Humber/Ontario Real Estate Course 4 Exam Practice

What is the correct statement related to keeping offers on file?

1. The cooperating brokerage must keep the rejected offers.

2. The listing brokerage may keep a summary document instead of actual offers.

3. An unsuccessful counter-offer by the seller must be kept for one year.

4. A counter-offer by the seller must be retained by the cooperating brokerage.

The correct answer is: An unsuccessful counter-offer by the seller must be kept for one year.

The statement indicating that an unsuccessful counter-offer by the seller must be kept for one year is correct because it aligns with regulatory requirements regarding the retention of documentation in real estate transactions. Keeping records of offers, including unsuccessful counter-offers, ensures transparency and provides a clear historical record of negotiations that can be useful for future reference or if disputes arise. Keeping records for a specified duration, such as one year, is standard practice in the industry to maintain compliance with legal obligations and to safeguard the interests of all parties involved. This practice helps to protect the integrity of the transaction process and facilitates any necessary review or audit of the dealings that occurred during that period. In contrast, the requirement for the cooperating brokerage to keep rejected offers, the possibility of relying on a summary document in place of actual offers by the listing brokerage, and the retention of counter-offers by the cooperating brokerage may not hold the same level of regulatory scrutiny or necessity for comprehensive record-keeping that applies to unsuccessful counter-offers. These distinctions highlight the importance of properly maintaining documents that directly impact the parties' decisions in the transaction process.