Humber/Ontario Real Estate Course 2 Exam Practice

When a brokerage has a signed representation agreement with a seller, it:

1. Establishes a buyer brokerage arrangement.

2. Has established a single representation arrangement with the seller.

3. Cannot work with a prospective buyer interested in that seller’s property.

4. Could be referred to as the cooperating brokerage.

5. Is automatically in a multiple representation situation.

6. Might co-represent either a buyer or another seller.

The correct answer is: Has established a single representation arrangement with the seller.

When a brokerage has a signed representation agreement with a seller, it has established a single representation arrangement with the seller. This means that the brokerage exclusively represents the seller's interests in the real estate transaction. This representation agreement outlines the duties and responsibilities the brokerage has towards the seller, such as loyalty, confidentiality, and obedience. The other options are incorrect because: A. Establishing a buyer brokerage arrangement would mean representing the buyer's interests, which is not the case when the brokerage has an agreement with the seller. C. The brokerage can work with prospective buyers interested in the seller's property, but they would be representing the seller's interests in the transaction. D. The cooperating brokerage is a different concept that relates to a brokerage cooperating with the listing brokerage to facilitate a transaction. E. Multiple representation situation occurs when a brokerage represents both the buyer and the seller in the same transaction, which is not the case here. F. Co-representing a buyer or another seller would mean the brokerage is representing both parties in the same transaction, which is not the scenario here.