Humber/Ontario Real Estate Course 1 Exam 2026 – 400 Free Practice Questions to Pass the Exam

The term 'three-way relationship' in real estate primarily refers to the agency relationship involving brokerages, brokers, and salespersons. This concept is important because it highlights the collaborative dynamics and responsibilities among the key players within the real estate industry.

In this relationship, brokerages serve as the umbrella organizations that oversee the activities of brokers and salespersons. Brokers are typically licensed professionals who can operate independently and manage a brokerage, while salespersons work under the supervision of brokers. This tripartite structure allows for a more organized flow of responsibilities, communication, and accountability among all parties involved in real estate transactions.

Understanding this relationship is crucial for real estate professionals as it outlines the hierarchy and the expected duties each party has towards clients and one another. This clarity helps ensure that clients receive adequate representation and support throughout the buying or selling process.

Other options refer to different dynamics in the real estate sector but do not encapsulate the specific agency relationship involving brokerages, brokers, and salespersons as accurately as this choice.