Humber/Ontario Real Estate Course 4 Exam Practice

If a buyer's offer is not accepted, how long must the seller's brokerage retain a summary of that offer?

1. A minimum of six months

2. One year, in full offer only

3. One year, either summary or full offer

4. Six months, summary only

5. Sellers need not retain rejected offers

6. A minimum of three years

The correct answer is: One year, either summary or full offer

The required retention period for a summary of a buyer's rejected offer is one year. This means that the seller's brokerage must keep either a summary or a complete record of the offer. The rationale behind this requirement is to ensure transparency and accountability within the real estate transaction process. By retaining a summary, brokerages can provide evidence of the offers made, should any disputes arise regarding the handling of offers or the seller's decision-making process. In this context, the other options suggest varying periods or formats for retention that do not align with the legal or regulatory standards in Ontario. For example, retaining it for a minimum of six months or three years is not in compliance with the established one-year guideline, and the notion that sellers need not retain rejected offers overlooks the importance of documentation in the real estate industry. Thus, the requirement to keep either a summary or full offer for one year upholds professional practices in real estate transactions.