Humber/Ontario Real Estate Course 2 Exam Practice

In a real estate transaction with ABC Realty Inc. and a co-operating brokerage, what is correct?

1. ABC Realty Inc. owes the seller limited, fiduciary, and regulatory obligations

2. Both ABC Realty Inc. and the co-operating brokerage owe fiduciary duties to the seller

3. ABC Realty Inc. is another term for the co-operating brokerage

4. The co-operating brokerage owes limited duty of care to the seller but a comprehensive one to the buyer

5. ABC Realty Inc. acts as a property manager for the transaction

6. The co-operating brokerage has no obligations to the seller

The correct answer is: The co-operating brokerage owes limited duty of care to the seller but a comprehensive one to the buyer

In a real estate transaction involving ABC Realty Inc. and a co-operating brokerage, it is important to understand the division of responsibilities between the parties. In this scenario, the correct statement is that the co-operating brokerage owes a limited duty of care to the seller but a comprehensive duty to the buyer. This division of duties is common practice in real estate transactions to ensure that both parties (buyer and seller) are represented fairly and professionally. The co-operating brokerage, which represents the buyer, is responsible for providing a comprehensive duty of care to protect the buyer's interests throughout the transaction. On the other hand, they owe a limited duty of care to the seller as their primary fiduciary duty lies with the buyer. It is essential for real estate professionals to understand these obligations and act accordingly to maintain ethical standards and provide proper representation to all parties involved in the transaction.