Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our practice quizzes. Study using multiple-choice questions complete with hints and explanations. Ace your exam with confidence!

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Who is the principal in a seller agency relationship?

The salesperson employed by the co-operating brokerage.
The salesperson who lists the seller's property.
The seller of the property who is represented by a brokerage.
The client of a co-operating brokerage who is buying the property.
A renter represented by a property management firm.
A tenant in a lease-to-own agreement.

The correct answer is: The seller of the property who is represented by a brokerage.

In a seller agency relationship, the principal refers to the party that the agent (in this case, the brokerage and its salesperson) represents. In this context, the seller of the property occupies the role of the principal. They engage the services of a brokerage to assist in the sale of their property, thereby establishing a fiduciary relationship where the brokerage is obligated to act in the best interests of the seller. This relationship is defined by trust and loyalty, where the salesperson represents the seller's interests throughout the transaction process. The seller is the individual who ultimately has the authority and decision-making power regarding the property being sold, making them the principal in the agency relationship. Other roles mentioned, such as the salesperson listing the property or those in the process of buying or renting, do not define the principal in this context. These roles might involve representation but do not establish the same agency responsibility that exists between a seller and their representing brokerage.