Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT a requirement for a buyer representation agreement under REBBA Code of Ethics?

1. The agreement must contain one expiry date.

2. The agreement must detail services provided by the brokerage.

3. The agreement must have an effective date, as well as a termination date.

4. The agreement can have two expiration dates, one for the current term of the representation agreement and a second for a time extension if such an extension is needed.

The correct answer is: The agreement can have two expiration dates, one for the current term of the representation agreement and a second for a time extension if such an extension is needed.

The correct rationale for why having two expiration dates in a buyer representation agreement is not a requirement aligns with the purpose and structure of such agreements. The guidelines under the Real Estate and Business Brokers Act (REBBA) emphasize clarity and simplicity in contractual agreements. A buyer representation agreement is intended to clearly define the terms under which a buyer is represented, and having two expiration dates could lead to confusion regarding the duration of the agreement. The primary focus is on providing clear terms, which is why the other options emphasize having one expiry date, detailing services, and including both an effective date and a termination date. These elements ensure that all parties have a clear understanding of the timeline and responsibilities involved in the agreement, reducing potential disputes or misunderstandings. Thus, the idea that the agreement might contain two expiration dates introduces unnecessary complexity, which is why it's not a requirement.