Humber/Ontario Real Estate Course 4 Exam Practice

If a buyer refuses to sign a buyer representation agreement but wants representation, what can Salesperson Goodwin do?

1. An agency relationship cannot exist without a formal agreement.

2. The brokerage cannot represent the buyer without a signed agreement.

3. The brokerage can represent the buyer but lacks formal written agreement if a dispute arises.

4. The buyer representation agreement is not valid without the buyer's signature.

5. The brokerage must terminate any assistance to the buyer.

6. Salesperson Goodwin must seek alternative arrangements for the buyer.

The correct answer is: The brokerage can represent the buyer but lacks formal written agreement if a dispute arises.

In this scenario, option C is the correct choice. The Real Estate Council of Ontario (RECO) permits a brokerage to represent a buyer even without a formal written agreement in place. However, it is crucial to note that having a written agreement is always recommended to avoid any misunderstandings and to clearly outline the responsibilities and expectations of both parties. In case a dispute arises, having a written agreement can help in resolving conflicts more effectively. Therefore, even though the buyer refuses to sign, Salesperson Goodwin can still provide representation to the buyer, but it is advisable to document the terms and conditions agreed upon to protect both parties involved.