Humber/Ontario Real Estate Course 3 Exam Practice

Under what circumstance can the brokerage pursue the seller for remuneration if the seller refuses to close after accepting an offer?

1. If the buyer defaults

2. If the purchase price is over $500,000

3. If the sale involved a single family home

4. If the seller's refusal is due to seller's default or neglect

5. If the sale is in a rural area

6. If the brokerage has only listed one property for the seller

The correct answer is: If the seller's refusal is due to seller's default or neglect

If the seller refuses to close after accepting an offer, the brokerage can pursue the seller for remuneration if the seller's refusal is due to the seller's default or neglect. In this situation, the seller is backing out of the transaction not due to any fault on the buyer's side but because of their own actions or negligence. As a result, the brokerage may be entitled to seek compensation for their time and effort put into the transaction. Options A, B, C, E, and F are incorrect as they do not relate to the specific circumstance where the seller's refusal to close can lead to the brokerage pursuing the seller for remuneration. Option A talks about the buyer defaulting, which is a different scenario. Option B mentions a specific purchase price, which is not relevant in this context. Option C specifies a single-family home, which does not determine the brokerage's ability to seek remuneration. Option E talks about a rural area, which is also not a determining factor. Finally, Option F discusses the number of properties listed by the seller, which is not relevant to the seller's refusal to close.