Humber/Ontario Real Estate Course 2 Exam Practice

Remuneration to a brokerage is typically paid when:

1. The signed agreement is processed.

2. The transaction closes.

3. The buyer agrees to the terms of sale.

4. The initial offer is accepted.

5. The buyer acquires financing.

6. The final inspection clears.

The correct answer is: The transaction closes.

Remuneration to a brokerage is typically paid when the transaction closes. This means that the real estate transaction has been completed, and all the necessary steps, such as signing the final documents and transferring ownership, have been finalized. At this point, the brokerage has fulfilled its duties in facilitating the sale or purchase of the property, making it the appropriate time for them to receive their payment for their services. The other options are not the correct times for remuneration to be paid to the brokerage. For example: - A signed agreement being processed or the buyer agreeing to the terms of sale are part of the initial stages of the transaction and do not signify its completion. - The initial offer being accepted is a step within the negotiation process, but not necessarily when the transaction is finalized. - The buyer acquiring financing or the final inspection clearing are important steps in the process, but the payment to the brokerage typically occurs after the transaction has been successfully completed by closing.