Humber/Ontario Real Estate Course 3 Exam Practice

What is a required action if Buyer Batara agrees to a seven month buyer representation agreement with Salesperson Marshall?

1. Salesperson Marshall, according to the REBBA Code of Ethics, must obtain his broker of record's approval for any buyer representation agreement exceeding six months

2. Buyer Batara must affix his initials below the expiry date line

3. Salesperson Marshall must have Buyer Batara sign a separate disclosure acknowledging that the term exceeds six months

4. Salesperson Marshall, according to the REBBA Code of Ethics, cannot take a buyer representation agreement that exceeds six months

5. Buyer Batara must notarize the agreements signature page

6. Marshall must execute a power of attorney document to extend the agreement beyond six months

The correct answer is: Buyer Batara must affix his initials below the expiry date line

Buyer Batara must affix his initials below the expiry date line to acknowledge his understanding and acceptance of the terms of the buyer representation agreement. This action foster clarity and transparency between the buyer and the salesperson, ensuring that both parties are aware of and agree on the duration of the relationship. It serves as a safeguard measure for both the buyer and agent, helping to prevent any potential disputes in the future regarding the understanding of the agreement's duration. In this context, adding initials signifies that Buyer Batara has reviewed and consented to the specific details of the agreement, including the expiration timeframe. Having good documentation practices is essential in real estate transactions and helps to streamline the processes in the agreement, making expectations clear for both the buyer and salesperson.