Humber/Ontario Real Estate Course 3 Exam Practice

What must Salesperson Mangar ensure when asking for a seven-month listing agreement?

1. Get approval from his broker of record for listings longer than six months.

2. Prominently display the expiration date on the agreement along with the seller's initials.

3. Initially prepare a six-month agreement and then sign a 30-day extension.

4. Allow the seller an option for early termination if the listing exceeds six months.

5. Provide a detailed marketing report every month to the seller.

6. Ensure the listing agreement includes a clause for performance review.

The correct answer is: Prominently display the expiration date on the agreement along with the seller's initials.

When Salesperson Mangar requests a seven-month listing agreement, it is essential that the expiration date is clearly stated in the agreement along with the seller's initials. This practice not only ensures transparency regarding the term of the listing but also protects both the salesperson and the seller by making clear when the listing will expire. Clearly displaying the expiration date emphasizes the length of commitment that the seller is entering into and preserves the integrity of the agreement. The inclusion of the seller’s initials next to the expiration date serves as an acknowledgment from the seller of their understanding and acceptance of this critical detail. This clarity can help prevent misunderstandings or disputes about the duration of the listing later on. The other choices involve strategies or requirements that might not specifically address the core issue of clarity regarding the listing term. For example, requiring broker approval for longer listings, preparing a shorter initial agreement, or providing elaborate performance reviews do not directly relate to ensuring the listing's expiration date is included. While these practices may add value, the straightforward identification of the expiration date and seller acknowledgment is paramount in this situation.