Humber/Ontario Real Estate Course 2 Exam Practice

What is Buyer Randall's obligation to ABC Realty Inc. when purchasing during a holdover period?

1. Randall owes no remuneration as the sale closed after the holdover period expired

2. Randall owes no remuneration because he found the property post-agreement expiry

3. Randall owes remuneration because he discovered the property during the holdover period

4. Randall must notify ABC Realty Inc. of any properties discovered during the agreement period

5. Randall must pay because the holdover period applies regardless of when he found the property

6. Randall owes full commission regardless of the discovery period

The correct answer is: Randall owes no remuneration because he found the property post-agreement expiry

During a holdover period, the buyer, Randall, is not obligated to provide remuneration to ABC Realty Inc. in this scenario because Randall found the property after the agreement expiry. Holdover periods typically refer to a period after an agreement has expired where the agent may still be entitled to commission if the property is sold to a buyer who was introduced to the property during the listing agreement period. Since Randall discovered the property post-agreement expiry, he is not required to pay remuneration to the realty company. Options A, C, E, and F are incorrect because they do not accurately reflect Randall's obligation in this situation. Option D is also incorrect as it does not pertain to the specific scenario described in the question.