Humber/Ontario Real Estate Course 2 Exam Practice

What does a buyer representation agreement in Ontario establish?

1. Authority between brokerage and buyer customer

2. Exclusive relationship with buyer client

3. No specific duties owed to buyer

4. No detailed remuneration arrangements

5. Exclusive relationship with seller client

6. Duties of seller to buyer

The correct answer is: Exclusive relationship with buyer client

A buyer representation agreement in Ontario establishes an exclusive relationship with the buyer client. This means that the buyer is represented solely by the brokerage that they have entered into the agreement with. This exclusivity ensures that the brokerage and the agent are dedicated to working in the best interests of the buyer throughout the real estate transaction process. It also outlines the responsibilities, obligations, and commitments of both parties involved, providing clarity and protection for the buyer. The other options are incorrect because: - Option A is not the primary purpose of a buyer representation agreement; it is more about establishing a commitment to a specific buyer. - Option C is not true as specific duties are outlined and owed to the buyer under this agreement. - Option D is incorrect because detailed remuneration arrangements are typically specified in the agreement. - Option E is incorrect as it describes an exclusive relationship with a seller client, which is not the case for a buyer representation agreement. - Option F is inaccurate as it refers to duties of the seller to the buyer, while the buyer representation agreement focuses on the relationship and duties between the buyer and the brokerage.