service and fiduciary duty owed by the brokerage to the client. The brokerage has a commitment to protect the client's interests and provide them with expert guidance throughout the transaction process. Understanding this relationship is essential for real estate professionals, as it influences how they interact with clients and customers alike, ensuring that the needs of the client are prioritized. In contrast, other choices refer to individuals or parties that do not represent the client relationship directly in terms of service commitment from the brokerage. The agency principal, for example, may lead the brokerage but is not the customer. A seller could be a specific type of client, but without the clarifying context, they do not encompass all clients served by a brokerage. Similarly, real estate agents or sales representatives function as facilitators and intermediaries but are not customers of the brokerage themselves.