Humber/Ontario Real Estate Course 4 Exam Practice

What requirement must exist for remuneration rates if not otherwise stated in a contract?

1. Calculated per legal advisor

2. Determined based on market trends

3. Fixed by the government

4. Specified prior to contract completion

5. Subject to buyer's approval

6. Variable as per agent's decision

The correct answer is: Fixed by the government

The correct answer states that if remuneration rates are not otherwise specified in a contract, they must be fixed by the government. This is significant because many jurisdictions establish standard commission rates and core guidelines to ensure consistency and fairness within the real estate market. These government-established rates help protect consumers and create a baseline for remuneration that agents must adhere to in the absence of explicit contractual terms. In the context of real estate, this regulatory framework is designed to prevent potential exploitation and to promote transparency. By having a fixed rate set by the government, consumers can have a clearer understanding of what to expect regarding real estate fees, thus contributing to informed decision-making. The other options do not establish a mandatory framework for remuneration rates when a contract lacks this specification. For example, determining compensation based on market trends or making it subject to the buyer's approval introduces variability that may not provide the necessary structure intended by regulation. Similarly, options regarding the legal advisor's role or the agent's discretion do not address the baseline requirement set forth by statutory guidelines.