Humber/Ontario Real Estate Course 3 Exam Practice

If Buyer Singh hesitates to sign an exclusive buyer representation agreement, what can be inferred under REBBA?

1. Must sign in order to create a valid agreement.

2. If he signs, creates a valid agreement between himself and Salesperson Flora.

3. If he signs, is creating an express agreement as there is a definite understanding between himself and the brokerage.

4. If he signs, would be granting an exclusive authority to locate property for sale, but not property for lease.

5. If he signs, he cannot exit the agreement without penalty.

6. Must sign to receive any services from the brokerage.

The correct answer is: If he signs, is creating an express agreement as there is a definite understanding between himself and the brokerage.

In this scenario, if Buyer Singh hesitates to sign an exclusive buyer representation agreement under REBBA (Real Estate and Business Brokers Act), the correct inference based on the given options is that if he signs, he is creating an express agreement as there is a definite understanding between himself and the brokerage. Option A is incorrect because while signing the agreement is important, it is not a requirement to create a valid agreement under REBBA. Option B is incorrect as signing the agreement does not automatically create a valid agreement between Buyer Singh and Salesperson Flora. An agreement requires mutual consent and understanding from both parties. Option D is incorrect as the statement regarding exclusive authority to locate property for sale but not property for lease is not directly related to the implications of Buyer Singh signing the agreement. Option E is incorrect as REBBA regulations usually allow for provisions for buyers to exit the agreement under certain conditions without penalties. Option F is incorrect as signing the agreement should not be a prerequisite for receiving any services from the brokerage. Buyers can often receive initial services without signing an exclusive agreement.