Skip to main content

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

Start free practice for Ontario Real Estate Licensing Exam Practice

363 questions · no signup required · 40 free questions per day

Start 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?

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.

Start free practice for Ontario Real Estate Licensing Exam Practice

363 questions · no signup required · 40 free questions per day

Start Practice →

More about Ontario Real Estate Licensing Exam Practice

Related Questions

More for Ontario Real Estate Licensing Exam Practice candidates

Ready to practice?

Free, no signup required. Build a wrong-question list as you go.

Start Free Ontario Real Estate Licensing Exam Practice Practice →

Related courses

Other Canadian certifications candidates often prepare for alongside this one.