Humber/Ontario Real Estate Course 3 Exam Practice

Regarding an open house offer presentation, which of the following is correct?

1. The offers must be presented in the order that they were received.

2. A representative from the listing brokerage needs to be present when the offers are being discussed.

3. If one of the buyers is the wife of an Ontario real estate registrant (unrelated to this transaction), the wife must make an additional disclosure.

4. The $475,000 offer shouldn't be presented as better offers are on the table.

5. All offers should be netted down to cash equivalents.

6. Offers with similar values but different terms should be weighted equally.

The correct answer is: A representative from the listing brokerage needs to be present when the offers are being discussed.

The correct choice is that a representative from the listing brokerage needs to be present when the offers are being discussed. This requirement is in place to ensure that the process of presenting and discussing offers is conducted fairly and transparently. The presence of the listing agent is crucial as they can provide context, answer questions, and ensure that the seller understands the implications of each offer. They also help maintain the integrity of the process by facilitating communication and negotiation between the seller and potential buyers. In contrast, many of the other choices suggest practices that do not align with industry standards. For instance, presenting offers in the order received can be misleading, as the terms of the offers should also be considered, not just their sequence of submission. Similarly, discussing the quality and terms of offers is more important than merely ranking offers by value. This ensures a more holistic approach to evaluating what is best for the seller.