Humber/Ontario Real Estate Course 3 Exam Practice

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According to the REBBA Code of Ethics, which of the following is NOT a minimum requirement for seller representation agreements?

  1. The agreement must be initialed by the seller if it exceeds eight months.

  2. The agreement must contain an effective date and a termination date.

  3. The agreement must detail services provided by the brokerage.

  4. The remuneration payable to the brokerage and amount payable to a co-operating brokerage must be noted.

  5. The seller must acknowledge receipt of all terms and conditions.

  6. The agreed-upon listing price must be included in the agreement.

The correct answer is: The agreement must be initialed by the seller if it exceeds eight months.

The assertion regarding the agreement needing to be initialed by the seller if it exceeds eight months inaccurately reflects the minimum requirements set forth in the REBBA Code of Ethics. While the Code does require that a seller representation agreement be clear and comprehensively outline the terms of the engagement, there is no specific mandate stating that the seller must initial the document when the duration exceeds eight months. Other components of the agreement play critical roles in ensuring transparency and clarity in the representation relationship. For instance, including an effective date and a termination date is essential as it defines the timeframe within which the brokerage is authorized to represent the seller. Furthermore, detailing the services provided by the brokerage ensures that the seller understands what they can expect in terms of support and representation throughout the process. Additionally, the remuneration details are crucial as they prevent misunderstandings about the costs involved for the seller, including how much will be paid to the brokerage and any cooperating brokerages. Acknowledgment of receipt of all terms and conditions is a key aspect of confirming that the seller is fully aware of their commitments and obligations. Finally, including the agreed-upon listing price affirms a fundamental element of the agreement, which clearly outlines the seller's expectations and objectives regarding the sale of their property.

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