Humber/Ontario Real Estate Course 2 Exam Practice

Which factor is likely to be a responsibility under the holdover clause in a buyer's representation agreement?

1. Payment of commission to the new brokerage

2. Exemption from remuneration if property is bought via a different brokerage

3. Continued remuneration responsibility for a specific period after agreement expiration

4. Full commission payment regardless of purchase date

5. Only partial responsibility if the property was not prominently listed

The correct answer is: Continued remuneration responsibility for a specific period after agreement expiration

The holdover clause in a buyer's representation agreement typically states that the buyer is responsible for paying the agent's full commission if they purchase a property that was shown to them during the term of the agreement, even if the purchase is made after the agreement expires. Option A is incorrect because it refers to payment to a new brokerage, which is not relevant to the holdover clause. Option B is incorrect because it states an exemption from remuneration, whereas the holdover clause specifically states continued responsibility. Option D is incorrect because the holdover clause only requires partial responsibility, not full commission payment. Option E is incorrect because the holdover clause does not mention the property being prominently listed, it only pertains to properties shown during the agreement term.