Humber/Ontario Real Estate Course 4 Exam Practice

If Buyer Baldwin purchases a property through another brokerage after an agreement with ABC Realty Inc. expires, and the property was introduced by Salesperson Nicholls, what is his remuneration responsibility?

1. Buyer Baldwin must pay remuneration to both brokerages involved.

2. Buyer Baldwin must pay remuneration to Salesperson Nicholls' brokerage as well as any amount due under the new agreement.

3. Buyer Baldwin is obligated to pay remuneration only under the new buyer representation agreement.

4. Buyer Baldwin’s obligation depends on the maximum holdover period established under REBBA, which is 45 days for residential properties.

5. Buyer Baldwin's obligation depends on whether the property was shown by Salesperson Nicholls only, and not other salespersons within that brokerage.

6. Buyer Baldwin does not need to pay dual remuneration if the property is purchased through another brokerage.

The correct answer is: Buyer Baldwin must pay remuneration to Salesperson Nicholls' brokerage as well as any amount due under the new agreement.

When a buyer purchases a property through another brokerage after their agreement with a particular brokerage expires, they are still responsible for paying remuneration to the original brokerage if the property was introduced to them by a salesperson from that brokerage. In this scenario, since Salesperson Nicholls introduced the property to Buyer Baldwin, the buyer must pay remuneration to Salesperson Nicholls' brokerage as well as any amount due under the new agreement. This is to ensure fair compensation for the efforts and services provided by the salesperson who originally introduced the property to the buyer. Option A is incorrect because the buyer is not required to pay remuneration to both brokerages involved; they only need to compensate the brokerage whose salesperson initially introduced the property. Option C is incorrect because the buyer is not only obligated to pay remuneration under the new buyer representation agreement but also to the original brokerage if the property was introduced by a salesperson from that brokerage. Option D is incorrect because the buyer's obligation to pay remuneration is not dependent on the maximum holdover period established under REBBA. The requirement to pay remuneration is based on the original introduction of the property by a specific salesperson. Option E is incorrect because the buyer's obligation