Humber/Ontario Real Estate Course 4 Exam Practice

What is correct about inducements relating to guaranteed home sale plans under REBBA?

1. Such inducements are illegal and not permitted under any circumstances.

2. These plans are allowed but must be backed by detailed written contracts outlining the promise.

3. Inducements can only involve adding extra features to the property.

4. REBBA does not specifically address such guaranteed home sale plans.

5. Such plans are only allowed for properties valued below a certain threshold.

6. Inducements are permitted if they are orally confirmed during client meetings.

The correct answer is: These plans are allowed but must be backed by detailed written contracts outlining the promise.

The correct answer highlights that guaranteed home sale plans are permitted under REBBA, provided they are supported by detailed written contracts that clearly outline the terms of the promise being made. This requirement for a written agreement is crucial as it ensures that both the real estate professional and the client have a clear understanding of the obligations and expectations involved in the plan. Having a written contract helps to protect all parties involved by providing a legal framework that can be referred to in case of disputes or misunderstandings. This aligns with the general principles of transparency and accountability that govern real estate practices. Other options suggest either outright prohibitions or limitations that do not align with the correct interpretation of REBBA. The necessity for detailed contracts underscores the regulatory body's aim to maintain professionalism and ethical standards in real estate transactions, ensuring that clients are adequately informed and protected throughout the process.