Real Estate Council of Alberta Fundamentals Practice Exam

What must be included in written service agreements?

1. Brokerage commission structure

2. The services to be provided by the brokerage

3. An overview of the local real estate market

4. The expected timeline of the agreement

The correct answer is: The services to be provided by the brokerage

The inclusion of the services to be provided by the brokerage in written service agreements is fundamental because it clearly outlines the expectations and responsibilities of both the brokerage and the client. This establishes a mutual understanding of what services the client can expect, such as assistance with property listings, marketing, negotiations, and transactional support. By detailing these services in the agreement, parties are less likely to encounter disputes over what was promised, thus ensuring a clear line of communication and accountability throughout the relationship. Other components, such as the brokerage commission structure, while important, may not be as foundational as defining the services provided. Similarly, an overview of the local real estate market and the expected timeline of the agreement, while helpful and relevant, are not as critical as explicitly stating the nature of the services the brokerage is offering. The focus on services helps to set the stage for a professional relationship and delineates the role of the brokerage in the real estate transaction process.