Buyer Rebate Inducement Statement

Statement made when the rebate is offered

FlatKey Realty Ltd. offers an eligible buyer client a commission rebate equal to 33% of the gross co-operating brokerage commission, before GST, actually received by FlatKey Realty Ltd. in connection with the buyer's completed purchase.

This is an inducement representation for the purposes of section 50 of the Real Estate Services Rules. A licensee-signed, saveable copy of this statement must be given to the prospective or existing client when a rebate promise or personalized rebate estimate is first made directly to that person. FlatKey's standard workflow is to deliver it with the Disclosure of Representation in Trading Services ("DORTS") package, before or at the beginning of buyer representation and before any personalized estimate is provided.

Conditions and calculation

The rebate applies only if:

1. the buyer completes the purchase;
2. FlatKey Realty Ltd. is entitled to the co-operating brokerage commission;
3. FlatKey Realty Ltd. actually receives and clears that commission; and
4. the rebate is lawful, properly disclosed, and not prohibited by a contract, lender or mortgage-insurer requirement, court order, or other applicable restriction.

The rebate is calculated from the gross pre-GST co-operating commission actually received. It is not reduced by a referral fee absorbed by FlatKey Realty Ltd., an internal brokerage split, or FlatKey Realty Ltd.'s internal per-deal fee. No rebate is calculated on commission that FlatKey Realty Ltd. does not receive.

Payment and financing disclosure

The rebate is paid directly to the named buyer client or clients by cheque or electronic funds transfer from the FlatKey Realty Ltd. general account, after completion and after the related commission has cleared and become available, and no later than 10 business days after both events have occurred. Where there is more than one named buyer, payment is made jointly unless all named buyers give FlatKey a different written direction that FlatKey can lawfully follow. It is not paid from the brokerage trust account. It is not a loan, does not create a repayment obligation, and must not be represented as the buyer's down payment or equity contribution.

The rebate does not change the purchase price in the Contract of Purchase and Sale and is not a seller-funded cash-back arrangement. The buyer must disclose the rebate to the buyer's mortgage broker, lender and mortgage insurer, where applicable, through a channel they accept. For each accepted purchase, FlatKey Realty Ltd. prepares a transaction-specific Buyer Rebate and Financing Disclosure showing the current estimated amount. The signed current version must be delivered before the buyer removes or waives a financing condition. A cash purchase is recorded as having no lender.

Relationship to representation and other disclosures

This statement contains the complete terms of FlatKey's buyer-rebate inducement. If the buyer chooses to receive buyer-representation services from FlatKey after receiving this statement, these terms form part of the service agreement between the buyer and FlatKey whether that service agreement is written, oral, or formed by conduct.

This statement does not require the buyer to sign a Buyer Agency Agreement, use FlatKey exclusively, submit an offer, complete a purchase, pay a fee, or continue receiving services. If the buyer and FlatKey later enter into a written Buyer Agency Agreement, the current version of this statement must be attached to or expressly incorporated into that agreement without changing the rebate terms.

The DORTS explains the agency relationship and is not itself a service agreement. It does not replace this Rule 50 statement. This statement also does not replace the transaction-specific Buyer Rebate and Financing Disclosure required for an accepted purchase.

Optional buyer receipt acknowledgment

The buyer's signature is not a condition of the rebate. Signing below only confirms receipt of this statement; it does not create exclusivity, require the buyer to purchase property, or prevent the buyer from ending the service relationship. If a buyer does not sign, FlatKey must retain independent evidence showing when and how the signed statement was delivered.