Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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Which remuneration method can a brokerage choose for selling a property?

Flat fee only
Flat fee and/or percentage
Percentage not exceeding $10,000
Percentage only
Hourly rate only
Combination of hourly rate and percentage

The correct answer is: Flat fee and/or percentage

The answer indicating that a brokerage can choose a flat fee and/or percentage is correct because it reflects the flexibility that brokerages have in structuring their remuneration methods. In real estate transactions, brokerages often have the option to negotiate their fees in a way that best meets the needs of both the client and the brokerage's business model. Using a flat fee can provide certainty for clients about what they will be paying, while a percentage-based fee can align the brokerage’s compensation with the value of the property being sold. The ability to use either method allows brokerages to accommodate a variety of client preferences and property types, making it a versatile approach in the marketplace. Other methods listed, like hourly rates or combinations of rates, may limit the brokerage's ability to structure fees competitively or attractively compared to more commonly accepted practices in the industry. Thus, the combination of a flat fee and percentage is the most effective and commonly accepted model in real estate transactions.