Real Estate Council of Alberta Fundamentals Practice Exam

Disputes can arise from which of the following?

1. Only assumptions made by managers

2. Commissions, assumptions, and omissions

3. Only actions taken by employees

4. Direct complaints from clients

The correct answer is: Commissions, assumptions, and omissions

Disputes in real estate transactions can arise from a variety of factors, and the correct answer encompasses several key areas: commissions, assumptions, and omissions. Commissions are a source of contention as they involve financial agreements between parties, such as agents and their clients, and misunderstandings or disagreements regarding the terms can lead to disputes. Assumptions refer to expectations or beliefs that may not align with reality, particularly in transactions where the behavior or actions of parties involved are based on those assumptions. For example, if a buyer assumes certain features or conditions about a property that are not explicitly stated, disagreements can emerge. Omissions involve the failure to disclose important information that impacts a transaction. If a seller or agent neglects to inform a buyer about critical details, it can lead to disputes surrounding trust and accountability. In contrast, while disputes can stem from direct complaints from clients, limiting the causes to only that scenario overlooks the broader context of how financial misunderstandings and miscommunications can also trigger conflicts. Similarly, focusing solely on assumptions made by managers or actions taken by employees does not fully capture the complexity of disputes in the real estate sector. Thus, the selection that includes commissions, assumptions, and omissions provides a more comprehensive view of potential sources of conflict