Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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Which of the following statements is correct?

The listing agreement requires that the holdover provision be between 60 and 90 days
The broker of record must sign the listing agreement on behalf of the brokerage
The listing agreement can be used either as a 'listing services' listing or an exclusive listing
A brokerage can collect remuneration that is the difference between the asking and selling prices, if the seller so agrees

The correct answer is: The listing agreement can be used either as a 'listing services' listing or an exclusive listing

The statement asserting that the listing agreement can be utilized either as a 'listing services' listing or an exclusive listing is correct because it reflects the flexibility of listing agreements in real estate transactions. In practice, a listing agreement serves multiple purposes, including various types of agreements that can be tailored to the needs of the seller and the brokerage. A 'listing services' listing typically allows the seller more freedom to sell the property themselves without incurring a commission, while an exclusive listing grants the broker the sole right to market the property for sale, ensuring that the seller is committed to working with that broker. This type of agreement can better protect the broker's marketing investment and efforts. Understanding the distinction and the options available within listing agreements is crucial for both real estate professionals and clients, enabling effective negotiation and representation.