Humber Real Estate - Course 2, Module 2, Documenting Relationships with
Sellers and Buyers (Questions and Answers)
What 4 things must be specified on both representation and customer service agreements? -
✔️✔️- The effective date and expiry date of the agreement (can only be one expiry date)
- The method for calculating commission or other remuneration payable to the brokerage (in
the case of a seller, the amount payable)
- How the commission or other remuneration will be paid
- The services that the brokerage will provide under the agreement
If the term of a representation or customer service agreement is more than 6 months, what
must be prominently displayed on the first page, and requires an initial by the seller/buyer? -
✔️✔️The expiry date
If two sellers sign one representation agreement, is it acceptable to present them with one
copy of the signed document, if they sign in person at the same time? - ✔️✔️No. Each seller
must receive their own individual copy of the signed listing agreement.
Under REBBA, when might specific conditions allow remuneration to be paid without a
written agreement? - ✔️✔️- A salesperson has conveyed a written offer that is accepted by the
seller
- A salesperson shows a property to the buyer, who subsequently purchases the property
- The salesperson introduces the seller and the buyer, for the purpose of discussing the
acquisition or disposition of an interest in real estate
In what situations would the salesperson need to disclose the nature of the relationship to
both the buyer and seller? - ✔️✔️- The brokerage is representing both the seller and the buyer
in the same transaction (i.e. both the seller and the buyer are clients)
- The brokerage is representing the seller as a client and is providing services to the buyer as
a customer in the same transaction
- The brokerage is representing the buyer as a client and is providing services to the seller as
a customer in the same transaction
If a home is locked up properly after an open house, and then is broken into, is the brokerage
liable for the damages? - ✔️✔️No. The seller agrees in their representation agreement to
indemnify the brokerage in case of damage, theft, vandalism or fire that may occur during the
marketing process, providing the brokerage is not behaving negligently in carrying out its
duties.
If a buyer agrees the brokerage should received a commission of 2.5% of the sale price of
any property purchased during the term of their agreement, and the seller is providing 1.5%
commission, how much commission will the buyer's brokerage make? - ✔️✔️2.5% as agreed
to in the buyer representation agreement. (Seller pays 1.5% and buyer pays the additional
1%)
What types of listings are there? - ✔️✔️- Exclusive with one brokerage
- Placed on a listing service inviting co-operation from other brokerages
- Open listing
Define an 'Exclusive Listing' - ✔️✔️The seller gives the sole right to market and sell their
property to one brokerage. The brokerage is authorized by the seller to sell their property
during the time specified in the agreement and on the terms agreed to.
Note: Only the brokerage with whom a seller has signed an exclusive agreement is
authorized to show the property to potential buyers, and the property wouldn't be advertised
on a listing service.
Why would a seller choose an 'Exclusive Listing' with a brokerage? - ✔️✔️Because the seller
has given specific instructions regarding the showing of the property that the brokerage must
follow. For example, pre-qualifying potential buyers for high-end properties, ensuring
privacy and tighter control over who is shown the property (i.e. no nosy neighbours wanted).
What is a potential major issue when a seller considers an 'Exclusive Listing'? - ✔️✔️By
restricting the authority to sell the property to the listing brokerage, buyers working with
other brokerages may not know of the property's availability and miss the opportunity to
view and purchase the property.
Define a listing via 'Listing Service' - ✔️✔️The most common form of listing; the property is
placed on a listing service (i.e. MLS) and the authority to list is granted to only one
brokerage, however, the seller permits the listing brokerage to co-operate with other
brokerages in the sale of the property.
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