Humber/Ontario Real Estate Course 2 Exam Practice

Which statement accurately describes a Buyer Representation Agreement?

1. The agreement is only applicable to purchasing property, not leasing property

2. Remuneration rates for agreements involving certain properties are set by a government authority

3. The preprinted clauses cannot be altered by the parties involved

4. The agreement stipulates that the buyer agrees to pay remuneration unless otherwise specified

5. The buyer is obligated to use the same brokerage for all future real estate purchases

6. Buyer consent must be renewed annually once an agreement is signed

The correct answer is: The agreement stipulates that the buyer agrees to pay remuneration unless otherwise specified

A Buyer Representation Agreement is a contract between a buyer and a real estate brokerage, outlining the terms and conditions under which the brokerage will represent the buyer in a real estate transaction. The correct statement that accurately describes a Buyer Representation Agreement is that the agreement stipulates that the buyer agrees to pay remuneration unless otherwise specified. This means that unless there is a specific provision in the agreement stating otherwise, the buyer is obligated to compensate the brokerage for their services. The other options are incorrect for the following reasons: A. The agreement can be applicable to both purchasing and leasing property, not just purchasing. B. Remuneration rates are typically agreed upon between the buyer and the brokerage, not set by a government authority. C. The preprinted clauses in a Buyer Representation Agreement can be altered by the parties involved to reflect their specific agreement. E. The buyer is not obligated to use the same brokerage for all future real estate purchases unless specified in a separate agreement. F. Buyer consent does not need to be renewed annually once the agreement is signed; it remains in effect until the terms of the agreement have been fulfilled or the agreement is terminated.