Humber/Ontario Real Estate Course 3 Exam Practice

Does Buyer Randall owe remuneration for a property discovered after his buyer representation agreement expired?

1. No, because the sale closed after the 90-day holdover period.

2. No, because he became aware of the property after the agreement expired.

3. Yes, because he saw the property during the holdover period.

4. Yes, because he must notify the brokerage of all properties found during the agreement's duration.

The correct answer is: No, because he became aware of the property after the agreement expired.

The reasoning behind the correct answer lies in the relationship between the timing of the agreement and the discovery of the property. A buyer representation agreement typically outlines the terms under which a buyer engages a brokerage to facilitate their property search. Once the agreement expires, the buyer does not owe remuneration for properties discovered afterward. In this case, since Buyer Randall became aware of the property only after the buyer representation agreement had expired, there is no obligation to pay remuneration to the brokerage. The agreements are designed to create a mutually beneficial relationship during their active period, and any properties discovered outside that period fall outside the scope of the agreement. The other choices revolve around concepts like holdover periods and awareness during the agreement, but they do not apply since the key factor is the timing of the discovery of the property concerning the expiration of the agreement. Thus, the correct answer emphasizes the importance of timing in relation to the buyer's obligation to pay remuneration.