What is a common result of clearly written remuneration agreements?

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Prepare for the Real Estate Council of Ontario (RECO) Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Get ready for your exam!

Clearly written remuneration agreements establish clear expectations regarding compensation. When these agreements are transparent and detailed, they delineate the terms of payment for real estate services, ensuring that all parties involved understand how and when compensation will take place. This clarity helps to prevent misunderstandings or disputes that might arise from vague or poorly defined agreements.

The presence of well-defined remuneration agreements can also contribute to a smoother transaction process, as both buyers and sellers are aware of their obligations and the remuneration structure for agents. This ultimately fosters professionalism and builds trust in the relationship between clients and real estate professionals.

In contrast, while better communication between buyers and sellers is a beneficial outcome of effective agreements, it is not the primary result of remuneration clarity. Increased competition among buyers and higher prices for real estate listings may occur under different market conditions but are not direct results of clear remuneration agreements.

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