Humber/Ontario Real Estate Course 4 Exam Practice

How can Salesperson Novelo transfer seven commercial buyer clients to a new brokerage?

1. Salesperson Novello must cancel the seven buyer representation agreements using the cancellation of buyer representation agreement form and then have these former clients sign buyer representation agreements with the new brokerage.

2. The assignment of these agreements is an internal matter between the two brokerages and the buyers need not be involved.

3. Partial assignments are not possible, so all eleven buyer representation agreements must be assigned to the new employing brokerage.

4. The current brokerage can assign the seven clients to the new brokerage, provided that the buyer clients agree.

5. Four residential clients must also be transferred along with the commercial clients.

6. The agreement terms allow automatic transfer without client consent.

The correct answer is: The current brokerage can assign the seven clients to the new brokerage, provided that the buyer clients agree.

In this scenario, Salesperson Novelo can transfer the seven commercial buyer clients to a new brokerage by having the current brokerage assign these clients to the new brokerage with the clients' agreement. This is the correct answer because the transfer of clients from one brokerage to another typically requires the consent of the clients involved. It is crucial to have the agreement and cooperation of the clients in the process of transferring representation to ensure a smooth transition. Option A is incorrect because simply canceling the buyer representation agreements and having the clients sign new agreements with the new brokerage may not be sufficient or in compliance with industry regulations. Option B is incorrect because the assignment of agreements usually requires involvement and agreement from the clients being transferred. Option C is incorrect as it mentions all eleven agreements being transferred, which is not aligned with the scenario provided. Option E is incorrect as it introduces additional residential clients into the scenario, which is not mentioned in the question. Option F is incorrect because, in most cases, client consent is required for the transfer of representation agreements between brokerages.