Humber/Ontario Real Estate Course 3 Exam Practice

What must be included in a custom 'seller representation agreement' as per REBBA Code of Ethics?

1. A holdover clause limited to six months.

2. Describing the services provided by the brokerage.

3. Clause detailing 'Use and Distribution of Information' such as permission to publish property photos.

4. Clause mandating seller to forward all buyer inquiries to the brokerage.

5. Details of brokerage commission structure.

6. Requirement of bi-weekly updates on property status.

The correct answer is: Describing the services provided by the brokerage.

The inclusion of a description of the services provided by the brokerage in a custom seller representation agreement is essential as it ensures transparency and clarity regarding the expectations and responsibilities of the brokerage. This aligns with the REBBA Code of Ethics, which emphasizes the necessity for brokerages to communicate effectively about the nature of the services they offer to their clients. By specifying the services, both the seller and the brokerage have a mutual understanding of what is being provided, which helps to foster trust and a collaborative relationship throughout the transaction process. The other options, while they may contain beneficial practices or considerations, do not capture the fundamental requirement of what must be explicitly included in such an agreement under the REBBA Code. For example, while details about holdover clauses, commission structures, and updates can be relevant in certain contexts, they are not universally mandated components of the essential agreement. Additionally, clauses pertaining to buyer inquiries and the use of information might be standard practices but are not explicitly required under the Code like the description of services is.