Humber/Ontario Real Estate Course 4 Exam Practice

A seller signed a listing agreement with a brokerage. The brokerage found a buyer who made an acceptable offer, but the seller refused to close because he couldn't buy a desired larger home. What can the brokerage do?

1. No remuneration is due and payable, as the sale was not completed.

2. Remuneration would only be due if the sale did not close because of the buyer's default or neglect, not the seller's.

3. The brokerage can pursue the seller for remuneration, given the seller's default or neglect.

4. The brokerage cannot pursue any remuneration, as the listing agreement has expired.

The correct answer is: No remuneration is due and payable, as the sale was not completed.

In this scenario, the correct answer is "A. No remuneration is due and payable, as the sale was not completed." This is because if the seller refuses to close the deal for personal reasons, such as not being able to purchase a larger home, it is considered the seller's fault that the sale did not go through. In such a situation, the brokerage is not entitled to any remuneration since they fulfilled their part of the agreement by finding a buyer who made an acceptable offer. Remuneration is usually due to the brokerage only if the sale fails to close due to the default or neglect of the buyer, not the seller. Options B, C, and D are incorrect: - Option B is incorrect because it states that remuneration would only be due if the sale did not close because of the buyer's default or neglect, which is not the case in this scenario. - Option C is incorrect as pursuing the seller for remuneration in this case would not be valid because the seller's refusal to close was based on personal reasons, not due to default or neglect on the buyer's part. - Option D is incorrect because the expiry of the listing agreement does not necessarily absolve the seller from their obligations if