Humber/Ontario Real Estate Course 4 Exam Practice

Which action by a buyer during the holdover period necessitates remuneration payment?

1. Buying through a new agent

2. Purchasing a different property

3. Finalizing a deal on an introduction made during the agreement

4. Reaching an agreement with a new representative

The correct answer is: Finalizing a deal on an introduction made during the agreement

The correct answer involves the action of finalizing a deal on an introduction made during the agreement. During the holdover period, if a buyer completes a transaction for a property that was introduced to them by their original agent while the agency agreement was still in effect, the original agent is entitled to remuneration. This is grounded in the principle that the agent was instrumental in making the buyer aware of the property and that their efforts directly led to the buyer's eventual purchase. In the context of real estate, holdover periods are designed to protect agents' rights to compensation for their work, especially for clients they have introduced to properties. When a buyer proceeds with a deal based on the introduction from the agent, it establishes a clear link between the agent's earlier efforts and the successful transaction. The other options do not create the same obligation for remuneration. Buying through a new agent or reaching an agreement with a new representative would not typically be linked back to the original agent’s efforts, and purchasing a different property similarly lacks that direct connection. Therefore, those actions do not warrant compensation to the agent during the holdover period.