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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When can a real estate brokerage utilize implied authorities?

  1. If the brokerage has been given a power of attorney.

  2. If the brokerage incurs out-of-pocket expenses.

  3. If the brokerage operates under a written representation agreement.

  4. When specific actions are not detailed in the agreement but are necessary.

  5. When the brokerage needs to adjust the purchase price.

  6. When the terms and conditions are ambiguous.

The correct answer is: When specific actions are not detailed in the agreement but are necessary.

Implied authorities are a necessary part of any business relationship, allowing for flexibility and the ability to act in situations not explicitly outlined in an agreement. In real estate transactions, implied authorities come into play when specific actions are not detailed in the agreement but are necessary for the completion of the transaction. This can include minor decisions or actions that are implied to be within the scope of the agreement to ensure that the transaction progresses smoothly. Options A, B, C, E, and F are not related to the concept of implied authorities. Power of attorney (Option A) grants specific powers and is not synonymous with implied authorities. Incurring out-of-pocket expenses (Option B), operating under a written representation agreement (Option C), adjusting the purchase price (Option E), and dealing with ambiguous terms and conditions (Option F) are separate considerations that do not directly pertain to implied authorities.