Humber/Ontario Real Estate Course 4 Exam Practice

If an absentee seller does not want the listed property promoted or shown for 30 days and the brokerage proceeds with marketing, what is the implication?

1. The brokerage failed to meet an essential aspect of an agency relationship.

2. Brokerage must continue marketing, assuming seller doesn’t grasp the full implications.

3. Obligated to follow only reasonable, pre-agreed instructions.

4. Not required to follow seller’s instructions.

The correct answer is: The brokerage failed to meet an essential aspect of an agency relationship.

The implication of the situation where an absentee seller does not want the listed property promoted or shown for 30 days, but the brokerage proceeds with marketing, is that the brokerage has failed to meet an essential aspect of an agency relationship. In real estate, an agency relationship establishes a fiduciary duty between the agent (brokerage) and the principal (seller). This relationship requires the agent to act in the best interest of the seller and to adhere to the seller's instructions, provided those instructions are legal and ethical. By disregarding the seller's explicit request to not market the property, the brokerage undermines this fundamental duty. This breach can lead to various consequences, including potential legal action from the seller against the brokerage for not respecting their wishes and for failing to act in accordance with the agreed terms of the agency relationship. Each of the other options reflects a misunderstanding of the obligations within this relationship. The brokerage cannot simply assume that they know better than the seller and must respect their instructions, as ignoring them compromises the trust and responsibility inherent in the agency relationship.