Humber/Ontario Real Estate Course 2 Exam Practice

Which statement is correct about the buyer representation agreement?

1. If I understand this form correctly, you cannot work with any other buyer clients simultaneously representing my interests

2. I have to pay your brokerage no matter what

3. If the home I am interested in is listed by your brokerage, you must act impartially and equally protect both parties

4. You are required to show me every property I am interested in

5. You only receive remuneration if no other brokerage is involved

6. You cannot represent other clients when representing my interests

The correct answer is: I have to pay your brokerage no matter what

The correct answer is B. In a buyer representation agreement, it specifies that the buyer is responsible for paying the brokerage a commission, regardless of whether the buyer ultimately purchases a property. This is a standard practice in real estate transactions where the buyer's agent receives compensation for their services from the buyer. This ensures that the buyer's agent is fairly compensated for their time and expertise throughout the home buying process. Options A, C, D, E, and F are not correct regarding the buyer representation agreement for various reasons. Option A is incorrect because in some cases, a buyer representation agreement may allow the real estate agent to work with other buyer clients simultaneously. Option C is incorrect because if the home the buyer is interested in is listed by the agent's brokerage, certain rules and obligations apply, but there is not an explicit requirement for impartiality. Option D is incorrect because the agent is not obligated to show every property the buyer is interested in, especially if the properties do not meet the buyer's criteria. Option E is incorrect because the agent may still receive compensation even if another brokerage is involved in the transaction. Option F is incorrect because typically, the buyer representation agreement does not prevent the agent from representing other clients while representing the buyer's interests.