Humber/Ontario Real Estate Course 4 Exam Practice

What is Seller Gaius's obligation if a buyer contacts them directly during the holdover period of the listing agreement?

1. Sell the property without obligation as the listing has expired.

2. The buyer must purchase the property through the listing brokerage.

3. Inform the listing brokerage about the buyer's interest.

4. Pay partial remuneration to the listing brokerage.

5. Wait until the listing agreement officially terminates.

6. Renew the listing agreement with the brokerage immediately.

The correct answer is: Inform the listing brokerage about the buyer's interest.

Seller Gaius has an obligation to inform the listing brokerage about the buyer's interest because the holdover period is unique to real estate transactions. During this time, the seller is still bound by the terms of the listing agreement to some extent, which often includes an obligation to inform the brokerage of any direct contacts from buyers who may have been introduced to the property during the listing period. This requirement protects the interests of the brokerage, ensuring they still receive compensation for their marketing efforts if the buyer ends up purchasing the property. Options that suggest the seller can act independently of the brokerage, such as selling the property without obligation or requiring the buyer to go through the brokerage, do not align with the contractual obligations typically outlined in a listing agreement during the holdover period. By informing the brokerage, Seller Gaius upholds the integrity of the agreement while allowing the brokerage to facilitate the transaction, should the buyer wish to proceed with the sale.