Humber/Ontario Real Estate Course 4 Exam Practice

When Seller James signs a seller customer service agreement with Salesperson Rowena for the sale of his property, he:

1. Confirms an exclusive seller customer service agreement.

2. Agrees to pay commission to Rowena’s employing brokerage.

3. Agrees that Rowena will represent him in the property sale.

4. Acknowledges no duties owed to the seller under this agreement.

The correct answer is: Agrees to pay commission to Rowena’s employing brokerage.

When Seller James signs a seller customer service agreement with Salesperson Rowena, he is indeed agreeing to pay commission to Rowena’s employing brokerage. This aspect is fundamental to the functioning of real estate transactions because the commission represents the agreed compensation for the services provided in facilitating the sale. In a seller customer service agreement, the seller generally acknowledges that they will be responsible for compensating the brokerage for its efforts in marketing and selling the property. This shows the seller’s understanding of the business relationship and obligation to pay for the professional services rendered by the salesperson, who acts on behalf of a brokerage firm. The other options reflect varying definitions of representation and roles that are not necessarily established within the context of a seller customer service agreement. Such agreements typically do not confirm an exclusive representation (as suggested in the first option) nor do they indicate that Rowena, as the salesperson, will represent the seller directly (as suggested in the third option). Lastly, Seller James does not acknowledge that no duties are owed to him, as such agreements typically outline the responsibilities of the parties involved. Instead, the agreement usually highlights the brokerage's role and the financial obligations associated with that role.