Humber/Ontario Real Estate Course 1 Exam Practice

Which statement is NOT correct regarding remuneration according to REBBA?

1. Agreed-upon amount or percentage is acceptable, but not a combination

2. An agreed-upon amount is acceptable for remuneration

3. A percentage of the sales price is an acceptable remuneration

4. Buyers may have to pay remuneration under specific agreements

5. Combination of fixed and percentage fee is allowable under REBBA

6. Remuneration must be disclosed to clients

The correct answer is: Agreed-upon amount or percentage is acceptable, but not a combination

The correct statement regarding remuneration according to the Real Estate and Business Brokers Act (REBBA) is that an agreed-upon amount or percentage is acceptable, but not a combination. This highlights a specific rule under REBBA that governs how real estate professionals can structure their fees. In the context of REBBA, remuneration must be clear and mutually agreed upon between the parties involved. While both an agreed amount and a percentage of a sale are acceptable forms of remuneration, the law does not permit a combination of the two. This is to ensure transparency and avoid confusion about what the client is paying for. The other statements reflect practices or provisions that are, in fact, compliant with the regulations established under REBBA. For example, buyers may indeed have to pay remuneration under specific agreements, and it is mandatory for brokers to disclose remuneration to clients, ensuring clarity and adherence to fair practices.