Ontario Real Estate Licensing Exam Practice · Question
A salesperson, Kevin, receives an offer on his client's property in Markham. The offer includes a clause stating that the buyer will pay the commission for Kevin, thereby making Kevin's client, the seller, a self-represented party. What is Kevin's responsibility under TRESA in this scenario?
Even if third-party remuneration is involved, a registrant's relationship with their client, including their duties, remains paramount. If there's no representa
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Question: A salesperson, Kevin, receives an offer on his client's property in Markham. The offer includes a clause stating that the buyer will pay the commission for Kevin, thereby making Kevin's client, the seller, a self-represented party. What is Kevin's responsibility under TRESA in this scenario?
Answer options: ✅ Kevin must clarify with his client that he still owes fiduciary duties to them as a client, even if the buyer is compensating him, and ensure the client understands their status as a self-represented party if there's no representation agreement.
- Kevin can accept this arrangement as long as the seller is aware of the commission payment structure.
- Kevin must refuse the offer as it attempts to circumvent the standard commission payment structure.
- Kevin must immediately advise his client to seek independent legal advice as the offer's terms are unusual.
Correct answer: Kevin must clarify with his client that he still owes fiduciary duties to them as a client, even if the buyer is compensating him, and ensure the client understands their status as a self-represented party if there's no representation agreement.
Explanation: Even if third-party remuneration is involved, a registrant's relationship with their client, including their duties, remains paramount. If there's no representation agreement, the client is a self-represented party, requiring clarification of roles and duties as per TRESA's self-represented party provisions.
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