Humber/Ontario Real Estate Course 3 Exam Practice

When listed under an 'a la carte' listing agreement, what is the nature of the fees charged by the brokerage?

1. Fees are based on a percentage of the sale price.

2. A flat rate calculated based on individual services performed.

3. Brokerage charges hourly rates for property management instead of flat fees.

4. Brokerages cannot utilize flat-rate fees as per REBBA regulations.

5. Fees include additional contingency costs for unexpected services.

6. Fees are subject to change based on sales results.

The correct answer is: Brokerages cannot utilize flat-rate fees as per REBBA regulations.

The correct answer is that, under an 'a la carte' listing agreement, the fees charged by the brokerage are typically a flat rate calculated based on individual services performed. This type of agreement allows clients to select specific services they need, and the brokerage charges a fee for those individually chosen services rather than a commission based on the sale price. In the context of the other options, fees are not typically based on a percentage of the sale price; rather, clients pay for specific services they opt into. While some brokerages may charge hourly rates for property management or other services, this is not the general nature of fees under an 'a la carte' model. Furthermore, REBBA regulations do not prohibit brokerages from utilizing flat-rate fees; they are entirely permissible as long as they are disclosed properly. Additionally, fees under this model are not typically subject to change based on sales results since they are predetermined based on the selected services rather than contingent on the final sale price.