Humber/Ontario Real Estate Course 3 Exam Practice

What is required when retaining copies of offers?

1. The co-operating brokerage must keep an unsuccessful buyer's offer that was rejected.

2. The listing brokerage may retain a summary document for all unsuccessful offers.

3. An unsuccessful counter offer by the seller must be kept for one year.

4. A seller's counter offer must be kept by the co-operating brokerage representing the buyer.

5. All rejected offers need to be filed by the listing brokerage.

6. A successful offer must be retained for a minimum of two years.

The correct answer is: An unsuccessful counter offer by the seller must be kept for one year.

The requirement to keep an unsuccessful counter offer made by the seller for one year is rooted in best practices for documentation in real estate transactions. Retaining this documentation is essential for several reasons: it ensures that there is a clear record of the negotiations and communications that took place, which can be useful for both legal and ethical considerations. Keeping these documents allows both the broker and the client to have insight into the decision-making process and to revisit the context of the offer should any disputes arise in the future. Moreover, the one-year retention aligns with standard regulatory practices that mandate documentation for a certain period, thus promoting accountability and transparency in the real estate process. This one-year timeframe is particularly important, as it affords enough time for any potential claims or issues related to the transaction to arise, ensuring that the parties involved can effectively respond. In contrast, while other options might mention different requirements regarding offers and documentation, they do not align with the established norms within the real estate industry regarding the specific retention policies for counter offers and their necessary documentation.