Humber/Ontario Real Estate Course 3 Exam Practice

How long must a seller’s brokerage retain the summary document of an unsuccessful offer?

1. Retain the summary document and the offer for one year.

2. Retain either a summary document or the offer for one year.

3. Only keep a summary document for a minimum of six months.

4. Keep a complete copy of the offer for one year.

The correct answer is: Retain either a summary document or the offer for one year.

The requirement for a seller’s brokerage to retain either a summary document or the offer for one year is based on regulatory standards aimed at ensuring accountability and transparency in real estate transactions. This stipulation allows brokerages to provide a record of activity that took place during the offer process, whether or not the offer was successful. By mandating the retention of at least one of these documents for a year, the regulations facilitate potential audits and provide a means of dispute resolution if questions arise about the offer process in the future. This approach also ensures that all parties involved in the transaction have access to documented evidence of the offers made, which could be critical for understanding the seller's position and decisions in the context of that specific real estate transaction. The flexibility of retaining either the summary or the complete offer means brokerages can manage their records according to their operational preferences while still complying with regulatory standards. This helps in balancing the need for thorough documentation and the practical limitations that might arise in managing paperwork and records.