PEOPLE GAVE ME WRONG ANSWERS PLease help multiple choice Buy

PEOPLE GAVE ME WRONG ANSWERS. PLease help multiple choice

Buyer Anderson signs an OREA Buyer Representation Agreement with ABC Realty Inc. Anderson does not want to pay commission, but is interested in purchasing a home at 99 Mill Street that is being sold by the owner privately. Anderson\'s salesperson discusses this with Stewart, the property owner, who agrees to 17 sign the OREA Seller Customer Service Agreement with ABC Realty Inc and pay ABC Realty the ful commission of 2.5%. The agreement runs from May 12th to May 30th with a holdover period ending on July 31st. Anderson views the property on May 15th and makes an offer the same day that is accepted on May 16th. The August 2nd completion date is fast approaching but Stewart has not found another home to move into. Would ABC Realty Inc. be owed commission and why, from Stewart the owner of 99 Mill Street, if the transaction never closes because Stewart cannot find another home to move into? Yes, because the buyer indicated he did not want to pay a commission, the seller is obligated, regardless of who caused the sale not to close No, because the seller was selling privately when Anderson saw the property, the seller is not obligated to pay commission unless the sale closes. Yes, because the Seller Customer Service form signed by Stewart would obligate him to pay a commission if the reason the sale did not complete was his fault. No, because the closing date agreed to in the Agreement of Purchase and Sale is after the holdover period identified in the Seller Customer Service Agreement. a b c d Mary Brown has signed a Listing Agreement with ABC Realty Inc. and Nick Sheldon is the listing salesperson. Simon Ng has signed a buyer customer service agreement with the same brokerage, but is being provided customer services by a different salesperson at ABC Realty Inc If Simon wanted to make an offer on Mary\'s property, what does the Real Estate and Business Brokers Act, 2002, require ABC Realty Inc. to do regarding the disclosure of the relationships the broke both Mary and Simon? 18 rage has with a Before any offer is presented, ABC Realty Inc. is required to obtain a written acknowledgement from both b Before any offer is signed, ABC Realty Inc. is required to obtain written acknowledgement that it is providing c Before Simon is asked to sign an offer, ABC Realty Inc. must obtain written permission from Mary allowing d Before any offer is presented to either Simon or Mary, ABC Realty Inc. is required to provide a written Mary and Simon that they are working under multiple representation customer services to both Mary and Simon. the brokerage to provide customer services to Simon disclosure which identifies the nature of the relationship ABC Realty Inc. has with both.

Solution

Answer to question 17.

Introduction:

A seller customer service agreement is a contract between the seller and a real estate company that allows real estate company to act on the sellers behalf to execute the sale of the sellers property in return of commission.

Solution:

Commission under a seller customer service agreement is payable if the property is successfully sold. There is a holdover period mentioned in the agreement (Period of days after the expiry of the agreement in which if the sale is made to the person introduced by the real estate company than the commission is payable even though the agreement has expired).

Since in the current problem, the holdover period has expired hence no commission is payable.

Accordingly the correct answer is:

d. No because the closing date agreed to in the Agreement of Purchase and Sale is after the holdover period identified in the Seller customer service agreement

Answer to question 18

As per the Code of Ethics under section 50 of the Real Estate and Business Brokers Act, 2002, before entering into an agreement with a buyer or seller in respect of trading in real estate, a brokerage shall, at the earliest practicable opportunity, inform the buyer or seller that he is providing servives to two clients on the same trade. Also, he should obtain a written acknowledgement from both the buyer and seller that they have received information with respect to the above fact before any offer is made.

Hence the correct answer to the above question is

a. Before any offer is presented,ABC Realty Inc is required to obtain a written acknowledgement from both Mary and Simon that they are working under multiple representation.