Humber/Ontario Real Estate Course 1 Exam Practice

When a seller is represented by a brokerage, what is the correct term for that person?

1. A buyer

2. A client

3. A customer

4. A registrant

5. A participant

6. A customer client

The correct answer is: A client

In real estate terminology, when a seller is represented by a brokerage, that individual is referred to as a client. This indicates a formal relationship where the brokerage has a fiduciary duty to act in the seller's best interests. The duty entails loyalty, care, and full disclosure, which creates a legal obligation for the brokerage to prioritize the client's needs throughout the transaction process. The other terms mentioned carry different meanings in the context of real estate. A buyer typically refers to an individual looking to purchase property, while a customer describes someone who may receive services but does not have the same level of representation or legal obligations in place. A registrant pertains to someone who is licensed to practice in real estate but is not necessarily involved in a client relationship. A participant generally relates to individuals taking part in a transaction but does not indicate the level of representation. Lastly, "customer client" is not a standard term in this context and is not recognized in formal real estate practices. Understanding these definitions is crucial for comprehending the dynamics of buyer-seller representation in real estate transactions.