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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Mr. and Mrs. Lopez are reviewing the details of a seller representation agreement. Mrs. Lopez is particularly concerned about the holdover provision. She worries they might have to pay fees to two brokerages if the property is sold by another brokerage during the holdover period to someone introduced during the original listing period. Which statement is accurate?

Mr. and Mrs. Lopez's responsibility to pay fees under the holdover clause is limited to a maximum 30-day period after the listing expires, as stated by REBBA.
Mr. and Mrs. Lopez's obligation to pay fees in this circumstance is decreased by the amount paid to another brokerage during the holdover period.
The Lopez's would not be required to pay fees to both brokerages if another brokerage lists and sells the property to a person introduced during the initial listing period.
The holdover provision and any fee obligation would only apply if the property was shown to an individual during the initial listing period and that person then buys directly from the seller during the holdover period.

The correct answer is: Mr. and Mrs. Lopez's obligation to pay fees in this circumstance is decreased by the amount paid to another brokerage during the holdover period.

The correct answer is B because it accurately reflects the situation regarding the holdover provision in a seller representation agreement. In this scenario, if another brokerage lists and sells the property to someone introduced during the original listing period while the holdover period is in effect, the amount paid to the second brokerage would decrease Mr. and Mrs. Lopez's obligation to pay fees to the first brokerage. Option A is incorrect because under REBBA, the holdover period for fee obligations is not limited to a maximum of 30 days after the listing expires. Option C is incorrect because in the situation described, Mr. and Mrs. Lopez could potentially be required to pay fees to both brokerages, depending on the terms of the agreements and any applicable laws or regulations. Option D is incorrect because the holdover provision and fee obligation typically do not hinge on the specific circumstances of a person being shown the property during the initial listing period and then buying directly from the seller during the holdover period.