Humber Real Estate - Course 2, Module
1, Explaining Services Available to a
Seller or Buyer Exam Questions and
Answers
The relationship between two parties in which one party (the agent) accepts
responsibility for representing the other party (the principal) in dealing with a third
party. - answer-Under Ontario law, how is an 'agency relationship' defined?
Client & Customer - answer-While common law uses the terms 'Principal' and 'Third
Party', what terms does REBBA use instead?
The Common Law of Agency - answer-The underlying relationship of the brokerage,
salesperson, seller and buyer is based on what?
Someone who is not directly connected with a legal transaction but may be affected
by it, OR supporting one of the people involved, i.e. lawyer, home inspector, etc. -
answer-In relation to a contract, how is a third party defined?
Representation - answer-Under REBBA, what is the equivalent for the legislative
term for "agency"?
The brokerage - answer-In a real estate transaction, who is the 'Agent'?
A seller or buyer - answer-In a real estate transaction, who is usually the 'Principal'?
Representation - answer-Agency is also known as ...
Representation Agreement - answer-A Listing (Seller Agency) Agreement / Buyer
Agency Agreement is also known as ...
Agreement (Conveyance of Interest in Real Estate) - answer-Agreement of Purchase
and Sale is also know as ...
Multiple Representation - answer-Dual Agency is also known as ...
Convey Offer - answer-Present Offer is also known as ...
Acquisition / Divestiture by Registrant - answer-Purchase / Sale by Registrant
The seller and buyer - answer-Who are the 'Parties' to a real estate transaction?
Employee / Employer relationship with authorization to trade on behalf of their
respective brokerages. - answer-What type of relationship does a salesperson have
with their brokerage from a legal perspective?
, Yes. Everyone must protect the client's best interests. - answer-Once an agency
relationship is established between a brokerage and a client, does the agreement
apply to all brokers & salespersons employed by the brokerage?
The agent who is authorized to trade in real estate on behalf of others. - answer-
Define 'Brokerage' according to REBBA
Client - answer-Principal is also known as ...
Someone who authorizes an agent to act on their behalf in an agency relationship,
and provides information and lawful instructions to the agent regarding the
transaction. - answer-What is a 'Principal'?
The seller - answer-When a brokerage represents a seller when listing a property,
who is the 'Principal'?
The buyer - answer-When a brokerage represents a buyer when showing properties
for sale, who is the 'Principal'?
Customer - answer-What is the comparable term to 'Third Party' under REBBA?
Third Party - answer-A brokerage representing only a seller would consider a buyer
as a _________ or a customer?
A relationship of trust with one or more parties. - answer-What does 'Fiduciary' refer
to in relation to a Representation Agreement?
Fiduciary - answer-An agent (brokerage) as a __________ has the legal obligation to
act in the principal's (seller's or buyer's) best interests.
- Full disclosure (of all facts known)
- Obedience (obey the lawful instructions of the principal)
- Confidentiality (all info that is confidential will not be disclosed)
- Competence (provide all services competently)
- Accounting (responsible handling of all documents and funds related to the
transaction) - answer-In a 'Fiduciary' relationship, what are the agent's obligations to
the principal (aka Client)?
The legal power or right given by a principal, and accepted by the agent, to act on
the principal's behalf in business transactions with a third party, and is typically
analyzed in terms of actual and implied authorities. - answer-Define 'Authority' in
legal terms
A seller gives the brokerage authority to offer their property for sale. - answer-What
is an example of 'Actual Authority'?
The brokerage will determine the best marketing methods to offer the property for
sale (not specified in detail in the contract but allows the agent to get the job done
properly). - answer-What is an example of 'Implied Authority'?
1, Explaining Services Available to a
Seller or Buyer Exam Questions and
Answers
The relationship between two parties in which one party (the agent) accepts
responsibility for representing the other party (the principal) in dealing with a third
party. - answer-Under Ontario law, how is an 'agency relationship' defined?
Client & Customer - answer-While common law uses the terms 'Principal' and 'Third
Party', what terms does REBBA use instead?
The Common Law of Agency - answer-The underlying relationship of the brokerage,
salesperson, seller and buyer is based on what?
Someone who is not directly connected with a legal transaction but may be affected
by it, OR supporting one of the people involved, i.e. lawyer, home inspector, etc. -
answer-In relation to a contract, how is a third party defined?
Representation - answer-Under REBBA, what is the equivalent for the legislative
term for "agency"?
The brokerage - answer-In a real estate transaction, who is the 'Agent'?
A seller or buyer - answer-In a real estate transaction, who is usually the 'Principal'?
Representation - answer-Agency is also known as ...
Representation Agreement - answer-A Listing (Seller Agency) Agreement / Buyer
Agency Agreement is also known as ...
Agreement (Conveyance of Interest in Real Estate) - answer-Agreement of Purchase
and Sale is also know as ...
Multiple Representation - answer-Dual Agency is also known as ...
Convey Offer - answer-Present Offer is also known as ...
Acquisition / Divestiture by Registrant - answer-Purchase / Sale by Registrant
The seller and buyer - answer-Who are the 'Parties' to a real estate transaction?
Employee / Employer relationship with authorization to trade on behalf of their
respective brokerages. - answer-What type of relationship does a salesperson have
with their brokerage from a legal perspective?
, Yes. Everyone must protect the client's best interests. - answer-Once an agency
relationship is established between a brokerage and a client, does the agreement
apply to all brokers & salespersons employed by the brokerage?
The agent who is authorized to trade in real estate on behalf of others. - answer-
Define 'Brokerage' according to REBBA
Client - answer-Principal is also known as ...
Someone who authorizes an agent to act on their behalf in an agency relationship,
and provides information and lawful instructions to the agent regarding the
transaction. - answer-What is a 'Principal'?
The seller - answer-When a brokerage represents a seller when listing a property,
who is the 'Principal'?
The buyer - answer-When a brokerage represents a buyer when showing properties
for sale, who is the 'Principal'?
Customer - answer-What is the comparable term to 'Third Party' under REBBA?
Third Party - answer-A brokerage representing only a seller would consider a buyer
as a _________ or a customer?
A relationship of trust with one or more parties. - answer-What does 'Fiduciary' refer
to in relation to a Representation Agreement?
Fiduciary - answer-An agent (brokerage) as a __________ has the legal obligation to
act in the principal's (seller's or buyer's) best interests.
- Full disclosure (of all facts known)
- Obedience (obey the lawful instructions of the principal)
- Confidentiality (all info that is confidential will not be disclosed)
- Competence (provide all services competently)
- Accounting (responsible handling of all documents and funds related to the
transaction) - answer-In a 'Fiduciary' relationship, what are the agent's obligations to
the principal (aka Client)?
The legal power or right given by a principal, and accepted by the agent, to act on
the principal's behalf in business transactions with a third party, and is typically
analyzed in terms of actual and implied authorities. - answer-Define 'Authority' in
legal terms
A seller gives the brokerage authority to offer their property for sale. - answer-What
is an example of 'Actual Authority'?
The brokerage will determine the best marketing methods to offer the property for
sale (not specified in detail in the contract but allows the agent to get the job done
properly). - answer-What is an example of 'Implied Authority'?
