Humber/Ontario Real Estate Course 2 Exam Practice

What describes a customer of a brokerage?

1. A customer is also known as a principal.

2. A customer can be a client of another brokerage.

3. A customer is represented by that brokerage.

4. A customer has an agency relationship with the brokerage.

5. A customer is someone who signs a listing agreement.

6. A customer is never a principal party in the transaction.

The correct answer is: A customer can be a client of another brokerage.

A customer of a brokerage is someone who is not represented by that brokerage but may be working with or seeking information from the brokerage. In real estate, customers do not have an agency relationship with the brokerage, unlike clients. Instead, customers are typically individuals who may be looking to buy or sell a property but have not engaged the services of the brokerage as their representative. Option B is correct because it accurately describes that a customer of a brokerage can still be a client of another brokerage, indicating that the customer is not exclusively tied to one brokerage for real estate services.