Humber/Ontario Real Estate Course 3 Exam Practice

Why might a selling brokerage claim remuneration during a holdover period?

1. Because the property was listed during the introduction

2. Because the property sold during the holdover period

3. Because the buyer initiated contact after the BRA expired

4. Because another brokerage handled the final agreement

5. Because the introduction occurred before the expiration

6. Because the seller contacted the original agent during the duration

The correct answer is: Because the property sold during the holdover period

The correct choice is that a selling brokerage might claim remuneration during a holdover period because the property sold during that specific period. In the context of real estate, a holdover period is typically referenced in a listing agreement where the brokerage is entitled to a commission on the sale of a property if the transaction occurs after the agreement has ended but within a specified timeframe. This means that if the property indeed sold during the holdover period, the brokerage has a legitimate claim to remuneration based on the work and services they provided prior to the expiration of the listing agreement. In scenarios where the property was sold due to the efforts of the brokerage before the listing agreement expired, or if the seller had contacted the original agent, those situations could also suggest grounds for the brokerage to seek compensation. However, if the transaction takes place while the holdover clause is still active, it solidifies their entitlement. The other options do not accurately address why a claim for remuneration would be made specifically during the holdover period, as they either reference actions that do not directly relate to the timing of a sale or imply that other parties or processes, such as a different brokerage, were involved in the final agreement.