Humber Real Estate - Course 2, Module 1, Explaining
Services Available to a Seller or Buyer Exam 2025–
2026 Accurate Real Exam Questions and Verified
Correct Answers JUST RELEASED
The agent could be liable to the principal for any injuries or for breach of contract. -
answer>>>What are the consequences if an agent acts outside of the scope of the
authority granted?
No, unless precise and clear authority is granted.
Note: ... BUT even with approval, this can put a brokerage in a position with legal
ramifications, so a brokerage would first ask for an extension to the offer so the seller can
sign themselves as this is much less risky. - answer>>>Does a brokerage or a salesperson
have the authority to sign a contract on behalf of a principal?
Involve other brokerages in the marketing / selling process. The agency obligation is
particular to that original brokerage only. Delegation such as this would need to be
documented in a listing agreement. - answer>>>Even though delegation of duties is an
implied authority, what is a brokerage NOT allowed to do under agency law?
False. They can only receive a deposit relating to the purchase, which is now considered
monies held in trust for the seller.
Note: Upon completion of the transaction, the buyer receives a credit towards the
purchase price for the deposit amount. The deposit monies themselves are usually
,applied later to the commission owed by the seller to the brokerage. - answer>>>True or
false? Brokerages have an implied authority to receive all or part of the purchase price.
True. Typically, an agreement with a principal will identify the commission or
remuneration paid to the brokerage, which includes any expenses incurred. If the
principal requests extra services (i.e. alternate forms of advertising), the agent can seek
additional reimbursement, only if agreed to by the principal. - answer>>>True or false? A
brokerage cannot incur expenses on behalf of the principal, or seek reimbursement
without express authority?
- Duty of indemnification
- Duty of remuneration
- Duty regarding any other obligations agreed to - answer>>>What duties does the
principal owe to the agent?
The agent must act according to the lawful instructions of the principal, and in doing so,
may not be held responsible for any liability, claim, loss, cost, damage or injury resulting
from these acts. As a general rule of agency, the principal must compensate an agent for
loss or damage incurred in carrying out lawful acts. - answer>>>Define 'Duty of
Indemnification'
No. The brokerage should be indemnified as the buyer was required to make their own
enquiries to confirm the condition of the property. This is an example of 'Duty of
Indemnification'.
, Note: If the agent acts unlawfully or negligently, or is in breach of duty, the principal has
no duty to indemnify the agent. - answer>>>A buyer completes the purchase of a
property, but shortly after taking possession discovers there is a latent defect to the land
or improvements. Is the brokerage liable?
The obligation of the principal to pay the brokerage for the services agreed to and
provided as part of the agency relationship between the parties. - answer>>>Define 'Duty
of Remuneration'
The principal must perform any other obligations as agreed to by both parties in the
representation agreement.
Note: It's strongly recommended that any other obligations be formally documented in
the representation agreement rather than agreed to verbally in order to avoid any
misunderstandings) - answer>>>Define 'Duty regarding any other obligations agreed to'
The standard of care and skill provided by a salesperson to a client or customer. -
answer>>>What does the phrase 'Duty of Care' refer to?
- Provide information
- Perform functions (if any)
- Limited disclosure and privacy oblitations
Note: Customers are not given advice as the act of providing advice can unintentionally
alter a customer relationship to that of a client. - answer>>>What limited responsibilities
are owed to a Customer under 'Duty of Care'?
Services Available to a Seller or Buyer Exam 2025–
2026 Accurate Real Exam Questions and Verified
Correct Answers JUST RELEASED
The agent could be liable to the principal for any injuries or for breach of contract. -
answer>>>What are the consequences if an agent acts outside of the scope of the
authority granted?
No, unless precise and clear authority is granted.
Note: ... BUT even with approval, this can put a brokerage in a position with legal
ramifications, so a brokerage would first ask for an extension to the offer so the seller can
sign themselves as this is much less risky. - answer>>>Does a brokerage or a salesperson
have the authority to sign a contract on behalf of a principal?
Involve other brokerages in the marketing / selling process. The agency obligation is
particular to that original brokerage only. Delegation such as this would need to be
documented in a listing agreement. - answer>>>Even though delegation of duties is an
implied authority, what is a brokerage NOT allowed to do under agency law?
False. They can only receive a deposit relating to the purchase, which is now considered
monies held in trust for the seller.
Note: Upon completion of the transaction, the buyer receives a credit towards the
purchase price for the deposit amount. The deposit monies themselves are usually
,applied later to the commission owed by the seller to the brokerage. - answer>>>True or
false? Brokerages have an implied authority to receive all or part of the purchase price.
True. Typically, an agreement with a principal will identify the commission or
remuneration paid to the brokerage, which includes any expenses incurred. If the
principal requests extra services (i.e. alternate forms of advertising), the agent can seek
additional reimbursement, only if agreed to by the principal. - answer>>>True or false? A
brokerage cannot incur expenses on behalf of the principal, or seek reimbursement
without express authority?
- Duty of indemnification
- Duty of remuneration
- Duty regarding any other obligations agreed to - answer>>>What duties does the
principal owe to the agent?
The agent must act according to the lawful instructions of the principal, and in doing so,
may not be held responsible for any liability, claim, loss, cost, damage or injury resulting
from these acts. As a general rule of agency, the principal must compensate an agent for
loss or damage incurred in carrying out lawful acts. - answer>>>Define 'Duty of
Indemnification'
No. The brokerage should be indemnified as the buyer was required to make their own
enquiries to confirm the condition of the property. This is an example of 'Duty of
Indemnification'.
, Note: If the agent acts unlawfully or negligently, or is in breach of duty, the principal has
no duty to indemnify the agent. - answer>>>A buyer completes the purchase of a
property, but shortly after taking possession discovers there is a latent defect to the land
or improvements. Is the brokerage liable?
The obligation of the principal to pay the brokerage for the services agreed to and
provided as part of the agency relationship between the parties. - answer>>>Define 'Duty
of Remuneration'
The principal must perform any other obligations as agreed to by both parties in the
representation agreement.
Note: It's strongly recommended that any other obligations be formally documented in
the representation agreement rather than agreed to verbally in order to avoid any
misunderstandings) - answer>>>Define 'Duty regarding any other obligations agreed to'
The standard of care and skill provided by a salesperson to a client or customer. -
answer>>>What does the phrase 'Duty of Care' refer to?
- Provide information
- Perform functions (if any)
- Limited disclosure and privacy oblitations
Note: Customers are not given advice as the act of providing advice can unintentionally
alter a customer relationship to that of a client. - answer>>>What limited responsibilities
are owed to a Customer under 'Duty of Care'?
