Humber/Ontario Real Estate Course 3 Exam Practice

Which is true regarding guaranteed home sale plans under REBBA?

1. Such promises are not allowed as they are inducements, which are forbidden.

2. Promises are allowed if backed by a written contract specifying the promise.

3. REBBA restricts these promises to mortgage financing matters.

4. Allowed only in relation to residential properties, not commercial.

The correct answer is: Promises are allowed if backed by a written contract specifying the promise.

The correct answer emphasizes that guaranteed home sale plans can be permissible under the Real Estate and Business Brokers Act (REBBA) when they are substantiated by a written contract that clearly specifies the terms of the promise. This requirement for a written contract helps to ensure that the intentions and commitments of the parties involved are clearly defined, thereby providing protection for both the real estate professional and the client. By having a formal agreement, it outlines the obligations and expectations, which bolsters transparency and trust in the transaction. The requirement for a written contract is essential because it aligns with REBBA's broader commitments to consumer protection and ethical practices within the real estate industry. This ensures that clients are well-informed about the details of the home sale plan and prevents potential disputes arising from vague or misleading promises. In contrast, the notion that such promises could be seen as inducements is addressed by REBBA's regulations, indicating that a structured, written approach helps differentiate legitimate agreements from those that might be considered unethical or misleading. Additionally, REBBA's focus is not solely limited to mortgage financing matters or restricted by property types; therefore, the other choices do not accurately reflect the framework established by the act.