Humber/Ontario Real Estate Course 4 Exam Practice

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Which of the following is NOT a requirement for a seller representation agreement according to the REBBA Code of Ethics?

  1. The agreement must specify the effective and termination dates.

  2. It must detail the remuneration for the brokerage and any cooperating brokerage.

  3. The services to be provided by the brokerage must be included.

  4. Sellers must initial any agreement that exceeds eight months.

  5. The seller's pricing strategy must be documented.

  6. The agreement must undergo periodic reviews.

The correct answer is: Sellers must initial any agreement that exceeds eight months.

The requirement that sellers must initial any agreement that exceeds eight months is not a standard provision outlined in the Real Estate and Business Brokers Act (REBBA) Code of Ethics for seller representation agreements. While it is important for real estate agreements to be clear and understood by all parties involved, the act does not specifically mandate that sellers provide an initial for agreements extending beyond eight months. In contrast, a seller representation agreement must include specific details such as the effective and termination dates, the remuneration structure for the brokerage and any cooperating brokerage, and a description of the services the brokerage will provide. These components ensure that both the seller and the brokerage have a clear and mutual understanding of the terms of the agreement. Additionally, maintaining transparency in regards to the seller's pricing strategy can often be beneficial; however, it is not an explicit requirement within the context of the code. Periodic reviews of the agreement are also recommended practices that support ongoing communication and adjustments as necessary, but are not mandated by the act itself. Overall, the emphasis in the requirements revolves around clarity, transparency, and mutual agreement on the key elements of the seller-broker relationship, rather than the specific initialing of longer-term agreements.

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