Humber/Ontario Real Estate Course 1 Exam Practice

If a salesperson lists a property and it is sold by another brokerage, from where will the listing salesperson receive their remuneration?

1. The other brokerage.

2. The seller.

3. The employing brokerage.

4. The buyer.

5. The local real estate board.

6. The real estate council.

The correct answer is: The employing brokerage.

The correct answer is indeed that the listing salesperson will receive their remuneration from their employing brokerage. In a real estate transaction where a property is sold by a different brokerage, the commission is typically paid by the seller to the listing brokerage, which then distributes the appropriate compensation to the salesperson who listed the property. This structure is fundamental to how brokerage relationships operate within real estate. The employing brokerage acts as the intermediary that manages the funds and ensures that the salespersons are compensated for their efforts in listing and marketing the property, regardless of which brokerage ultimately makes the sale. Other options do not correctly reflect this common practice. For instance, the other brokerage may earn a commission from the sale, but they do not pay the listing salesperson directly. Similarly, while the seller does ultimately pay the commission, it is processed through the listing brokerage. The buyer, local real estate board, and real estate council do not typically have any direct financial relationship with the listing salesperson regarding remuneration for the sale of the property.