Humber/Ontario Real Estate Course 3 Exam Practice

What is true about the agency relationship in real estate?

1. The terms 'single agency' and 'single representation' indicate two different relationships

2. The agent must maintain the seller's confidentiality even after the seller representation agreement expires

3. The agent must obey the seller's instructions both during the currency of the seller representation agreement and after it expires

4. The agent can disclose seller information after the agreement expires

5. The agent's fiduciary duties end immediately with the expiration of the seller representation agreement

6. The agent can take a conflicting client immediately after the current agreement expires

The correct answer is: The agent must maintain the seller's confidentiality even after the seller representation agreement expires

The choice highlighting that the agent must maintain the seller's confidentiality even after the seller representation agreement expires is correct because the obligation to protect a client's confidential information is a fundamental aspect of the fiduciary duty that agents owe to their clients. This duty continues beyond the termination of the agency relationship, ensuring that sensitive information shared in trust remains confidential. This principle is grounded in ethical standards and legal guidelines that govern real estate practices, which emphasize the importance of maintaining privacy for clients irrespective of the status of the contractual agreement. In real estate, the nature of confidentiality is critical, as agents often have access to privileged information that, if disclosed after the agency ends, could harm the client's interests or competitive position. Maintaining confidentiality serves to build trust, uphold professional integrity, and ensure compliance with industry regulations.