Humber/Ontario Real Estate Course 3 Exam Practice

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What remuneration, if any, is owed to XYZ Realty Inc. regarding the transaction involving Buyer Adkins?

  1. Remuneration of 2% to XYZ Realty Inc. based on the purchaser's agreement.

  2. Remuneration of 3% to XYZ Realty Inc. due to dual representation of the seller.

  3. Remuneration of 4% is due to XYZ Realty Inc. as per the listing agreement.

  4. Remuneration of 5% because XYZ Realty Inc. was involved in introducing the buyer on June 17.

  5. XYZ Realty Inc. is owed no remuneration as the sale was not completed through their brokerage.

  6. No remuneration to be paid as per the revised listing agreement.

The correct answer is: Remuneration of 4% is due to XYZ Realty Inc. as per the listing agreement.

The reasoning behind the selection of the remuneration of 4% due to XYZ Realty Inc. as specified in the listing agreement stems from the foundational principles of real estate transactions related to agency and contractual obligations. A listing agreement typically outlines the compensation structure for the brokerage representing the seller, and this agreement serves as a legal contract binding all parties involved. When a sale occurs, the terms laid out in the listing agreement dictate the remuneration owed to the broker. In this case, the listing agreement clearly states that XYZ Realty Inc. is entitled to 4% as specified within its terms. This solidifies their role in representing the seller and entitles them to the agreed-upon commission if the sale of the property was completed through their efforts. Other options suggest alternative percentages or circumstances for remuneration, such as dual representation or the introduction of the buyer, but these do not align with the actual contractual agreement established in the listing agreement. Therefore, the 4% remuneration based on the original listing agreement is the correct interpretation of the compensation owed to XYZ Realty Inc. in this scenario.

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