Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following correctly describes the obligation of a brokerage regarding outlined services to customers versus clients?

1. Buyers and sellers must be informed if the brokerage represents multiple clients in the same transaction.

2. Service alternatives must be acknowledged in writing by the buyer or seller.

3. A brokerage must outline the restricted nature of services provided to customers versus clients.

4. Information provided promptly includes alternatives available for services.

5. Specific timeframes for service delivery must be disclosed.

6. Market analyses must be shared with clients before transactions.

The correct answer is: A brokerage must outline the restricted nature of services provided to customers versus clients.

The correct answer highlights the importance of understanding the distinction between services offered to customers and those provided to clients. A brokerage has an obligation to clearly outline the nature of services available; this is crucial because it underscores the differences in the level of representation and the duties owed to each party. When a brokerage works with clients, they have a fiduciary duty which includes loyalty, full disclosure, and safeguarding the client's interests. On the other hand, customers do not receive the same level of representation, and their services are more limited. By outlining these restrictions, the brokerage ensures that both customers and clients are aware of what to expect in terms of representation and the scope of services provided, allowing for informed decision-making. This clarity helps to foster trust and transparency in the real estate transaction process, as clients and customers are made aware of their rights and the brokerage's responsibilities.