Humber/Ontario Real Estate Course 2 Exam Practice

What fiduciary duties does the salesperson from XYZ Realty Inc. have when negotiating for ABC Corp's new commercial building site?

1. The salesperson has fiduciary obligations to the site owner

2. The seller is not represented by the brokerage and owes no duty of care

3. XYZ Realty Inc. owes a duty of care to ABC Corp. in all negotiations

4. The salesperson is involved in multiple representation

The correct answer is: XYZ Realty Inc. owes a duty of care to ABC Corp. in all negotiations

The correct answer is C. XYZ Realty Inc. owes a duty of care to ABC Corp. in all negotiations. In this scenario, the salesperson is representing ABC Corp in the negotiation for their new commercial building site. As a result, the brokerage, XYZ Realty Inc., has a fiduciary duty to act in the best interests of ABC Corp during the negotiation process. This duty requires the salesperson to provide competent and diligent representation to their client, ensuring they are protected and well-informed throughout the transaction. Options A, B, and D are incorrect: A. The statement that the salesperson has fiduciary obligations to the site owner is inaccurate because the salesperson is representing ABC Corp, the buyer, in this situation, not the site owner. B. The statement that the seller is not represented by the brokerage and owes no duty of care is incorrect as the question pertains to the duties of the salesperson representing ABC Corp in the negotiation. D. The mention of multiple representation is incorrect as it is not implied that the salesperson is representing both parties in this scenario; instead, the salesperson is negotiating on behalf of ABC Corp.