Humber/Ontario Real Estate Course 3 Exam Practice

Which one of the following statements is correct regarding remuneration as per REBBA?

1. It must be a fixed percentage only

2. It can include a flat fee and a percentage of the sale

3. It must always follow government-fixed rates

4. It cannot be below a certain threshold

5. Non-disclosed rates are punishable by law

6. It should be determined post-transaction

The correct answer is: It can include a flat fee and a percentage of the sale

The correct statement regarding remuneration as per the Real Estate and Business Brokers Act (REBBA) is that it can include a flat fee and a percentage of the sale. This flexibility allows real estate professionals to structure their compensation in a way that can suit different types of transactions and client needs. This approach recognizes the variability in real estate transactions and acknowledges that different properties or situations may require different remuneration structures. For instance, a seller may agree to a flat fee for marketing a property while also offering a commission based on the final sale price, creating a more streamlined and negotiated agreement. The notion that remuneration must be a fixed percentage is overly restrictive and doesn't cater to the diverse circumstances found in the real estate market. Similarly, stating that remuneration must always comply with government-fixed rates does not account for the individual agreements made between agents and clients. The idea of remuneration not being able to fall below a certain threshold may not apply universally and could impose unnecessary constraints on real estate operations. Non-disclosed rates being punishable by law emphasizes the importance of transparency in remuneration, and while determining remuneration post-transaction is not ideal, the timing of agreeing on compensation should typically be established prior to the transaction. Overall, the flexibility in how remuneration is structured is fundamental to