Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following is NOT a necessary element for a buyer representation agreement as per the REBBA Code of Ethics?

1. The agreement must contain services to be provided by the brokerage.

2. The agreement must have both an effective date and a termination date.

3. The agreement must only have one expiry date.

4. The agreement can have two separate expiration dates.

5. The agreement must be in writing and signed by all parties.

6. The agreement must state the commission to be paid to the brokerage.

The correct answer is: The agreement can have two separate expiration dates.

A buyer representation agreement typically includes essential components to ensure clarity and protect the interests of both the buyer and the brokerage involved. While certain elements are mandatory under the REBBA Code of Ethics, the presence of two separate expiration dates is not a necessary requirement. The REBBA Code of Ethics mandates that buyer representation agreements include an effective date and a termination date. While having two separate expiration dates might not inherently violate any regulations, it is uncommon and can create confusion regarding the terms of the agreement. Agreements usually adhere to a single expiration date to avoid ambiguity and ensure that all parties have clear expectations. Therefore, stating that the agreement can have two separate expiration dates does not align with typical requirements or practices, making this option the correct answer for what is NOT a necessary element for such agreements. The other components listed are standard expectations in forming a valid buyer representation agreement, ensuring that all parties are aware of the terms, services included, commissions involved, and that everything is documented appropriately.