Humber Real Estate - Course 2, Module 1, Explaining Services Available to a Seller or Buyer with complete solution
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Humber Real Estate
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Humber Real Estate
Humber Real Estate - Course 2, Module 1, Explaining Services Available to a Seller or Buyer with complete solution
The relationship between two parties in which one party (the agent) accepts responsibility for representing the other party (the principal) in dealing with a third party.
Under Ont...
Humber Real Estate - Course 2, Module 1, Explaining
Services Available to a Seller or Buyer with complete
solution
The relationship between two parties in which one party (the agent) accepts
responsibility for representing the other party (the principal) in dealing with a
third party.
Under Ontario law, how is an 'agency relationship' defined?
Client & Customer
While common law uses the terms 'Principal' and 'Third Party', what terms does REBBA
use instead?
The Common Law of Agency
The underlying relationship of the brokerage, salesperson, seller and buyer is based on
what?
Someone who is not directly connected with a legal transaction but may be
affected by it, OR supporting one of the people involved, i.e. lawyer, home
inspector, etc.
In relation to a contract, how is a third party defined?
Representation
Under REBBA, what is the equivalent for the legislative term for "agency"?
The brokerage
In a real estate transaction, who is the 'Agent'?
A seller or buyer
In a real estate transaction, who is usually the 'Principal'?
Representation
Agency is also known as ...
Representation Agreement
A Listing (Seller Agency) Agreement / Buyer Agency Agreement is also known as ...
Agreement (Conveyance of Interest in Real Estate)
Agreement of Purchase and Sale is also know as ...
Multiple Representation
Dual Agency is also known as ...
Convey Offer
Present Offer is also known as ...
Acquisition / Divestiture by Registrant
Purchase / Sale by Registrant
The seller and buyer
Who are the 'Parties' to a real estate transaction?
Employee / Employer relationship with authorization to trade on behalf of their
respective brokerages.
What type of relationship does a salesperson have with their brokerage from a legal
perspective?
Yes. Everyone must protect the client's best interests.
Once an agency relationship is established between a brokerage and a client, does the
agreement apply to all brokers & salespersons employed by the brokerage?
, The agent who is authorized to trade in real estate on behalf of others.
Define 'Brokerage' according to REBBA
Client
Principal is also known as ...
Someone who authorizes an agent to act on their behalf in an agency
relationship, and provides information and lawful instructions to the agent
regarding the transaction.
What is a 'Principal'?
The seller
When a brokerage represents a seller when listing a property, who is the 'Principal'?
The buyer
When a brokerage represents a buyer when showing properties for sale, who is the
'Principal'?
Customer
What is the comparable term to 'Third Party' under REBBA?
Third Party
A brokerage representing only a seller would consider a buyer as a _________ or a
customer?
A relationship of trust with one or more parties.
What does 'Fiduciary' refer to in relation to a Representation Agreement?
Fiduciary
An agent (brokerage) as a __________ has the legal obligation to act in the principal's
(seller's or buyer's) best interests.
- Full disclosure (of all facts known)
- Obedience (obey the lawful instructions of the principal)
- Confidentiality (all info that is confidential will not be disclosed)
- Competence (provide all services competently)
- Accounting (responsible handling of all documents and funds related to the
transaction)
In a 'Fiduciary' relationship, what are the agent's obligations to the principal (aka
Client)?
The legal power or right given by a principal, and accepted by the agent, to act on
the principal's behalf in business transactions with a third party, and is typically
analyzed in terms of actual and implied authorities.
Define 'Authority' in legal terms
A seller gives the brokerage authority to offer their property for sale.
What is an example of 'Actual Authority'?
The brokerage will determine the best marketing methods to offer the property for
sale (not specified in detail in the contract but allows the agent to get the job
done properly).
What is an example of 'Implied Authority'?
Single Representation
Under REBBA, what is 'Single Agency' called?
There is one agent (brokerage) representing one principal (seller or buyer) within
a transaction with a third party.
Define a 'Single Agency' relationship
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