Humber/Ontario Real Estate Course 4 Exam Practice

When a seller engages a salesperson to discuss marketing their property and signs a representation agreement, this situation indicates:

1. The brokerage acts as a middleman

2. The salesperson acts as a middleman

3. The salesperson is the seller’s agent

4. The seller has defined duties to the agent

5. The seller is obligated to follow all agent advice

6. The brokerage is not legally binding to the seller

The correct answer is: The salesperson is the seller’s agent

The identification of the situation where a seller engages a salesperson to discuss marketing their property and subsequently signs a representation agreement indicates that the salesperson is acting as the seller's agent. This relationship is established through the representation agreement, which formalizes the duties and obligations of the salesperson to represent the seller's interests in the transaction. By becoming the seller's agent, the salesperson takes on the responsibility of advocating for the seller, providing guidance, and using their expertise to market the property effectively. This includes offering advice on pricing, staging, and negotiating on behalf of the seller when offers come in. The representation agreement typically outlines the scope of the agent's responsibilities and confirms the trust placed by the seller in the salesperson's abilities. In this context, it’s essential to understand the roles and responsibilities involved when a representation agreement is signed. This ensures that the seller is aware of the professional assistance they are receiving and conveys their expectations for how the property will be handled in the marketplace.