Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT a similarity between a buyer representation agreement and a seller representation agreement?

1. Both forms include commencement and expiry dates.

2. Both types of agreements set out disclosure requirements regarding finder's fees.

3. Both contain a general description of property type.

4. Both discuss the distribution of information.

5. Both have clauses related to commission payable.

6. Both address the agency relationship with clients.

The correct answer is: Both contain a general description of property type.

The correct answer highlights that while both buyer representation agreements and seller representation agreements share many features, they differ in the specific details tailored to their respective contexts. While a buyer representation agreement focuses on the buyer's search for properties, the seller representation agreement is centered around marketing and selling a specific property. Therefore, the descriptions of property types may vary significantly based on whether the agreement pertains to a buyer looking for various options or a seller with a specific property in mind. The other options point to common elements found in both types of agreements. Both forms indeed include commencement and expiry dates, which establish the timeframe during which the agreements are valid. They also typically discuss disclosure requirements regarding finder's fees, ensuring transparency about any compensations that may arise during the transaction. Each agreement outlines how information will be distributed, which is essential for effective communication between parties involved. They contain clauses related to commission payable, as compensation structure is vital in both scenarios, and lastly, both agreements outline the nature of the agency relationship established, affirming the fiduciary duty owed by the agent to their client.