Humber/Ontario Real Estate Course 4 Exam Practice

Which statement about guaranteed home sale plans aligns with REBBA's requirements?

1. The salesperson cannot make such a promise, as it is an inducement to the seller to list the property with that registrant and inducements are not permitted under REBBA.

2. The salesperson can make a promise, as long as he backs it up with a written contract setting out specifically what is being promised to that seller.

3. The salesperson can make a promise, but REBBA restricts such promises to matters involving mortgage financing and not the purchase of a seller's home by a registrant.

4. According to REBBA, the salesperson can only make a promise of this nature in regard to residential property, but not commercial property.

5. Such guarantees are inherently invalid under all circumstances.

6. REBBA does not cover guaranteed home sale plans.

The correct answer is: The salesperson can make a promise, as long as he backs it up with a written contract setting out specifically what is being promised to that seller.

The chosen statement highlights that a salesperson can make a promise regarding a guaranteed home sale plan as long as it is backed up by a written contract that clearly outlines what is being promised to the seller. This aligns with the Real Estate and Business Brokers Act (REBBA), which emphasizes the importance of transparency and written agreements in real estate transactions. Under REBBA, ensuring clear communication and documented agreements is crucial to protect both the salesperson and the seller. By requiring a written contract, the act seeks to prevent misunderstandings about the specific terms and conditions of the promise, thus safeguarding the interests of all parties involved. This written contract serves as evidence of the commitments made, which is essential in a field where such assurances can significantly influence a seller's decision to work with a particular registrant. In contrast, the other statements misinterpret or misrepresent the guidelines set forth by REBBA. Inducements to list, restrictions on certain types of promises, or invalidity of guarantees do not accurately reflect how guaranteed home sale plans can be structured under REBBA's requirements. Instead, the emphasis on documentation and clarity enshrined in the correct response showcases the act's focus on ethical and transparent practices in real estate transactions.