Humber/Ontario Real Estate Course 3 Exam Practice

If a salesperson convinces a seller to cancel an existing listing agreement and switch to their brokerage, this is:

1. Acceptable if the seller is dissatisfied

2. Permissible if the salesperson works for a different brokerage

3. Prohibited and unethical

4. Legal but frowned upon

5. Allowed if no contract breach occurred

6. Required by industry standards

The correct answer is: Prohibited and unethical

The action of convincing a seller to cancel an existing listing agreement with one brokerage in order to list with another brokerage is considered prohibited and unethical. This practice undermines the professional standards and ethical guidelines set forth by real estate regulatory bodies. Agents have a responsibility to respect existing contractual obligations and the trust that clients place in their agents. Encouraging a client to terminate their agreement with another brokerage can lead to potential disputes and is generally viewed as poaching or bad faith conduct in the industry. Ethical real estate practice promotes transparency and respect for all parties involved, including honoring existing agreements. While there may be situations where a seller is legitimately dissatisfied, and discussions about switching brokerages could occur, the manner in which this is done matters greatly. Therefore, any acts that actively encourage or manipulate a seller to breach their listing contract are both unethical and a violation of industry standards.