Humber/Ontario Real Estate Course 2 Exam Practice

When a buyer makes a statement regarding the impartiality of the brokerage in the buyer representation agreement, what is correct?

1. The brokerage must inform only one party about the details of the transaction

2. The brokerage must act impartially and equally protect both parties

3. The client cannot negotiate any terms once the agreement is signed

4. The purchaser is responsible for all inspection costs

5. The responsibility for confidentiality lies solely with the seller

6. The statement must be notarized to be valid

The correct answer is: The brokerage must act impartially and equally protect both parties

In a buyer representation agreement, when a buyer makes a statement regarding the impartiality of the brokerage, the correct statement is that the brokerage must act impartially and equally protect both parties. This ensures that the brokerage does not show favoritism towards either the buyer or the seller and works in the best interests of both parties involved in the transaction. Option A is not correct because the brokerage is required to act in an impartial manner and provide all parties involved with relevant information regarding the transaction. Option C is not correct as clients can still negotiate terms even after signing the buyer representation agreement. The agreement outlines the terms of the representation but does not prevent further negotiations between the parties. Option D is not correct as inspection costs are typically the responsibility of the buyer, but it is not directly related to the impartiality of the brokerage. Option E is not correct as confidentiality obligations usually apply to both the buyer and the seller, not just one party. Option F is not correct as a statement regarding the impartiality of the brokerage in a buyer representation agreement does not need to be notarized to be considered valid.