Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following is NOT a correct statement regarding agreements signed with buyers and sellers?

1. An agreement of purchase and sale is referred to in REBBA as an agreement for the conveyance of an interest in real estate.

2. An agreement of purchase and sale is referred to in REBBA as an agreement for the purpose of trading.

3. A customer service agreement is referred to in REBBA as an agreement for the purpose of trading.

4. A listing agreement is referred to in REBBA as an agreement for the purpose of trading.

The correct answer is: A customer service agreement is referred to in REBBA as an agreement for the purpose of trading.

In the context of real estate and the regulations set out by the Real Estate and Business Brokers Act (REBBA), it's important to understand the definitions and classifications of various agreements. The assertion that a customer service agreement is referred to in REBBA as an agreement for the purpose of trading is not accurate. Customer service agreements generally outline the terms under which a brokerage or agent provides services to a customer, but they are not classified under REBBA as agreements for the purpose of trading in real estate. Instead, trading refers specifically to activities that involve the buying, selling, or leasing of real estate and is usually associated with formal agreements such as the agreement of purchase and sale or listing agreements. In contrast, other agreements mentioned, such as the agreement of purchase and sale or listing agreements, have clear definitions and are classified as agreements for trading purposes under REBBA. This differentiation is crucial in ensuring that all parties involved in real estate transactions understand their rights and obligations and that compliance with the regulations is maintained. The customer service agreement does not fall within this trading category, which makes the statement about it being referred to as such incorrect.