Humber/Ontario Real Estate Course 3 Exam Practice

What type of relationship does a buyer representation agreement establish?

1. A legally binding contract between buyers and agents

2. An exclusive relationship with a buyer client

3. A financial obligation from the seller to the buyer

4. A temporary agreement with no specific duties

5. An officiated meeting with a real estate board

6. A non-exclusive buyer agreement

The correct answer is: An exclusive relationship with a buyer client

A buyer representation agreement establishes an exclusive relationship with a buyer client. This type of agreement creates a committed partnership where the real estate agent is tasked with representing the buyer’s best interests throughout the home-buying process. By creating an exclusive relationship, the buyer is typically bound to work only with that agent for a specified period during which the agent is expected to provide a range of services, including negotiating on behalf of the buyer and helping them find suitable properties. This exclusivity not only helps in fostering a strong working relationship but also allows the agent to devote the necessary time and resources to adequately represent the buyer. It reinforces the agent's obligation to act in the best interest of the client and to provide a level of service that might not be guaranteed in a non-exclusive agreement. In such arrangements, the expectations for both parties are clearly outlined, strengthening the trust and professionalism inherent in the real estate transaction process.