Humber/Ontario Real Estate Course 2 Exam Practice

If a sales representative and a seller meet to establish marketing plans and sign a seller representation agreement, what best describes this relationship?

1. The brokerage acts as a middleman.

2. The agent acts solely as a consultant.

3. The salesperson is not officially an agent.

4. The salesperson is the seller's agent.

5. The seller must fulfill three duties to the agent.

6. The seller retains partial representation rights.

The correct answer is: The salesperson is the seller's agent.

When a sales representative meets with a seller to establish marketing plans and sign a seller representation agreement, this signifies that the salesperson is entering into an agency relationship with the seller. By signing the seller representation agreement, the salesperson is becoming the seller's agent. As an agent, the sales representative will have a fiduciary duty to act in the seller's best interests, provide loyalty, obedience, confidentiality, disclosure, and accounting. Option A is incorrect because the brokerage is not acting as a middleman; rather, the salesperson is the direct representative of the seller. Option B is incorrect because the agent in this scenario is not solely acting as a consultant but as a full-fledged representative with fiduciary duties. Option C is incorrect because in this case, the salesperson is officially functioning as an agent. Option E is incorrect because the duties lie with the seller towards the agent, not the other way around. Option F is incorrect as the seller retains the representation of the agent under the terms of the agreement, not partial representation rights.