Humber/Ontario Real Estate Course 2 Exam Practice

If a buyer has not signed a representation agreement but wants to make an offer, what must Salesperson Michelson do?

1. As no representation agreement is signed, treat the buyer as a customer.

2. Prepare and sign a representation agreement and review it with the buyer before making the offer.

3. Proceed to prepare the offer as long as verbal disclosures are made.

4. The buyer can refuse to sign a representation agreement and opt for a customer service agreement.

5. The buyer is automatically considered a customer without a signed representation agreement.

6. Provide all MLS details of the property to the buyer.

The correct answer is: Prepare and sign a representation agreement and review it with the buyer before making the offer.

When a buyer has not signed a representation agreement but wants to make an offer, the appropriate course of action for Salesperson Michelson is to prepare and sign a representation agreement and review it with the buyer before making the offer. This is crucial to ensure that both parties are clear on their rights and obligations in the transaction. By having a signed representation agreement in place, the salesperson is establishing a formal agency relationship with the buyer, outlining important details such as duties, responsibilities, and compensation. This step helps protect the interests of both the buyer and the salesperson and ensures a clear understanding of the relationship between them during the real estate transaction. In contrast, the other options are not the best course of action in this scenario: - Option A is incorrect because it suggests treating the buyer as a customer without a representation agreement, which may not provide the necessary legal protections and clarity. - Option C is not recommended because verbal disclosures may not be sufficient to protect the interests of both parties in the absence of a signed representation agreement. - Option D mentions a customer service agreement, which is not the standard approach in this situation. - Option E assumes the buyer is automatically considered a customer, which may not be in line with the expectations and legal requirements of establishing a formal agency relationship. - Option F is not necessary for preparing an offer and may not be appropriate without a signed representation agreement in place.