Humber/Ontario Real Estate Course 4 Exam Practice

An offer received by the listing brokerage from another brokerage:

1. Must be presented within 24 hours of its receipt.

2. Always needs presentation by the listing salesperson.

3. Must be presented and then dealt with according to strict procedures set out in the Code of Ethics.

4. Can be accepted, rejected, or countered by the seller when presented.

5. Needs additional endorsements before acceptance.

6. Should be pre-approved by the brokerage.

The correct answer is: Can be accepted, rejected, or countered by the seller when presented.

The statement regarding how an offer received by the listing brokerage from another brokerage can be accepted, rejected, or countered by the seller when presented is correct because it aligns with the standard procedures understood within real estate practice. When an offer arrives, it is essential for the seller to have the discretion and authority to respond according to their position, preferences, and negotiation strategy. This reflects the core principle of agency in real estate transactions where the seller, as the principal, retains the power to decide how to proceed with an offer. An offer typically involves negotiations, permitting the seller to analyze the terms presented and formulate a response that could either accept the offer, propose a counteroffer, or reject it altogether, thus engaging in the negotiation process. The other options, while related to procedures surrounding offer presentation and negotiation in a real estate context, do not accurately capture the seller's active role in response to offers. Specific timelines or procedural requirements may vary based on brokerage policies or local regulations, but the fundamental right of the seller to make a decision on an offer remains constant and essential in real estate transactions.