Humber/Ontario Real Estate Course 4 Exam Practice

According to the guidelines of the REBBA Code of Ethics, a buyer representation agreement must be:

1. In writing, signed, and given to the buyer immediately

2. Only verbal if both parties agree

3. Documented and stored within 48 hours

4. Subject to a mandatory government review

5. Approved by a third-party witness

6. Filed with the local real estate board

The correct answer is: In writing, signed, and given to the buyer immediately

A buyer representation agreement must be in writing, signed, and given to the buyer immediately to ensure that both parties have a clear understanding of their obligations and rights within the contractual relationship. This requirement is rooted in the need for transparency and professionalism in real estate transactions, ensuring that buyers are fully informed of the agreement's terms. The written nature of the agreement serves to create a legally binding contract, which protects the interests of both the buyer and the representative. It provides documented proof of the agreed-upon terms and conditions, reducing the likelihood of misunderstandings or disputes in the future. Additionally, presenting the agreement to the buyer immediately helps to establish trust and reinforces the importance of the representation from the outset of the relationship. In contrast, the other options do not meet the standards set by the REBBA Code of Ethics. For instance, a verbal agreement could lead to ambiguity and potential disagreements, while documentation and storage within 48 hours do not align with the immediate provision of the signed agreement. Further, mandatory government review or third-party witness approval is not a requirement, nor is it necessary to file the agreement with a local real estate board. The emphasis on prompt, written agreements underscores the importance of professionalism in real estate dealings.