Humber/Ontario Real Estate Course 3 Exam Practice

How can Salesperson Novelo transfer his commercial buyer clients when moving to a new brokerage?

1. Cancel the seven buyer representation agreements using the cancellation of buyer representation agreement form and then have these former clients sign buyer representation agreements with the new brokerage.

2. The assignment of these agreements is an internal matter between the two brokerages and the buyers need not be involved.

3. The current brokerage can assign the seven clients to the new brokerage, provided that the buyer clients agree.

4. Partial assignments are not possible, so all eleven buyer representation agreements must be assigned to the new employing brokerage.

The correct answer is: The current brokerage can assign the seven clients to the new brokerage, provided that the buyer clients agree.

The correct approach in this scenario is for the current brokerage to assign the buyer representation agreements to the new brokerage, given that the buyer clients consent to this transfer. This method ensures that the rights and obligations established in the original agreements are honored, and that the transition is handled lawfully. Clients have a vested interest in where their representation comes from, so their agreement is necessary for the assignment to take effect. It is crucial for Salesperson Novelo to handle client relationships with care during this transition, as the clients' original agreements typically specify the terms and conditions of their representation. Current brokerage practices may allow for this assignment, as long as all parties involved—especially the clients—are kept informed and engaged in the process. This pathway also aligns with maintaining continuity in service, as clients would feel assured that their representation is not disrupted by Novelo’s change of brokerage. The emphasis on client consent and the brokerage's ability to manage assignments properly ensures that the integrity of the real estate process is upheld, and avoids potential disputes or misunderstandings between the transitioning brokerages and the clients.