Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following is NOT true regarding the services provided to customers in a real estate transaction?

1. A brokerage has greater obligations when providing services to a customer than to a client.

2. A brokerage must avoid misrepresentation when dealing with a customer.

3. A brokerage needs to exercise due care when serving a customer.

4. Customer service obligations apply to both buyers and sellers.

5. The brokerage must provide honest and competent service but no fiduciary duties are owed to customers.

6. The brokerage's primary responsibility is to their client, not the customer.

The correct answer is: A brokerage has greater obligations when providing services to a customer than to a client.

Option A is not true because a brokerage actually has greater obligations when providing services to a client compared to a customer. When acting as a client's representative, a brokerage owes fiduciary duties to the client, including loyalty, confidentiality, full disclosure, obedience, reasonable care, diligence, and accounting. On the other hand, when serving a customer, the brokerage is still required to provide honest and competent service, but no fiduciary duties are owed. It is essential to differentiate between the higher standard of care and responsibilities owed to a client versus the more limited obligations owed to a customer in a real estate transaction.