Humber/Ontario Real Estate Course 1 Exam Practice

To whom does a real estate professional owe the duty of best interests?

1. Client.

2. Customer.

3. Third-party observer.

4. Government regulatory authority.

The correct answer is: Client.

A real estate professional owes the duty of best interests primarily to their client. This fiduciary duty involves putting the client's needs and interests ahead of their own and ensuring that they provide loyal and diligent service. The relationship is built on trust and confidentiality, where the professional is expected to navigate the complexities of real estate transactions while protecting the client's best interests. The essence of this duty reflects the ethical obligations inherent in client relationships, emphasizing that the professional should advocate for the client's goals and work to achieve the best possible outcomes for them. This includes providing accurate advice, acting in good faith, and disclosing all relevant information that may affect the client’s decisions. Other parties, such as customers, third-party observers, or government regulatory authorities, do not have the same fiduciary relationship with the real estate professional. Customers, while recipients of information and services, do not have the same legal rights as clients, and third-party observers are not part of the professional's obligation to prioritize. Government regulatory authorities oversee compliance and practices but do not have a personal interest in the transactions that would create a duty of best interests.