Humber/Ontario Real Estate Course 2 Exam Practice

Which stipulation must be met for a seller customer service agreement?

1. Includes effective date, expiry date, and remuneration details

2. Must be reviewed and renewed every year

3. Contains only an expiry date and remuneration sections

4. Includes a disclaimer for property condition

5. Requires no specific details according to regulations

6. Must be signed by both parties and notarized

The correct answer is: Includes effective date, expiry date, and remuneration details

For a seller customer service agreement to be valid and enforceable, it must include essential details such as the effective date, expiry date, and remuneration details. These key elements outline the duration of the agreement, the terms under which the real estate services will be provided, and the compensation due to the real estate professional for their services. By including these specific details in the agreement, both parties have a clear understanding of their obligations and responsibilities, helping to prevent misunderstandings or disputes in the future. Option B is incorrect as there is no regulatory requirement for the seller customer service agreement to be reviewed and renewed every year. Option C is incorrect as including only an expiry date and remuneration sections may not provide sufficient details to protect both parties' interests adequately. Option D is incorrect as a disclaimer for property condition is not typically a requirement in a seller customer service agreement but rather in a property disclosure statement or other related documents. Option E is incorrect as specific details, such as the effective date, expiry date, and remuneration details, are necessary to ensure the agreement's clarity and enforceability. Option F is incorrect as seller customer service agreements do not typically need to be notarized for validity. Simply having both parties sign the document is usually sufficient to make the agreement legally binding.