Humber/Ontario Real Estate Course 4 Exam Practice

In order to reduce a listing price, what action must Salesperson Lim take?

1. Get written authorization from the seller client using an amendment form.

2. Cancel the existing listing and sign a new agreement.

3. Change the price after consensus with the local real estate board.

4. Secure consent from the brokerage manager directly.

5. Submit an alteration request to the real estate council.

6. Follow up with the seller client and adjust verbally.

The correct answer is: Get written authorization from the seller client using an amendment form.

To reduce a listing price, the appropriate action for Salesperson Lim to take is to obtain written authorization from the seller client using an amendment form. This process ensures that any changes to the terms of the listing agreement, including price adjustments, are documented and agreed upon by both the salesperson and the seller. A written amendment serves as a formal record of the new agreed-upon price, providing clarity and legal backing for both parties. This requirement aligns with the principles of real estate practice, where changes in contractual agreements must be properly recorded to avoid misunderstandings or disputes in the future. It also adheres to fiduciary duties, ensuring that the seller's wishes are honored. The other options involve actions that either do not comply with standard practices for amending real estate listings or suggest a lack of necessary documentation and direct consent from the seller. For example, canceling the existing listing and signing a new agreement can complicate the process unnecessarily, and adjusting prices based on consensus with local real estate boards or other parties does not involve the required authorization from the seller. Thus, written authorization remains the most legitimate and secure approach to amending the listing price.