Humber/Ontario Real Estate Course 2 Exam Practice

In a For Sale By Owner (FSBO) transaction, what additional steps might be necessary?

1. The FSBO seller must be informed of all REBBA requirements prior to any sale taking place.

2. The FSBO seller is obligated to prepare the agreement of purchase and sale.

3. The buyer's salesperson will protect the seller’s best interests as well.

4. The buyer may need to perform additional due diligence, as the seller's actions are not regulated and do not need to meet REBBA requirements.

The correct answer is: The FSBO seller must be informed of all REBBA requirements prior to any sale taking place.

In a For Sale By Owner (FSBO) transaction, it is essential for the seller to be informed of all relevant requirements under the Real Estate and Business Brokers Act (REBBA). This is crucial because FSBO sellers do not benefit from the guidance and expertise typically offered by real estate professionals. Unlike transactions involving licensed agents, where the parties are facilitated through established legal and ethical standards, FSBO sellers may lack knowledge of necessary disclosures, regulations, or processes that ensure a compliant and successful transaction. Providing the FSBO seller with information about these requirements helps protect their interests and ensures they follow the legal protocols necessary for selling their property. This awareness is vital to prevent potential legal pitfalls, safeguard against disputes, and promote a smoother transaction process, ultimately benefiting both the seller and the buyer in the long run.