Humber/Ontario Real Estate Course 3 Exam Practice

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Which statement is correct when describing property in a buyer representation agreement?

  1. The buyer does not need to inform the brokerage of any suitable property found

  2. The description might involve just a specific address for one property

  3. A buyer can sign with multiple brokerages for the same time period

  4. The salesperson should avoid using municipal boundaries

  5. The agreement automatically renews annually

  6. Only commercial properties need detailed descriptions

The correct answer is: The description might involve just a specific address for one property

The statement that the description might involve just a specific address for one property is correct because a buyer representation agreement often includes a specific property that the buyer is interested in. This level of detail in the description can help clarify which property the buyer is considering and allows the brokerage to act effectively on behalf of the buyer in negotiations or discussions about that particular property. In practice, buyer representation agreements can vary widely in how they describe the properties involved. Some may specify multiple properties or a range of properties, while others may focus very specifically on one particular address. This flexibility is important for ensuring that the agreement accurately reflects the buyer's intent and the transaction's context. The other aspects relevant to this question, such as focusing only on municipal boundaries, the scope of signing with multiple brokerages, renewals, and the need for detailed descriptions for commercial properties, do not pertain as directly to the core understanding of how buyers and brokerages interact concerning specific properties within a representation framework. By emphasizing specificity, as in the correct answer, the representation agreement ensures clarity and effectiveness in the buyer's relationship with their brokerage.