Humber/Ontario Real Estate Course 4 Exam Practice

What must a real estate agent comply with if handling a seven-month listing agreement according to the Code of Ethics?

1. Write an agreement initially for six months with a 30-day extension

2. Get broker-of-record's written approval for offerings exceeding six months

3. Prominently display the expiration date and seller's initials

4. Include an early termination clause

5. Submit the listing for review by the local real estate board

6. Ensure a detailed inspection is evaluated and filed

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

Prominently displaying the expiration date and the seller's initials in a seven-month listing agreement is a requirement that ensures transparency and clarity for all parties involved. By doing this, a real estate agent helps to ensure that the seller is fully aware of the specific terms of the listing agreement, including when the agreement will expire. This practice is aligned with the Code of Ethics, which emphasizes the importance of clear communication and informed consent in all real estate transactions. This requirement protects both the agent and the seller. It allows the seller to understand the duration of their commitment and if they are approaching the end of the listing period, which can influence their decision-making regarding subsequent actions, such as renewing the agreement or considering other options. In contrast, while early termination clauses, broker approval, or inspections may be relevant in various contexts, they do not specifically address the need for clear communication about the contract's duration as mandated by the Code of Ethics for listing agreements. The emphasis is on ensuring that the seller remains informed and engaged throughout the listing period, making the correct choice not just a matter of policy but a best practice in professional real estate conduct.