Humber/Ontario Real Estate Course 4 Exam Practice

According to the REBBA Code of Ethics, what is required in a seller customer service agreement?

1. The agreement must differ based on whether the individual is a client or customer

2. The minimum content must differ from that of a customer service agreement

3. The agreement must have an effective date, expiry date, and remuneration details

4. The requirements apply to representation agreements but not to customer service agreements

5. The agreement must include details of the property description

6. The agreement must include the seller's history of the property

The correct answer is: The agreement must have an effective date, expiry date, and remuneration details

In accordance with the REBBA Code of Ethics, a seller customer service agreement must include specific essential components, which are outlined in option C. This option highlights the requirement for the agreement to have an effective date, expiry date, and details regarding remuneration. Including an effective date ensures that both parties are clear about when the agreement begins, while an expiry date provides a clear end to the contractual obligations, which helps avoid misunderstandings. Additionally, specifying remuneration details is crucial since it outlines how the agent will be compensated for their services, ensuring transparency and clarity in financial arrangements. The other options do not align with the specific requirements outlined in the REBBA Code of Ethics. For instance, while understanding the distinction between a client and a customer is important in real estate practice, the agreement itself does not need to vary based on this aspect. Similarly, the minimum content of a customer service agreement is expected to cover essential details, but it does not inherently differ from other agreements in terms of format or content necessity. Other options mentioning property descriptions and seller history, while relevant in some contexts, are not specified requirements for a customer service agreement under the REBBA Code, focusing instead on core contractual elements that frame the working relationship effectively.