Humber/Ontario Real Estate Course 4 Exam Practice

When does a buyer have to pay remuneration despite an expired representation agreement?

1. When the property is not listed

2. If the purchase is through the brokerage

3. When introduced during the agreement term

4. When signing a new agreement with another brokerage

The correct answer is: When introduced during the agreement term

A buyer is obligated to pay remuneration when the purchase is made through the brokerage to which they were introduced during the term of the representation agreement, even if that agreement has expired. This obligation is in place to protect the broker's right to compensation for their work in initially introducing the buyer to the property. The rationale is that the broker initiated the relationship and provided value while the representation agreement was active. This principle ensures that brokers are compensated for their efforts, even if the formal agreement has ended, as long as the introduction occurred during the term of the original agreement. This rule is designed to prevent buyers from evading their obligations simply by allowing the representation agreement to lapse, maintaining fairness and integrity in real estate transactions.