Humber/Ontario Real Estate Course 4 Exam Practice

What does REBBA specify about remuneration?

1. Can be based on the difference between listing and selling price

2. Can be a flat fee or percentage of sale/rental price

3. Cannot be a series of decreasing percentages

4. Must be at a government-fixed rate if unstated

5. Must be a flat fee only

6. Should be seller-specified

The correct answer is: Can be a flat fee or percentage of sale/rental price

The correct answer highlights that remuneration under the Real Estate and Business Brokers Act (REBBA) can be structured in various ways, including as a flat fee or as a percentage of the sale or rental price. This flexibility allows real estate professionals to negotiate their fees based on the specific needs and circumstances of the transaction, accommodating different types of clients and market conditions. This adaptability is important for professionals in the industry, as it supports a wide range of remuneration models, ultimately enhancing customer service and fostering competitive practices within the real estate market. The other options don't align with the guidelines set by REBBA. For instance, stating that remuneration must be at a government-fixed rate if unstated limits the professional’s ability to negotiate fees based on individual agreements. Likewise, stipulating that remuneration must be a flat fee only or must follow seller specifications may not reflect varying market practices or client preferences. Therefore, recognizing that remuneration can take the form of either a flat fee or a percentage effectively captures the essence of REBBA's provisions on this matter.