Humber/Ontario Real Estate Course 3 Exam Practice

Why might a new real estate salesperson experience a delay in earning remuneration?

1. A time delay of two or three months normally exists between an agreement being signed and the transaction closing.

2. A new salesperson typically does not receive remuneration until six months after registration.

3. The brokerage does not normally pay the remuneration until several months after it is received.

4. The seller usually delays payment of remuneration until well after the transaction closes.

The correct answer is: A new salesperson typically does not receive remuneration until six months after registration.

A new real estate salesperson might experience a delay in earning remuneration because typically, they do not receive any remuneration until six months after they have been registered. This delay is due to the time it takes for them to build their client base, secure listings, negotiate deals, and complete transactions, which can often take several months. During this initial period, new salespeople may be investing time and effort into various aspects of the real estate business without seeing immediate financial returns. Option A is not the correct answer because a two to three months delay between agreement signing and transaction closing is a normal part of the process but does not explain the delay in earning remuneration for a new salesperson. Options C and D are also not accurate as the delay in earning remuneration for a new salesperson is not typically related to when the brokerage pays out remuneration or when sellers make payment after a transaction closes.