Humber/Ontario Real Estate Course 4 Exam Practice

For a custom seller representation agreement, what must be included as per REBBA Code of Ethics?

1. A clause detailing services offered by the brokerage.

2. A holdover provision not exceeding six months.

3. A statement about the distribution of property information.

4. A requirement for sellers to refer all potential buyers to the brokerage.

The correct answer is: A clause detailing services offered by the brokerage.

The inclusion of a clause detailing the services offered by the brokerage in a custom seller representation agreement is essential as per the REBBA Code of Ethics. This clause serves to clarify the specific services that the brokerage will provide to the seller, ensuring transparency and mutual understanding about the scope of the brokerage's responsibilities. By outlining these services, the seller can understand what to expect and how the brokerage intends to assist them in the selling process, thereby fostering a trust-based relationship. While other elements like holdover provisions, statements about property information distribution, and requirements for referrals may seem relevant, they do not hold the same foundational importance as explicitly describing the services. Clear communication about services is a critical component of professional conduct and ethical representation in real estate transactions.