Humber/Ontario Real Estate Course 2 Exam Practice

Salesperson Lee drafts an agreement for a buyer interested in an estate property with three trustees. What should Lee do?

1. Ensure at least two trustees sign the agreement.

2. Verify with the estate's lawyer who must sign the agreement.

3. Ensure one trustee signs on behalf of the estate.

4. Have the lawyer sign the agreement since trustees can only sign listing agreements.

5. Consult with the local real estate board for guidance.

6. Allow the buyer to decide how many signatures are needed.

The correct answer is: Verify with the estate's lawyer who must sign the agreement.

In this scenario, the correct choice is to verify with the estate's lawyer who must sign the agreement. When dealing with property held in trust, it is crucial to understand the legal requirements regarding signatures on agreements. Trusts can vary in their structure and requirements, so it is essential to consult with the estate's lawyer to ensure that the agreement is signed correctly and legally binding. Option A is incorrect because the number of trustees who must sign the agreement may vary depending on the specific trust agreement in place. Option C is incorrect as having only one trustee sign on behalf of the estate may not be sufficient or in compliance with the trust's rules. Option D is incorrect as trustees can sign agreements related to the trust, not just listing agreements. Option E is also incorrect as the local real estate board may not have the specific knowledge or information about the estate's requirements. Lastly, option F is incorrect because the decision on how many signatures are needed should not be left solely to the buyer but should be determined based on legal and trust requirements.