Humber/Ontario Real Estate Course 2 Exam Practice

What does a potential buyer need to understand about ownership transfer during the holdover period?

1. Holdover period negates remuneration

2. Obligated to pay through initial brokerage

3. Responsible for remuneration if criteria are met

4. No obligation if variance is set

5. Action voids representation agreement

6. New brokerage assumes all responsibilities

The correct answer is: Responsible for remuneration if criteria are met

During the holdover period, a potential buyer needs to understand that they may be responsible for remuneration if certain criteria are met. This means that even after the expiration of the representation agreement with the initial brokerage, if the buyer ends up purchasing a property that was introduced to them during the holdover period, they may still be obligated to pay the original brokerage. It's crucial for buyers to be aware of this potential financial obligation to avoid any misunderstandings or legal disputes. Option A is incorrect because the holdover period does not automatically negate the right to remuneration for the original brokerage. Option B is also incorrect as the buyer's responsibility for remuneration may extend beyond the initial brokerage if specific conditions are met. Option D is irrelevant to the concept of ownership transfer during the holdover period. Similarly, option E is not a standard outcome of the holdover period. Option F is also incorrect because the new brokerage does not automatically assume all responsibilities during the holdover period.