Humber/Ontario Real Estate Course 2 Exam Practice

If a seller accepts an offer after a property showing that was not listed, and acknowledges the salesperson was acting on their behalf, what has been created?

1. An agency relationship by ratification

2. No agency agreement due to lack of ratification

3. Agency relationship by operation of law

4. Non-binding relationship to the brokerage

5. Personal commitment without legal backing

6. Informal agreement pending signing

The correct answer is: An agency relationship by ratification

An agency relationship by ratification has been created. In this scenario, the seller accepted an offer after a property showing that was not listed but acknowledged that the salesperson was acting on their behalf. Ratification occurs when a person (in this case, the seller) accepts or confirms an act that was performed on their behalf. By accepting the offer and acknowledging the salesperson's actions, the seller has effectively ratified the agency relationship, creating a valid agency agreement. This is why option A is the correct answer. Options B, C, D, E, and F are incorrect: - Option B is incorrect because an agency relationship was created through ratification, despite the lack of a formal listing at the time of the offer. - Option C is incorrect as the agency relationship was not created by operation of law but rather through the seller's acknowledgment and acceptance of the salesperson's actions. - Option D is incorrect as the relationship created was not non-binding, but rather a valid agency relationship. - Option E is incorrect as the commitment between the seller and the salesperson does have legal backing through ratification. - Option F is incorrect because the agreement is not informal and pending signing; instead, it has been ratified by the seller's acceptance of the offer.