Humber/Ontario Real Estate Course 3 Exam Practice

In this scenario, option C is the correct answer because it correctly outlines how the brokerages are operating. When a salesperson from ABC Realty Inc. is working with a buyer client for a property listed by another brokerage, ABC Realty Inc. represents the buyer in the transaction. They owe duties to the buyer and have limited responsibilities towards the seller. This arrangement is known as buyer representation, where ABC Realty Inc. works in the best interests of the buyer they are representing.

Options A, B, and D are incorrect because they do not accurately reflect the roles and responsibilities of the brokerages in this specific scenario. Option A suggests that both brokerages represent the seller, which is not the case when ABC Realty Inc. is representing the buyer. Option B mentions acting as a sub-agent with duties to both the buyer and the seller, whereas in this scenario, ABC Realty Inc. is directly representing the buyer. Option D refers to the listing brokerage having multiple representations with fiduciary duties to both parties, but the scenario described focuses on the buyer's representation by ABC Realty Inc., not the listing brokerage's duties.