Humber/Ontario Real Estate Course 4 Exam Practice

At what point must Salesperson Chang put the listing agreement in writing when listing a seller's condominium townhouse?

1. Before any property photos are taken

2. Before completing the listing data sheet

3. Before determining the listing price

4. Before the seller receives an offer

5. Prior to buyer-seller interaction

6. Upon finishing the visual inspection

The correct answer is: Before the seller receives an offer

The listing agreement must be put in writing before the seller receives an offer because it formalizes the relationship between the seller and the salesperson and establishes the terms of the listing, including the salesperson's authority to negotiate on behalf of the seller. This written agreement outlines the responsibilities and obligations of both parties, ensuring that the seller has agreed to the conditions under which their property will be marketed. Having a written agreement prior to receiving offers protects the interests of both the seller and the salesperson, as it provides clear documentation of the agreement and the scope of the salesperson's services. In real estate operations, while activities like taking photos, completing listing sheets, determining prices, and visual inspections are vital elements of the selling process, they do not substitute for the need for a written listing agreement. Each of these actions can take place while still working under a verbal understanding, but formalizing the agreement is crucial before engaging in negotiations or offers to ensure legal and ethical compliance.