Humber/Ontario Real Estate Course 3 Exam Practice

On what basis can a real estate brokerage claim remuneration after the expiry of a listing agreement?

1. The closing date of the sale

2. The duration of the holdover period

3. The type of property sold

4. The introduction of the buyer

5. The seller’s initial listing agreement

6. The intermediary involved in the sale

The correct answer is: The duration of the holdover period

A real estate brokerage can claim remuneration after the expiry of a listing agreement based on the duration of the holdover period. This period is a specified timeframe following the conclusion of a listing agreement during which the brokerage may still be entitled to a commission if the property sells to a buyer who was introduced to the property during the listing period. Understanding the holdover period is crucial because it protects the brokerage's interests. It acknowledges their efforts in bringing buyers to the property and establishes a window in which they can still benefit from that effort, even after the formal agreement has ended. Recognizing the importance of this period ensures that brokers are compensated for their work in marketing and negotiating the sale, even if the transaction closes after the listing has expired.