Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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If Seller Alvarez re-lists her property after the expiry of her initial listing and sells it within the holdover period, is her previous brokerage owed remuneration?

  1. Yes, ABC Realty Inc. is owed 2.5% since the property was introduced during their listing period.

  2. No, holdover provisions do not apply if the property is relisted with another brokerage.

  3. No, ABC Realty is not owed remuneration because the new listing brokerage had a higher remuneration rate.

  4. Yes, the holdover provision applies and ABC Realty Inc. is owed 5% because the property was introduced during their listing period.

  5. Only the new listing brokerage is entitled to remuneration.

  6. Remuneration is shared equally between ABC Realty Inc. and the new brokerage.

The correct answer is: Yes, the holdover provision applies and ABC Realty Inc. is owed 5% because the property was introduced during their listing period.

In this scenario, the correct answer is D. This is because the holdover provision in real estate applies when the seller relists the property after the expiration of the initial listing period and then sells the property within the holdover period. According to the holdover provision, if the property is introduced to the buyer during the initial listing period, the original listing brokerage (ABC Realty Inc. in this case) is still entitled to remuneration even if the property is sold after the listing agreement has expired. In this situation, Seller Alvarez re-listed her property and sold it within the holdover period, which means that the previous brokerage, ABC Realty Inc., is owed remuneration, as the property was introduced to the buyer during their listing period. Therefore, option D is the correct choice because it accurately reflects the application of the holdover provision in this scenario.

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