Humber/Ontario Real Estate Course 2 Exam Practice

Which statement accurately reflects the duty of care owed to a client by a brokerage?

1. Is limited to the initial consultation and agreement

2. Is never implied during interactions

3. Is limited to showing skill and care in transactions

4. Includes all actions taken or should be taken for the client

5. Is confined to dealing with significant transaction details

6. Includes maintaining confidentiality and providing advice

The correct answer is: Includes all actions taken or should be taken for the client

The correct answer is D. This option accurately reflects the duty of care owed to a client by a brokerage. It states that the duty of care includes all actions taken or that should be taken for the client. This means that a brokerage is responsible for acting in the best interests of their clients and ensuring that all necessary steps are taken to protect the client's interests throughout the real estate transaction. Options A, B, C, E, and F are incorrect because they do not fully encompass the duty of care owed to a client by a brokerage. Option A suggests that the duty of care is limited to the initial consultation and agreement, which is not the case. Option B states that the duty of care is never implied during interactions, which is incorrect as brokerages are expected to act with care and professionalism at all times. Option C mentions that the duty of care is limited to showing skill and care in transactions, which is a narrow interpretation. Option E suggests that the duty of care is confined to dealing with significant transaction details, which is not the case as the duty of care is more extensive. Option F implies that the duty of care includes maintaining confidentiality and providing advice, which is a part of the duty but does not fully encapsulate it.