Humber/Ontario Real Estate Course 4 Exam Practice

For a salesperson to list a seller's property, when must the listing agreement be written?

1. Before the property price is decided

2. Before taking interior or exterior images

3. Before filling out the property's data sheet

4. Before the owner receives any property offer

5. Following the market analysis

6. Post discussion with potential buyers

The correct answer is: Before the owner receives any property offer

A listing agreement must be in writing before the owner receives any property offer because this written agreement serves as a formal contract between the seller and the salesperson. It outlines the terms of the listing, including the agreed-upon sale price, commission structure, and the duration of the listing. This legal requirement helps protect both parties' interests and ensures that the salesperson has the authority to represent the seller in negotiations with potential buyers. Having a written listing agreement before receiving any offers is crucial; it establishes the legal framework that allows the salesperson to act on behalf of the seller and negotiate terms effectively. Without this documentation in place, there may be ambiguity in the sales relationship, which can lead to disputes or misunderstandings down the line. The other options, while related to the overall process of listing a property, do not point to the critical moment that legally necessitates a written agreement. For example, discussions about the property price, taking photographs, filling out data sheets, or conducting a market analysis can happen prior to having the listing agreement in place, as they are part of the preparatory process before formally entering into a contract. However, it is the receipt of an offer that triggers the need for that formal legal representation through a written agreement.