Humber/Ontario Real Estate Course 3 Exam Practice

To which regulatory period does the maximum period of a listing typically adhere according to REBBA?

1. Cannot exceed six months.

2. Can be up to one year if real estate board rules allow it.

3. Cannot be more than 120 days, as contract law limits to 8 months.

4. Can be until November 30 if expiry is prominently shown and the seller's initials are obtained.

5. Needs special approval for durations beyond 6 months.

6. Can be up to 18 months with mutual party agreement.

The correct answer is: Can be until November 30 if expiry is prominently shown and the seller's initials are obtained.

The correct answer highlights that the regulatory provisions under the Real Estate and Business Brokers Act (REBBA) allow a listing to extend until November 30, provided that this expiry date is clearly indicated in the contract and the seller's initials are obtained as acknowledgment. This requirement ensures that sellers are fully aware of the terms and conditions related to the duration of the listing, thereby promoting transparency and protecting their interests. Understanding why this is the correct answer involves recognizing how contractual terms in real estate listings are managed. The emphasis on clearly displaying the expiry date, along with obtaining the seller's initials, serves as a safeguard against misunderstandings and ensures that both parties are in accord with the listing period’s parameters. Looking at the other options, they either state incorrect maximum periods that are not compliant with REBBA regulations or misinterpret the requirements for listing contracts. Therefore, recognizing the importance of specific expiry terms and the seller's acknowledgment helps inform best practices in real estate transactions, ensuring compliance with regulations.