Humber/Ontario Real Estate Course 4 Exam Practice

If ABC Realty Inc. does not comply with the listing agreement terms, how much remuneration is XYZ Real Estate Limited entitled to?

1. Full 5% remuneration regardless of ABC Realty’s involvement.

2. 4% remuneration as per their listing agreement from August 15th to October 15th.

3. Only half of the agreed amount due to shared brokerage efforts.

4. No remuneration if ABC Realty first introduced the buyer.

5. Remuneration determined by seller's final agreement.

6. 3% as though acting independently of ABC Realty.

The correct answer is: 4% remuneration as per their listing agreement from August 15th to October 15th.

In the context of real estate transactions, when a brokerage does not comply with the terms of a listing agreement, the remuneration they are entitled to can be influenced by various factors such as the specifics outlined in the agreement and the actions taken by the parties involved. Choosing the option that states 4% remuneration as per their listing agreement from August 15th to October 15th recognizes that there was a predefined percentage set within the agreement for the duration mentioned. This reflects a basic principle in real estate practice: that commissions are often set within the parameters of the listing agreement and are contingent upon the terms agreed upon by both parties. If the agreement specifies a certain percentage for the duration of the listing, then that percentage should generally be honored unless other contractual terms apply, such as a breach. This understanding indicates that the remuneration is not typically based solely on the actions or compliance of the other brokerage but rather on the contractual agreement that was made prior. The references to other percentages or conditions in other choices suggest alternative scenarios but do not address the specific contractual obligation highlighted in option B.