Agreement of Purchase and Sale Practice Questions

Question 1 of 5

What is the seller's right regarding the termination of a listing agreement in Ontario?

• ASellers can terminate the listing agreement, but may be liable for expenses incurred by the brokerage and potentially commission if a sale results from the brokerage's efforts during the listing period
• BSellers can never terminate a listing agreement
• CSellers can terminate at any time with no consequences
• DOnly the brokerage can terminate

Question 2 of 5

A buyer provides a post-dated deposit cheque. What document management issue does this create?

• APost-dated cheques are ideal for deposit management
• BThe APS may specify when the deposit is due — the salesperson must ensure the post-dated cheque date aligns with the agreement terms, and the brokerage must track the date for deposit to the trust account
• CPost-dated cheques are illegal in Ontario; however, post-dated cheques are not illegal but require careful management
• DThe deposit date does not matter — timing of deposit processing is important for trust account compliance and aps compliance

Question 3 of 5

What must a listing agreement disclose about commission rates?

• ACommission rates are standardized and do not need disclosure — commission rates are negotiable and must be clearly disclosed in each listing agreement
• BThe listing agreement must clearly state the total commission rate or amount, how the commission will be shared with cooperating brokerages, when the commission is earned and payable, and that commission rates are negotiable and not fixed by any authority
• CCommission disclosure is optional — commission disclosure in the listing agreement is a tresa requirement
• DOnly the cooperating brokerage split needs to be disclosed

Question 4 of 5

A married couple is selling their home but only one spouse's name appears on the title. Does the non-title spouse need to sign the listing agreement?

• ANo — only the registered owner needs to sign
• BMarital status is irrelevant to listing agreements
• CThe non-title spouse must sign even if they object; in reality, non-title spouse cannot be forced to sign, but their rights must be considered
• DWhile only the registered owner must legally sign, best practice is to involve both spouses in discussions and obtain both signatures when possible — the non-title spouse may have rights under the Family Law Act that affect the property

Question 5 of 5

What is the purpose of the 'Confirmation of Cooperation and Representation' form used in Ontario residential transactions?

• AIt is a marketing document with no legal purpose — confirmation of cooperation form serves important legal and disclosure functions
• BIt is only used in commercial transactions
• CIt replaces the APS entirely — confirmation of cooperation supplements the aps
• DIt confirms the nature of the relationship between each brokerage/salesperson and the parties to the transaction, ensuring all parties understand who represents whom and the commission sharing arrangement