Humber/Ontario Real Estate Course 4 Exam Practice

What must a seller customer service agreement include according to REBBA?

1. An effective date

2. An expiry date

3. Remuneration details

4. Property description

5. Service terms and conditions

6. All of the above

The correct answer is: Service terms and conditions

The seller customer service agreement is a vital document in real estate transactions, and its requirements are stipulated by the Real Estate and Business Brokers Act (REBBA). Among the crucial elements that must be included in such agreements are the service terms and conditions, which outline the nature and scope of services that the brokerage will provide to the seller. Including clear service terms and conditions ensures that all parties understand their rights and responsibilities, which contributes to a transparent working relationship. These terms typically cover aspects such as the brokerage's obligations, the seller’s expectations, and any specific commitments agreed upon. By clearly outlining these conditions, the agreement helps prevent misunderstandings and protects the interests of both the seller and the brokerage. While the other elements mentioned—such as an effective date, an expiry date, remuneration details, and property description—are important, they may not be explicitly mandated as essential components of the contract in the same way that service terms and conditions are required. Each of these elements contributes to a well-rounded agreement, but service terms and conditions are fundamentally necessary to ensure clarity and compliance with REBBA regulations.