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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Salesperson Alex's buyer client signs a buyer representation agreement at a 6.0% remuneration rate but is shown a property listed with her brokerage at a 5% remuneration rate. Given a sale price of $340,000, what should be the total remuneration?

The brokerage should receive a total remuneration of $20,400
The total remuneration that Salesperson Alex's employing brokerage could potentially receive for this transaction is $17,000
The buyer would not owe any remuneration to Salesperson Alex's employing brokerage, as the seller is paying the full remuneration
The total remuneration that Salesperson Alex's employing brokerage could potentially receive for this transaction is $8,500

The correct answer is: The buyer would not owe any remuneration to Salesperson Alex's employing brokerage, as the seller is paying the full remuneration

In this scenario, the correct answer is C because when the buyer signs a buyer representation agreement with Salesperson Alex at a 6.0% remuneration rate and is shown a property listed with the same brokerage at a 5% remuneration rate, it indicates that the seller is responsible for paying the full remuneration. This means that the buyer would not owe any remuneration to Salesperson Alex's employing brokerage, as the seller covers the remuneration as agreed upon in the listing agreement. Therefore, the total remuneration in this case would come from the seller's side, and the buyer would not need to pay any additional fees. Regarding the other options: Option A states that the brokerage should receive a total remuneration of $20,400, which is not accurate in this situation as the buyer is not responsible for the remuneration in this case. Option B suggests that the total remuneration that Salesperson Alex's employing brokerage could potentially receive for this transaction is $17,000, which is not correct since the buyer is not required to pay the remuneration. Option D indicates that the total remuneration that Salesperson Alex's employing brokerage could potentially receive for this transaction is $8,500, which is also incorrect as it does not consider the seller's obligation to pay the remuneration.