Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT an obligation of a buyer representation agreement?

1. Assist in negotiations involving specific properties

2. Negotiate the highest possible price for the buyer

3. Disclose material facts known to the brokerage

4. Assist with mortgage financing and home inspection

5. Submit offers promptly

6. Provide market analysis reports

The correct answer is: Negotiate the highest possible price for the buyer

A buyer representation agreement is a legal contract between a real estate agent and a buyer outlining the terms and conditions of their working relationship. It is usually a written document that binds the buyer to work exclusively with that agent to find a property. Option B, negotiating the highest possible price for the buyer, is NOT an obligation of a buyer representation agreement. This is because the agent's goal is to find the best possible deal for the buyer, not to negotiate for the highest price. The agent should use their knowledge and expertise to help the buyer secure a fair and reasonable price for the property. Options A, C, D, E, and F are all obligations of a buyer representation agreement. The agent is required to assist with negotiations, disclose material facts about the property, assist with mortgage financing and home inspections, submit offers promptly, and provide market analysis reports to the buyer. These are all important tasks that help the buyer make informed decisions and navigate the home buying process smoothly. Therefore, option B is the correct answer as it goes against the main purpose of a buyer representation agreement, which is to protect and serve the best interests of the buyer.