Humber/Ontario Real Estate Course 4 Exam Practice

When is a written contract required for Salesperson Hubbard?

1. Any promise to purchase a property if it doesn't sell

2. Any assurance regarding mortgage approval

3. Any creation of promotional brochures

4. Any negotiation of a lease on behalf of a client

The correct answer is: Any creation of promotional brochures

A written contract is required in the context of negotiating a lease on behalf of a client. In real estate transactions, having a written agreement is crucial as it provides a clear and enforceable outline of the terms agreed upon by the parties involved. This written documentation is particularly important for leases, as they are legally binding agreements that outline responsibilities concerning the use of the property, payment terms, duration of the lease, and other essential details. In the case of negotiating a lease, if Salesperson Hubbard is acting on behalf of a client, the law requires that a written contract be established to protect both the landlord's and the tenant's rights. This helps to prevent misunderstandings or disputes about the terms of the lease in the future. Other scenarios, such as promises to purchase a property that hasn't sold, assurances concerning mortgage approvals, or creating promotional brochures, typically do not require formal written contracts in the same manner as lease negotiations. Promises and assurances may be made informally, and promotional material does not constitute a binding agreement between parties. Therefore, the requirement for a written contract specifically applies to the negotiation of leases in this context.