Humber/Ontario Real Estate Course 4 Exam Practice

What is the maximum duration for listing a property under REBBA requirements if agreed upon by the seller?

1. Cannot exceed six months.

2. Up to a year if allowed by real estate board rules.

3. Cannot be over 120 days according to contract law.

4. Allowed until the agreed-upon expiry date is clearly stated and initialed by the seller.

5. Cannot surpass eight months under any circumstance.

6. Permitted for at least one fiscal year.

The correct answer is: Allowed until the agreed-upon expiry date is clearly stated and initialed by the seller.

The correct answer reflects the flexibility that exists within the Real Estate and Business Brokers Act (REBBA) regarding property listing durations. Under REBBA, the duration of a property listing can be determined by the agreement between the seller and the real estate broker. As long as the expiry date of the listing is clearly stated and initialed by the seller in the listing agreement, the duration can extend beyond the shorter timeframes suggested in other options. This emphasizes the importance of clarity and mutual consent in real estate agreements, as it allows sellers and brokers to tailor the terms according to their specific circumstances. The other options suggest fixed durations that could limit the freedom of sellers to negotiate their terms. For instance, the references to six months, 120 days, or eight months imply arbitrary maximums that don't account for the negotiated nature of real estate agreements. Moreover, suggesting a minimum duration like one fiscal year does not align with the individualized approach that REBBA supports. Thus, the focus on clear communication and agreement on an expiry date, as noted in the correct choice, correctly reflects the principles underlying REBBA.