Humber/Ontario Real Estate Course 4 Exam Practice

Salesperson Russell, employed by Generic Real Estate Ltd., is representing a buyer and submits a written offer from that buyer to the seller's brokerage for presentation to the seller client. However, the offer is not accepted by the seller. In this situation:

1. REBBA requires that the seller's brokerage retain a copy of the unaccepted offer, however, an equivalent summary document is acceptable if the offer amount is less than $500,000.

2. Salesperson Russell must ensure that either a copy of the unaccepted offer or an equivalent summary document be retained by Generic Real Estate Ltd.

3. The seller's brokerage must retain a copy of the unaccepted offer or an equivalent summary document for a period of six years.

4. If an equivalent summary document is being retained, it must include such things as the brokerage names, date/time when the offer was made and the address/legal description of the property.

The correct answer is: If an equivalent summary document is being retained, it must include such things as the brokerage names, date/time when the offer was made and the address/legal description of the property.

The correct answer focuses on the requirements for retaining an equivalent summary document if a written offer is not accepted. When handling real estate transactions, it is essential for brokerages to maintain accurate and comprehensive records. In the event that an offer is unaccepted, retaining a summary document ensures that all critical information related to the offer is still available for review. This summary document must include key details such as the names of the brokerages involved, the date and time the offer was submitted, and the address or legal description of the property in question. These elements are vital for various reasons, including compliance with regulatory requirements, clarity in communications between parties, and potential future reference for the transaction history. While the other options touch on the importance of retaining documents, they either do not encompass the specific details required for a summary document or misstate the implications of not retaining the original offer itself. The focus on including specific details makes the correct option the most accurate response regarding the legal and procedural expectations for real estate transactions in this context.