Humber/Ontario Real Estate Course 3 Exam Practice

What must a seller’s brokerage retain if an offer submitted by a buyer's salesperson is unsuccessful?

1. Must retain a copy of that offer in its entirety.

2. Can keep a summary document of that offer for a minimum of six months.

3. Must retain the summary document and the offer in its entirety for a one-year period.

4. Must retain either a summary document pertaining to that offer or the offer in its entirety for a one-year period.

The correct answer is: Must retain the summary document and the offer in its entirety for a one-year period.

The correct choice emphasizes that a seller’s brokerage has specific requirements regarding document retention for offers that are not accepted. In Ontario real estate practice, failing to accept an offer submitted by a buyer’s salesperson obliges the seller’s brokerage to maintain a record of that offer. This is crucial for maintaining transparency and accountability in real estate transactions. Retaining both the summary document and the offer in its entirety for a full year provides essential documentation in case of future disputes or inquiries into the transaction. The year-long retention period aligns with regulatory standards to ensure that real estate professionals have access to important information that could affect compliance or legal matters. This practice also serves as a safeguard, allowing brokerages to provide proof of the offer and its terms, should the need arise for reference or verification. It demonstrates the importance of meticulous record-keeping in the real estate industry to uphold ethical practices and protect the interests of all parties involved.