An Ontario buyer ends a buyer representation agreement early, citing poor service by the salesperson. Under TRESA, which statement about commission is accurate?
Correct Answer
D) Commission follows the agreement's terms and is owed to the brokerage
TRESA has no special rule cancelling commission when a salesperson breaches a duty. O. Reg. 567/05 s. 13.4 requires the agreement itself to set out the remuneration and any termination terms, and TRESA s. 31(2) bars a salesperson from accepting remuneration for trading from anyone except the employing brokerage. Whether anything is owed depends on the agreement and contract law.
Why This Is the Correct Answer
The buyer's agreement is with the brokerage. Its remuneration and termination terms, which s. 13.4 requires to be set out clearly, decide what if anything is owed, subject to general contract law. Any amount owed is payable to the brokerage, because s. 31(2) prevents the salesperson from taking remuneration from anyone but the employing brokerage.
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