Humber/Ontario Real Estate Course 3 Exam Practice

Who holds the responsibility in a buyer representation agreement?

1. The buyer's lawyer

2. The property seller

3. The real estate brokerage

4. The mortgage lender

5. The government authority

6. A third-party inspector

The correct answer is: The real estate brokerage

The correct choice is the real estate brokerage because, under a buyer representation agreement, the brokerage has a fiduciary duty to represent the buyer's interests in a real estate transaction. This includes various responsibilities such as providing advice, negotiating offers, and assisting with the overall buying process. The brokerage must act in the best interest of the buyer, ensuring that their needs are prioritized throughout the transaction. The role of the buyer's lawyer is typically to provide legal advice and assist with closing the transaction but not to act as the primary representative in the negotiations. The property seller is on the opposite side of the transaction and seeks to protect their interests, while the mortgage lender primarily provides financing options for the buyer. Government authorities are involved in regulation and property transactions but do not represent individual buyers in agreements. Lastly, a third-party inspector may assess the property condition but does not have the responsibility to represent the buyer in the context of a buyer representation agreement.