Humber Real Estate - Course 2, Module 2, Documenting Relationships with Sellers and Buyers 2023 Questions and Answers
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Humber Real Estate
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Humber Real Estate
Humber Real Estate - Course 2, Module 2, Documenting Relationships with Sellers and Buyers 2023 Questions and Answers
- The effective date and expiry date of the agreement (can only be one expiry date)
- The method for calculating commission or other remuneration payable to the brokerage (in th...
Humber Real Estate - Course 2, Module 2, Documenting
Relationships with Sellers and Buyers 2023 Questions and
Answers
- The effective date and expiry date of the agreement (can only be one expiry
date)
- The method for calculating commission or other remuneration payable to the
brokerage (in the case of a seller, the amount payable)
- How the commission or other remuneration will be paid
- The services that the brokerage will provide under the agreement
What 4 things must be specified on both representation and customer service
agreements?
The expiry date
If the term of a representation or customer service agreement is more than 6 months,
what must be prominently displayed on the first page, and requires an initial by the
seller/buyer?
No. Each seller must receive their own individual copy of the signed listing
agreement.
If two sellers sign one representation agreement, is it acceptable to present them with
one copy of the signed document, if they sign in person at the same time?
- A salesperson has conveyed a written offer that is accepted by the seller
- A salesperson shows a property to the buyer, who subsequently purchases the
property
- The salesperson introduces the seller and the buyer, for the purpose of
discussing the acquisition or disposition of an interest in real estate
Under REBBA, when might specific conditions allow remuneration to be paid without a
written agreement?
- The brokerage is representing both the seller and the buyer in the same
transaction (i.e. both the seller and the buyer are clients)
- The brokerage is representing the seller as a client and is providing services to
the buyer as a customer in the same transaction
- The brokerage is representing the buyer as a client and is providing services to
the seller as a customer in the same transaction
In what situations would the salesperson need to disclose the nature of the relationship
to both the buyer and seller?
No. The seller agrees in their representation agreement to indemnify the
brokerage in case of damage, theft, vandalism or fire that may occur during the
marketing process, providing the brokerage is not behaving negligently in
carrying out its duties.
If a home is locked up properly after an open house, and then is broken into, is the
brokerage liable for the damages?
2.5% as agreed to in the buyer representation agreement. (Seller pays 1.5% and
buyer pays the additional 1%)
, If a buyer agrees the brokerage should received a commission of 2.5% of the sale price
of any property purchased during the term of their agreement, and the seller is providing
1.5% commission, how much commission will the buyer's brokerage make?
- Exclusive with one brokerage
- Placed on a listing service inviting co-operation from other brokerages
- Open listing
What types of listings are there?
The seller gives the sole right to market and sell their property to one brokerage.
The brokerage is authorized by the seller to sell their property during the time
specified in the agreement and on the terms agreed to.
Note: Only the brokerage with whom a seller has signed an exclusive agreement
is authorized to show the property to potential buyers, and the property wouldn't
be advertised on a listing service.
Define an 'Exclusive Listing'
Because the seller has given specific instructions regarding the showing of the
property that the brokerage must follow. For example, pre-qualifying potential
buyers for high-end properties, ensuring privacy and tighter control over who is
shown the property (i.e. no nosy neighbours wanted).
Why would a seller choose an 'Exclusive Listing' with a brokerage?
By restricting the authority to sell the property to the listing brokerage, buyers
working with other brokerages may not know of the property's availability and
miss the opportunity to view and purchase the property.
What is a potential major issue when a seller considers an 'Exclusive Listing'?
The most common form of listing; the property is placed on a listing service (i.e.
MLS) and the authority to list is granted to only one brokerage, however, the
seller permits the listing brokerage to co-operate with other brokerages in the
sale of the property.
Define a listing via 'Listing Service'
A seller signs a representation agreement with two or more brokerages at the
same time. There's only one listing, but two or more brokerages share the
responsibilities and the commission. Note: This doesn't happen very often but
can happen when multiple owners of the same property want their own
representation (i.e. during separation or divorce)
What is a 'Co-Listing' (aka 'Shared Listing')?
Also known as For Sale By Owner (FSBO), is when a seller does not list their
property with any brokerage, however the seller is willing to allow any brokerage
to show the property to a buyer. This is often identified by a sign on the property
stating 'Brokers Protected', meaning the seller will co-operate with any brokerage
and will compensate the brokerage who first acquires a buyer ready, willing and
able to meet the terms of the listing or secures the acceptance by the seller of a
satisfactory offer.
Define an 'Open Listing'
An agreement to pay commission (rather than a representation agreement). The
seller is not a client and the brokerage does not owe the seller any fiduciary
obligations.
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