Humber/Ontario Real Estate Course 3 Exam Practice

If a seller client wants to reduce the listing price, how should they properly proceed in a 'listing service' scenario?

1. Provide a written instruction to the brokerage.

2. Contact the real estate board for authorization to change the price.

3. Cancel the current listing agreement and initiate a new one with a lower price.

4. Only the seller's signature is needed to amend the listing agreement.

5. Communicate the price change directly to potential buyers.

6. Wait until the listing agreement naturally expires before changing the price.

The correct answer is: Provide a written instruction to the brokerage.

In a 'listing service' situation, the correct procedure for a seller client wishing to reduce the listing price involves providing a written instruction to the brokerage. This method is essential because any changes to the terms of the listing agreement, including price adjustments, must be formally documented to ensure clarity and to maintain professionalism throughout the process. The written instruction serves as an official record of the seller’s intent and authorizes the brokerage to make the necessary updates in accordance with the listing agreement. By communicating the price change in writing, the seller also ensures that the brokerage can update marketing materials and platforms accurately, keeping all parties informed and aligned. This practice enhances transparency and can help in avoiding potential misunderstandings about the agreed terms. Other options, such as contacting the real estate board or waiting for the listing to expire, do not effectively facilitate the timely adjustment of the price. Simply canceling a current listing agreement inhibits an efficient process and may require unnecessary steps. Effective communication and written documentation will provide a smoother experience when adjusting the terms of a listing in real estate.