Humber/Ontario Real Estate Course 2 Exam Practice

When does Salesperson Hubbard not need to enter into a written contract?

1. Promising to get a $400,000 mortgage approved

2. Promising to buy a property if it does not sell

3. Designing a full-colour brochure

4. Promising to secure a two-year lease at a specific rate

5. Promising to perform market analysis

6. Providing financial advice for investment properties

The correct answer is: Designing a full-colour brochure

Salesperson Hubbard does not need to enter into a written contract when designing a full-color brochure. This is because designing a brochure falls under the category of marketing activities and does not involve any legally binding agreements or transactions. It is a service provided as part of the overall marketing strategy for a property listing. On the other hand, options A, B, D, E, and F involve promises or commitments that have legal implications and potential financial consequences, thus requiring a written contract to protect all parties involved. For example, promising to get a mortgage approved, promising to buy a property, promising to secure a lease, promising to perform market analysis, and providing financial advice all involve contractual obligations and should be documented in writing to ensure clarity and enforceability.