When is remuneration paid to a real estate salesperson?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

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!

Remuneration for a real estate salesperson is typically paid once the transaction is completed and payment is received. This reflects standard practice within the real estate industry, where salespeople often earn their commission based on a percentage of the sale price of a property. Until the sale is finalized and the buyer has paid for the property, the salesperson does not receive their commission. This approach ensures that the compensation is directly tied to successful transactions and protects the interests of both the salesperson and their clients.

The other options do not align with standard industry practices. For instance, paying before the transaction is completed or at the time of listing would present risks for both the client and the salesperson, as it could incentivize fees without guaranteed results. Receiving compensation monthly regardless of transactions lacks the performance-based structure that underpins real estate commissions, thus failing to motivate salespeople to close deals effectively.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy