Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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Which of the following is an instance where an agency authority terminates by mutual agreement or expiration?

When a buyer's offer has been accepted by the seller client of a brokerage.
When the seller suddenly cancels the authority given to the brokerage.
When the buyer client and the brokerage agree to cancel a buyer representation agreement.
When a sale closes and the buyer takes possession of the property.

The correct answer is: When the buyer client and the brokerage agree to cancel a buyer representation agreement.

Option C is the correct answer because it describes a situation where an agency authority terminates by mutual agreement. When the buyer client and the brokerage agree to cancel a buyer representation agreement, it is a mutual decision to end the agency relationship. This termination is by mutual agreement and does not involve one party unilaterally canceling the authority given to the brokerage, as described in option B. Option A refers to the acceptance of an offer by the seller client, which is a step in the transaction process but does not imply the termination of the agency relationship. Option D describes the closing of a sale and the buyer taking possession of the property, which indicates the completion of the transaction but does not necessarily terminate the agency authority by mutual agreement or expiration.