Humber/Ontario Real Estate Course 3 Exam Practice

What is the purpose of a buyer representation agreement?

1. To detail the buyer's financial qualification.

2. To outline the duties and obligations of the representing salesperson.

3. To provide a legal description of the property.

4. To confirm the seller's disclosure obligations.

The correct answer is: To outline the duties and obligations of the representing salesperson.

The purpose of a buyer representation agreement is primarily to outline the duties and obligations of the representing salesperson. This legal document creates a formal relationship between the buyer and the real estate agent, ensuring that the agent acts in the best interest of the buyer throughout the process of purchasing a property. It specifies the scope of services that the agent will provide, including tasks like finding suitable properties, negotiating offers, and guiding the buyer through the transaction. This agreement also establishes expectations regarding communication and the level of service the buyer can anticipate, as well as any potential fees that may be involved. By clearly defining these responsibilities, the buyer representation agreement fosters trust and accountability in the agent-client relationship, ensuring that both parties understand their roles. The other options address aspects that are not the primary focus of the buyer representation agreement. For instance, financial qualification is more about the buyer's capability and does not directly involve the agreement's purpose; the legal description of a property typically comes into play during the purchase agreement and not the buyer representation agreement; and seller's disclosure obligations are related to what the seller must disclose to prospective buyers, which is outside the scope of what a buyer representation agreement aims to cover.