Humber/Ontario Real Estate Course 3 Exam Practice

Broker of Record Simmons reviews the representation status of buyers and sellers. What is accurate?

1. Buyers' interests aren't protected by the brokerage

2. Buyers' interests are protected if they sign customer service agreements

3. Buyers must insert an email in the Notices section

4. Confirmation shows listing brokerage in a multi-representation scenario

5. Only seller's interests are managed by the brokerage

6. Buyers must provide residential proof

The correct answer is: Buyers' interests aren't protected by the brokerage

The correct choice reflects the fundamental principle that, without a formal representation agreement, a buyer may not have their interests adequately protected by a brokerage. In real estate, representation plays a crucial role in ensuring that buyers receive guidance, advocacy, and fiduciary responsibility from their agents. When buyers do not sign an agreement that formally establishes a representative-client relationship, they may not receive the full range of services and protections that come with that relationship. This understanding emphasizes the importance of having a signed agreement that specifies the terms of representation. The protection of buyers' interests hinges on this formal acknowledgment, which establishes the agent's duty to act in the buyer's best interest. Hence, when buyers do not engage in such agreements, their interests may not receive the same level of care and advocacy, which aligns with the correctness of the given answer.