Humber/Ontario Real Estate Course 4 Exam Practice

An agent needs a seven-month listing to market a commercial property. What must the agent ensure?

1. Obtain broker's approval for listings exceeding six months.

2. Prominently display the expiration date and seller's initials in the agreement.

3. Initial agreement should be for six months with a 30-day extension.

4. Provide an early termination option in the listing agreement.

5. Get written consent from the seller for the extended listing duration.

6. File a special request with the real estate board.

The correct answer is: Prominently display the expiration date and seller's initials in the agreement.

The correct answer emphasizes the importance of clear communication and transparency regarding the terms of a listing agreement, particularly the expiration date. The agent must ensure that the expiration date of the listing and the seller's initials are prominently displayed in the agreement to avoid potential disputes or misunderstandings about the duration of the listing. This practice helps both the agent and the seller keep track of the timeline and ensures that both parties have agreed upon the specifics outlined in the contract. Clarity in contractual agreements is crucial in the real estate industry to protect all parties involved. Other options may lack essential elements of a clear and comprehensive listing agreement or may not align with the requirements typically expected in listing practices. For instance, options referring to broker's approval or filing special requests might imply constraints that are not necessary for this situation, while initial agreements or early termination options could complicate the straightforward needs of a seven-month listing. Each of these approaches may not provide the same level of clarity regarding the listing's expiration as directly displaying this information in the agreement.