Humber/Ontario Real Estate Course 3 Exam Practice

When would Buyer Lopez need to pay remuneration during the listing period?

1. If the property offers a 3% remuneration rate by the listing brokerage to the cooperating brokerage.

2. If the property offers a 2% remuneration rate by the listing brokerage to the cooperating brokerage.

3. If the property purchased was a private sale with the seller agreeing to pay 2.5% remuneration.

4. Buyer Lopez will never pay remuneration as the seller covers all brokerages' fees.

The correct answer is: If the property offers a 2% remuneration rate by the listing brokerage to the cooperating brokerage.

The correct choice highlights a scenario where Buyer Lopez would need to pay remuneration to the brokerage during the listing period based on the specific remuneration rate offered by the listing brokerage to the cooperating brokerage. In this context, if the property is listed with a 2% remuneration rate, and this is less than what may be typically expected in the market or not sufficient to attract Buyer Lopez's chosen brokerage, he might be responsible for making up the difference to ensure his realtor is compensated fairly. It's essential to understand that remuneration rates set by the listing brokerage can vary, and if the amount offered is lower than what Buyer Lopez's brokerage is willing to accept, it creates a situation where he may need to cover that shortfall. This is particularly relevant when a buyer is working with a brokerage that expects a certain level of compensation for their services. In contrast, if a property offers a higher remuneration percentage, such as 3%, or if there is a private sale scenario where a commission might be agreed upon directly with the seller (for example, 2.5%), those situations may not necessitate additional payment from Buyer Lopez since they either meet or exceed common remuneration expectations. Additionally, it's important to note that if the seller covers all brokerage fees, Buyer Lopez would not