Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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What role does a brokerage play in an agency relationship?

The principal of the relationship
Only owes fiduciary duties
An agent under common law
A third-party participant
A neutral consultant
Independent of agency duties

The correct answer is: An agent under common law

In an agency relationship, a brokerage typically plays the role of an agent under common law. This means that the brokerage acts on behalf of the principal (the client) in real estate transactions. The brokerage has a fiduciary duty to the principal, which involves acting in the best interests of the client, maintaining confidentiality, loyalty, obedience, disclosure, and accounting for all funds. Therefore, option C is the correct answer because it accurately represents the role of a brokerage in an agency relationship. Options A, B, D, E, and F are incorrect: A. The brokerage is not the principal in the relationship but rather acts on behalf of the principal. B. While the brokerage owes fiduciary duties to the client, it is not the only aspect of its role in an agency relationship. D. The brokerage is not a third-party participant but an agent acting on behalf of the principal. E. A brokerage is not a neutral consultant but has a legal obligation to represent the best interests of the client. F. A brokerage is not independent of agency duties but is specifically tasked with representing the principal in real estate transactions.