Humber/Ontario Real Estate Course 4 Exam Practice

What typically accompanies a seller representation agreement?

1. A province-wide standardized wording.

2. A data sheet with property details.

3. A written agreement signed by both seller and brokerage.

4. A written agreement signed by the seller but not the brokerage.

5. An outline of legal obligations of the seller.

6. A list of potential buyers.

The correct answer is: A written agreement signed by both seller and brokerage.

A seller representation agreement is fundamentally a contract that establishes a formal relationship between the seller and the brokerage. This agreement is critical as it outlines the terms and conditions under which the brokerage will represent the seller in the transaction. The most important feature of this agreement is that it must be signed by both the seller and a representative of the brokerage. This signature indicates that both parties agree to the terms laid out in the representation agreement, which may include details about the scope of services, commission rates, and any obligations each party has during the selling process. While other elements, such as standardized wording, property data sheets, legal obligations, and lists of potential buyers, might be associated with the broader context of selling a property, they do not constitute the necessary contractual requirement of a seller representation agreement itself. The agreement's legal standing is established primarily through the signatures of both the seller and the brokerage. Hence, the emphasis on a written agreement signed by both parties is crucial to solidify this representation relationship.