Humber/Ontario Real Estate Course 4 Exam Practice

If a real estate brokerage has a signed representation agreement with a seller, this means the brokerage:

1. Has entered a co-representation arrangement

2. Has established a single representation arrangement with the seller

3. Is acting as the co-operating brokerage

4. Cannot have an agreement with any prospective buyer for that seller’s property

5. Is representing both the seller and buyer in a dual arrangement

6. Is forbidden from entering any further agreements

The correct answer is: Has established a single representation arrangement with the seller

If a real estate brokerage has a signed representation agreement with a seller, it means that the brokerage has established a single representation arrangement with the seller. This type of agreement outlines the terms and conditions under which the brokerage will represent the seller in the sale of their property. It indicates that the brokerage has a fiduciary duty to act in the best interests of the seller throughout the real estate transaction. Option A is incorrect because a co-representation arrangement would involve two separate brokerages representing the seller, which is not the case described in the question. Option C is incorrect as the brokerage with the signed representation agreement is not acting as the cooperating brokerage but rather as the primary representative for the seller. Option D is incorrect since the brokerage can still have agreements with prospective buyers interested in the seller's property, even though their primary representation is with the seller. Option E is incorrect because representing both the seller and the buyer in a dual agency arrangement would require specific consent from both parties, which is not mentioned in the scenario. Option F is incorrect as there are no restrictions mentioned about the brokerage entering into further agreements beyond the signed representation agreement with the seller.