Humber/Ontario Real Estate Course 4 Exam Practice

Which responsibility is correct for a custom seller representation agreement under REBBA Code of Ethics?

1. Including a holdover clause limited to six months.

2. Defining the services the brokerage will provide.

3. Incorporating a clause about using and distributing property information.

4. Ensuring the seller refers all interested buyers to the brokerage.

The correct answer is: Defining the services the brokerage will provide.

The responsibility to define the services the brokerage will provide is essential in a custom seller representation agreement under the Real Estate and Business Brokers Act (REBBA) Code of Ethics. This clarification helps ensure that both the seller and the brokerage have a mutual understanding of the expectations and scope of the services offered, which can include marketing strategies, communication practices, and the extent of representation during negotiations. Clear definitions help prevent misunderstandings and promote transparency in the broker-client relationship. While other responsibilities mentioned may be relevant in certain contexts, they do not capture the fundamental duty to specify the services provided, which is pivotal for establishing a solid foundation for the agreement. This clarity benefits both parties by ensuring everyone is on the same page regarding what services will be delivered throughout the selling process.