Humber/Ontario Real Estate Course 3 Exam Practice

In REBBA, the term 'representation' is generally analogous to what?

1. A non-agency relationship.

2. A specific requirement for seller agreements only.

3. Any real estate contract that excludes buyers.

4. Handling only listing agreements between brokers.

5. Agency, implying a fiduciary relationship.

6. A simplified term for standard business agreements.

The correct answer is: Agency, implying a fiduciary relationship.

The correct answer is that 'representation' in REBBA (Real Estate and Business Brokers Act) is analogous to agency, which involves a fiduciary relationship. In real estate, representation typically refers to the relationship where a broker or salesperson acts on behalf of a client, whether that client is a buyer or a seller. This relationship establishes a legal and ethical duty to act in the best interest of the client, which is a hallmark of fiduciary relationships. When a real estate professional represents a client, they must prioritize that client's interests above their own and provide loyalty, full disclosure, and confidentiality. This aligns with the principles of agency law, where one party (the agent) is authorized to act on behalf of another party (the principal). This understanding of 'representation' is fundamental in real estate transactions to ensure trust and accountability within the industry. The other provided options do not capture the essence of the type of relationship intended by 'representation.' For instance, a non-agency relationship does not involve the responsibilities characteristic of a fiduciary duty. The idea of a specific requirement for seller agreements only limits the interpretation of representation, as it applies to both buyers and sellers. Contracts that exclude buyers do not represent the broader implications of agency, while handling only listing