Humber/Ontario Real Estate Course 3 Exam Practice

Which document outlines the commission agreement between a real estate brokerage and a client?

1. Agreement of Purchase and Sale.

2. Listing Agreement.

3. Disclosure Form.

4. Agent Commission Form.

The correct answer is: Listing Agreement.

A Listing Agreement is a legal document that outlines the terms of the agreement between a real estate brokerage and a client. It includes important details such as the property information, listing price, duration of the agreement, and the commission split between the brokerage and the agent. This document is essential in formalizing the business relationship between the brokerage and the client, and it is typically signed before any marketing or sale activities begin. Option A, Agreement of Purchase and Sale, is a contract used to outline the details of a specific property transaction between a buyer and seller. This document does not pertain to the commission agreement between a brokerage and a client. Option C, Disclosure Form, is a document used to disclose any potential conflicts of interest or pertinent information that may affect the sale of the property. It is not directly related to the commission agreement between a brokerage and a client. Option D, Agent Commission Form, is a document used to outline the commission split between the agent and the brokerage. While this may be a component of the commission agreement, it is not the main document that outlines the terms and conditions of the agreement. Therefore, it is not the correct answer to the question.