Humber/Ontario Real Estate Course 2 Exam Practice

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How is remuneration to be handled when there is a holdover provision and the property is sold by a different brokerage?

  1. Buyer owes remuneration to the second brokerage only

  2. Buyer pays 4.0% to the second brokerage; any deficiency must be paid to the first brokerage

  3. Second brokerage must refuse remuneration due to the holdover provision

  4. Remuneration is covered solely by the first brokerage

  5. The seller pays remuneration in this scenario

  6. Brokerage B must pay a referral fee to Brokerage A

The correct answer is: Buyer owes remuneration to the second brokerage only

When there is a holdover provision in place and the property is subsequently sold by a different brokerage, the correct handling of remuneration is that the buyer owes remuneration to the second brokerage only. This means that the compensation for the real estate transaction is to be paid to the brokerage that represents the buyer in the current sale, which is the second brokerage in this scenario. The other options are incorrect because they do not align with the typical procedures in real estate transactions involving a holdover provision and the involvement of multiple brokerages. It is important to understand the arrangements and obligations in such situations to ensure transparency and proper compensation distribution among the involved parties.

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