Humber/Ontario Real Estate Course 2 Exam Practice

Salesperson Novelo wants to transfer commercial clients to a new brokerage. What must occur?

1. Must terminate existing agreements and sign new ones with the new brokerage for all clients.

2. Assigning agreements is internal; client involvement is unnecessary.

3. Partial client transfers aren't allowed; all agreements must move to the new brokerage.

4. The current brokerage can transfer clients provided they agree to the change.

5. Clients must approve any changes via a vote or formal meeting.

6. No formalities are required if both brokerages mutually agree.

The correct answer is: The current brokerage can transfer clients provided they agree to the change.

In this scenario, the correct answer is D, as the transfer of clients from one brokerage to another requires the clients' agreement to the change. It is crucial that a client's consent is obtained before transferring them to a new brokerage, as clients have the right to choose the professionals they want to work with. This ensures that the clients are aware of and agree to the change in representation. Options A, B, C, E, and F are incorrect because they do not take into consideration the client's role in the process. The client's approval is necessary in transferring commercial clients from one brokerage to another in real estate transactions.