Humber/Ontario Real Estate Course 2 Exam Practice

If Buyer Lee signed a buyer representation agreement and made an offer directly to a seller on a 'For Sale by Owner' townhouse after the agreement expired, what is the remuneration obligation to the brokerage?

1. Yes. Buyer Lee purchased a property that meets the property type and location and was also purchased within the holdover period.

2. No. Buyer Lee is only obligated to pay remuneration if the brokerage showed the FSBO to Lee during the term of the buyer representation agreement.

3. Yes. Remuneration would be owed because Buyer Lee bought a condominium townhouse and that type of property was specifically described in the buyer representation agreement.

4. No. Buyer Lee, purchased a condominium townhouse and not a condominium high-rise, and therefore no remuneration is owed.

The correct answer is: No. Buyer Lee, purchased a condominium townhouse and not a condominium high-rise, and therefore no remuneration is owed.

In this scenario, the correct answer is D. Buyer Lee is not obligated to pay remuneration to the brokerage because the property purchased was a condominium townhouse, and not a condominium high-rise as specified in the original buyer representation agreement. The agreement had expired before Lee made an offer on the 'For Sale by Owner' townhouse, which means that the brokerage is not entitled to remuneration for this transaction. It's essential to note that remuneration obligations are typically tied to the specific terms outlined in the buyer representation agreement, and in this case, since the property type did not match what was outlined in the agreement, the brokerage is not entitled to remuneration.