Humber/Ontario Real Estate Course 3 Exam Practice

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Seller Thornton is interested in selling his home. After briefly meeting with a salesperson, he allows access to the property, provides information about it (which has been included in an unsigned seller representation), and allows the salesperson to show the property. As such:

  1. An Agency Relationship Has Not Been Established, as a Seller Representation Agreement Has Not Been Signed

  2. The Seller Has Entered into a Seller Representation Agreement with the Salesperson's Brokerage

  3. The Salesperson May Have Created an Implied Agency Relationship Between the Employing Brokerage and the Seller

  4. The Salesperson's Employing Brokerage Is Best Described as a Third Party

  5. The Seller Is Obligated to Sign an Agreement Before Any Showings

  6. The Seller Must Pay a Commission Regardless of the Sale

The correct answer is: The Salesperson May Have Created an Implied Agency Relationship Between the Employing Brokerage and the Seller

In this scenario, the correct answer is C. The salesperson may have created an implied agency relationship between the employing brokerage and the seller. This is because, even though a seller representation agreement has not been signed, the actions of the salesperson (gaining access to the property, obtaining information about it, and showing it) could imply that an agency relationship exists between the salesperson's brokerage and the seller. Implied agency can arise from the conduct of the parties involved, and in this case, the actions taken by the salesperson indicate a level of representation and responsibility towards the seller, potentially creating an implied agency relationship. Options A, B, D, E, and F are incorrect: A. An Agency Relationship Has Not Been Established, as a Seller Representation Agreement Has Not Been Signed - While a formal seller representation agreement is a common way to establish an agency relationship, as mentioned earlier, actions and conduct can also lead to an implied agency relationship. B. The Seller Has Entered into a Seller Representation Agreement with the Salesperson's Brokerage - This cannot be confirmed without a signed seller representation agreement. D. The Salesperson's Employing Brokerage Is Best Described as a Third Party - In real estate transactions, the brokerage represents the

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