Humber/Ontario Real Estate Course 4 Exam Practice

What should Salesperson Stuart do when seeking remuneration confirmation from another brokerage before presenting an offer?

1. Call the other brokerage to verbally confirm payment arrangement.

2. Draft and sign a cooperation and representation form with an authorized individual from the other brokerage beforehand.

3. Send a post-offer letter seeking payment agreement.

4. Get a copy of the other brokerage's exclusive listing agreement.

The correct answer is: Draft and sign a cooperation and representation form with an authorized individual from the other brokerage beforehand.

The correct answer involves drafting and signing a cooperation and representation form with an authorized individual from the other brokerage beforehand. This is crucial because it formalizes the understanding and agreements between the two brokerages regarding compensation before any offer is made. Doing so ensures that both parties are on the same page about remuneration and helps to establish a clear professional relationship. By using the cooperation and representation form, Stuart not only confirms the payment arrangement but also protects himself legally by documenting the agreement in writing. This step mitigates potential disputes about commissions or payment terms later on, providing a transparent basis for cooperation. In contrast, simply calling the other brokerage to verbally confirm payment arrangements may not create a binding agreement and can lead to misunderstandings. Sending a post-offer letter seeking payment agreement comes too late in the process and could leave Stuart without assurance prior to presenting the offer. Lastly, obtaining a copy of the other brokerage's exclusive listing agreement would not directly address the issue of remuneration confirmation and is not necessary for this process.