Humber/Ontario Real Estate Course 3 Exam Practice

If Seller McCallum signs a seller customer service agreement with Salesperson Whitnell, what does McCallum acknowledge?

1. This is an exclusive seller customer service agreement.

2. Remuneration will be paid to Salesperson Whitnell's employing brokerage.

3. Salesperson Whitnell will represent him in the sale of his property.

4. No duties are owed to the seller under this agreement.

5. This agreement creates fiduciary obligations towards the seller.

6. The seller is guaranteed higher service standards under this agreement.

The correct answer is: Remuneration will be paid to Salesperson Whitnell's employing brokerage.

When Seller McCallum signs a seller customer service agreement with Salesperson Whitnell, he acknowledges that remuneration will be paid to Salesperson Whitnell's employing brokerage. This means that any commission payable for the sale of the property will be directed to the brokerage firm rather than to Whitnell personally. This acknowledgment underscores the standard practice in real estate transactions, where salespersons operate under the auspices of a brokerage. The agreement clarifies the financial arrangements involved in the transaction, establishing a clear understanding that the brokerage is the entity entitled to compensation for the services rendered, thus promoting transparency in the financial dealings between the seller and the real estate professional. Furthermore, it is important to distinguish the nature of the relationship that McCallum is entering into through this agreement. While Salesperson Whitnell may assist McCallum in selling the property, the service agreement specifically pertains to the financial arrangements and does not imply representation or fiduciary duties such as those found in a buyer or seller representation agreement. Therefore, understanding this aspect is crucial when navigating real estate agreements to ensure that all parties are clear on their roles and obligations.