Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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What is true about a holdover clause in a seller representation agreement with a brokerage?

The purchaser is protected.
Seller Ganim.
The salesperson representing the buyer.
ABC Realty Inc.
The buyer who may buy the property later.
The lending institution.

The correct answer is: ABC Realty Inc.

A holdover clause in a seller representation agreement with a brokerage refers to a clause that states the brokerage will still be entitled to their commission if a buyer who was introduced to the property during the period of the agreement decides to purchase the property after the agreement has ended. This is designed to protect the brokerage from being cut out of the sale after putting in time and resources to market the property. Options A, C, E, and F are incorrect because they refer to parties that do not have any legal standing in a holdover clause. The purchaser, salesperson representing the buyer, the buyer who may buy the property later, and the lending institution are not directly involved in the seller representation agreement and therefore do not have any protection or obligations under a holdover clause. Option B, "Seller Ganim", is also incorrect because it does not make logical sense in the context of a holdover clause. It is likely a typo or mistake unrelated to the question. Choosing option D, "ABC Realty Inc.", is the correct answer because it appropriately identifies the party that has obligations and a potential legal recourse in a holdover clause.