Humber/Ontario Real Estate Course 4 Exam Practice

According to REBBA, what must a buyer do to finalize a valid agreement with a brokerage?

1. Verbally assure intent to the salesperson.

2. Only sign an exclusive buyer representation agreement.

3. Document the agreement in writing including all necessary terms and conditions.

4. Agree to pay a fixed commission to the brokerage.

5. Seek an independent legal review before signing.

6. Pay a non-refundable retainer fee upfront.

The correct answer is: Document the agreement in writing including all necessary terms and conditions.

To finalize a valid agreement with a brokerage, it is essential for a buyer to document the agreement in writing, including all necessary terms and conditions. This written documentation serves several important purposes. It ensures that both parties have a clear understanding of their obligations and rights under the agreement, which helps to prevent misunderstandings and disputes later on. Additionally, having a written agreement is often a requirement under the Real Estate and Business Brokers Act (REBBA) to ensure compliance with legal standards and regulations in the real estate industry. While other options may describe aspects of the process or additional steps a buyer might take, they do not fulfill the core requirement set out by REBBA for a valid agreement. The written agreement is fundamental, as it formalizes the relationship between the buyer and the brokerage and outlines the details of the services being provided.