Humber/Ontario Real Estate Course 3 Exam Practice

What priority does ACME Network Systems Inc. have when represented by a salesperson to find a new commercial building site?

1. ACME owes no duty to the prospective buyers.

2. ACME must sign a dual representation agreement with the possible site owners.

3. The salesperson owes fiduciary obligations to ACME Network Systems Inc.

4. The site owners owe duty of care to ACME Network Systems Inc.

5. The site owners must sign a buyer representation agreement.

The correct answer is: The salesperson owes fiduciary obligations to ACME Network Systems Inc.

The correct answer is that the salesperson owes fiduciary obligations to ACME Network Systems Inc. This means that the salesperson has a legal and ethical responsibility to act in the best interests of ACME Network Systems. Fiduciary duties involve loyalty, confidentiality, full disclosure, and accounting for any profits arising from the relationship. Given that ACME is the party being represented, the salesperson is bound to prioritize their interests, ensuring that any advice or actions taken will benefit ACME first and foremost. In commercial real estate transactions, these fiduciary obligations are critical because they help establish trust and protect the client’s interests throughout the process of finding a suitable property. The salesperson must navigate potential conflicts of interest and treat ACME’s information with utmost confidentiality. The other options address various responsibilities and agreements that might exist but do not reflect the core of the fiduciary relationship established between an agent and a client. For example, while it may be true that ACME does not owe duties to prospective buyers, or that site owners might have certain responsibilities, these do not define the central obligation that the salesperson has to ACME. Thus, understanding fiduciary duties is crucial for recognizing the primary focus of the salesperson's role in this scenario.