Humber/Ontario Real Estate Course 3 Exam Practice

If a buyer signs a new agreement with another brokerage after their agreement with the initial brokerage expires, and purchases a property that was introduced by the first brokerage, what is true regarding the obligation to pay remuneration?

1. Buyer’s obligation to pay remuneration is reduced by the amount paid under the subsequent buyer representation agreement.

2. Buyer would not need to pay remuneration to two brokerages if another brokerage sold the property.

3. This scenario arises only if the property was shown by the original salesperson and not others.

4. Responsibility to pay remuneration is limited to a maximum period set under REBBA, which is 45 days for a residential property.

The correct answer is: Buyer’s obligation to pay remuneration is reduced by the amount paid under the subsequent buyer representation agreement.

In this scenario, the correct understanding is that the buyer's obligation to pay remuneration is indeed impacted by agreements with different brokerages. When a buyer works with a new brokerage after the initial agreement has expired, and they purchase a property that was initially introduced to them by the first brokerage, they are not entirely free from paying remuneration. Instead, their obligation to one brokerage would be adjusted, meaning that they would only need to pay the difference in remuneration after considering any payment made under the new buyer representation agreement. The rationale is grounded in the concept of fair compensation for services rendered by brokerages and agents. When a property is introduced by the first brokerage, they have a claim to remuneration for that introduction, but payments made through another agreement effectively take this into account. Thus, the total remuneration owed would likely be reduced by any amounts paid under the subsequent agreement, ensuring the buyer is not penalized for engaging multiple brokerages in the course of their property purchase. The other options present different interpretations of the responsibilities and obligations regarding remuneration but do not capture the essential principle of adjusting the obligation based on the total remuneration agreed upon through the different brokerage agreements.