Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT a general obligation of a real estate brokerage to a client in an agency relationship?

1. Delegate responsibilities to others.

2. Exercise skill and care.

3. Negotiate favourable terms.

4. Perform mandate.

5. Ensure transparency in the transaction.

6. Maintain confidentiality of client information.

The correct answer is: Delegate responsibilities to others.

In an agency relationship within real estate, a brokerage has several key responsibilities towards its client. The obligations include exercising skill and care, negotiating favorable terms on behalf of the client, performing the mandate as agreed upon, ensuring transparency throughout the transaction, and maintaining confidentiality of client information. The concept of delegating responsibilities to others does not align with the core obligations of a brokerage to its client. In fact, the brokerage is expected to represent the client’s interests personally and cannot simply transfer the responsibilities of their role to others. This means the brokerage must actively engage in the process and cannot delegate the fundamental aspects of their duty to someone else without risking a breach of fiduciary duty. Thus, the correct answer is the option that describes a potential action that would deviate from the brokerage's commitment to direct representation and responsibility towards the client.