Humber/Ontario Real Estate Course 1 Exam Practice

According to REBBA, what are the options for remuneration in a buyer representation agreement?

1. The 3% remuneration can be paid to the brokerage and the $2,000 paid directly to Salesperson Splitter.

2. Remuneration can be an agreed flat fee and/or a percentage of the sale/rental price.

3. A real estate brokerage can charge an agreed flat fee or a percentage of sale/rental price, but not both.

4. An agreed flat fee is not permitted, only a percentage of the sale price.

The correct answer is: Remuneration can be an agreed flat fee and/or a percentage of the sale/rental price.

In a buyer representation agreement according to REBBA (Real Estate and Business Brokers Act), the options for remuneration can vary. The correct answer, which is option B, states that remuneration can be an agreed flat fee and/or a percentage of the sale/rental price. This means that in a buyer representation agreement, the remuneration structure is flexible and can be based on a flat fee, a percentage of the sale price, or a combination of both, as agreed upon between the buyer and the real estate brokerage. Options A, C, and D are incorrect because they do not fully represent the flexibility allowed in remuneration options under REBBA. Option A suggests a specific division of remuneration that may not align with the agreed terms. Option C incorrectly limits the brokerage to charge either a flat fee or a percentage, when in reality, they can charge either individually or both. Option D inaccurately states that an agreed flat fee is not permitted, which is not the case as it is one of the valid remuneration options under REBBA.