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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Which scenario exemplifies an agency authority that is terminated by agreement or expiry?

When a property purchase is finalized by the buyer and seller.
When the seller unilaterally revokes the authority assigned to the brokerage.
When the brokerage and buyer client jointly decide to cancel a buyer representation agreement.
When a transaction is completed, and the buyer acquires the property.
When a lease agreement term has expired naturally.
When a property's appraisal value is disputed by both parties.

The correct answer is: When the brokerage and buyer client jointly decide to cancel a buyer representation agreement.

In the scenario presented in option C, the termination of agency authority occurs by agreement between the brokerage and the buyer client to cancel a buyer representation agreement. This termination is consensual and based on mutual understanding between the parties involved, leading to the agency authority being terminated in a planned and agreed-upon manner. Option A, D, and F do not relate to the termination of agency authority by agreement or expiry. In option A, the finalization of a property purchase by the buyer and seller does not necessarily terminate the agency agreement between the brokerage and the client. In option D, the completion of a transaction and the buyer acquiring the property might signify the completion of a deal but does not terminate the agency authority. Option F, pertaining to a dispute over a property's appraisal value, does not necessarily lead to the termination of agency authority. Option B involves the unilateral revocation of authority by the seller, which is not a termination by agreement as in the case of option C. Lastly, option E refers to the natural expiry of a lease agreement term, which is a different scenario compared to the termination of agency authority through mutual agreement. Therefore, option C stands out as the correct choice as it aligns with the termination of agency authority by agreement or expiry in the given scenarios.