Humber/Ontario Real Estate Course 2 Exam Practice

What does the holdover clause in a seller representation agreement protect?

1. The purchaser.

2. The seller.

3. The salesperson representing the buyer.

4. The brokerage.

5. The appraisal value.

6. The market availability of the property.

The correct answer is: The brokerage.

The holdover clause in a seller representation agreement protects the brokerage. This clause ensures that if a buyer who was introduced to the property during the listing period ends up purchasing the property after the listing agreement has expired, the seller is still obligated to pay the brokerage their commission. This helps to protect the brokerage's interests and ensures that they are compensated for their efforts in bringing a buyer to the property, even if the agreement has technically ended. Options A, C, E, and F are incorrect because the holdover clause does not specifically protect the purchaser, the salesperson representing the buyer, the appraisal value, or the market availability of the property. These aspects are not directly related to the holdover clause in a seller representation agreement.