Humber/Ontario Real Estate Course 3 Exam Practice

What should be included in a representation agreement according to REBBA?

1. Details for agreements over six months are only for representation agreements.

2. A customer service agreement needs effective, expiry dates, and payment terms.

3. All agreements must include information as per customer needs.

4. A buyer's agreement needs different content than a customer's service agreement.

The correct answer is: A customer service agreement needs effective, expiry dates, and payment terms.

The correct choice emphasizes the importance of having effective and expiry dates in a customer service agreement, along with payment terms. These elements are crucial in any representation agreement as they set clear expectations between the parties involved. By outlining the effective and expiry dates, it helps define the duration of the agreement, allowing both the client and the representative to understand the timeframe for which their agreement is valid. Additionally, including payment terms ensures that both parties are aware of any financial obligations involved, which promotes transparency and accountability. In contrast, while the other options mention relevant components of representation agreements, they do not encapsulate the key elements necessary for a comprehensive and enforceable agreement within the context of the Real Estate and Business Brokers Act (REBBA).