Humber/Ontario Real Estate Course 1 Exam Practice

What does the term 'representation' generally imply under the Real Estate and Business Brokers Act (REBBA) 2002?

1. Is generally analogous to agency.

2. Applies to seller agreements, but not buyer agreements.

3. Refers to a non-agency relationship.

4. Does not apply to listing agreements.

The correct answer is: Is generally analogous to agency.

In the context of the Real Estate and Business Brokers Act (REBBA) 2002, the term 'representation' generally implies an agency relationship. When a real estate professional represents a client, they are legally obligated to act in the best interests of that client. This includes duties such as loyalty, confidentiality, obedience, disclosure, reasonable care, and accountability. Essentially, an agency relationship establishes a fiduciary duty where the agent must prioritize the client's interests above their own. Options B, C, and D are incorrect: - Option B stating that representation applies only to seller agreements is not accurate. Representation can apply to both seller and buyer agreements, depending on the nature of the relationship with the client. - Option C suggesting that representation refers to a non-agency relationship is misleading. In real estate terms, representation typically implies an agency relationship with defined duties and obligations. - Option D claiming that representation does not apply to listing agreements is also incorrect. Listing agreements, where a real estate agent represents a seller, are common examples of agency relationships in real estate transactions.