Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following statements is correct regarding accepted offers?

1. Summary documents for accepted offers must be kept by a brokerage for six years.

2. Both accepted and unsuccessful offers must be kept by a brokerage for six years.

3. Accepted offers must be kept by a brokerage for six years.

4. Brokerages representing sellers must retain accepted offers for three years.

The correct answer is: Accepted offers must be kept by a brokerage for six years.

The statement that accepted offers must be kept by a brokerage for six years is correct because it aligns with the regulations governing the retention of real estate documents. In Ontario, brokerages are required to maintain proper records of accepted offers to ensure compliance with legal and regulatory standards. This six-year retention period is significant as it covers the duration during which disputes or inquiries may arise regarding the transaction, enabling a clear and accessible record for reference. The importance of retaining accepted offers lies in the necessity for transparency and accountability in real estate transactions. Such documentation can be crucial in case of audits, disputes, or potential legal issues that may come up well after the transaction has been completed. The other options present variations of the requirement that do not accurately reflect the specific regulations. For example, while it might seem reasonable for brokerages to keep unsuccessful offers, the law primarily mandates the retention of accepted offers for the specified period. Thus, the focus on accepted offers showcases the central role they play in completed transactions.