Humber/Ontario Real Estate Course 4 Exam Practice

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What should a salesperson do if a seller is dissatisfied with their current brokerage and considers canceling the listing agreement?

If the existing brokerage mishandles the listing, the seller can cancel and switch to a new brokerage.
Salesperson can promote their brokerage, as long as they are not involved with the current brokerage.
Salesperson must not advise the seller to terminate the listing agreement with their current brokerage.
Seller has unrestricted rights to cancel and transfer their listing agreement anytime.
Salesperson can offer incentives for the seller to switch brokerages.
Seller needs to consult a lawyer before terminating any listing agreement.

The correct answer is: Salesperson must not advise the seller to terminate the listing agreement with their current brokerage.

The statement that a salesperson must not advise the seller to terminate the listing agreement with their current brokerage reflects the importance of adhering to ethical standards and professional responsibilities in real estate transactions. Salespersons have a fiduciary duty to act in the best interest of their clients while also respecting existing contractual obligations. Encouraging a seller to terminate their agreement with one brokerage to engage with another can lead to several complications, including potential legal issues and conflicts with the current brokerage. Since a listing agreement is a contract, the seller must honor its terms unless there are specific grounds that legally allow for termination, such as breaches by the brokerage. By not advising the seller to terminate their listing agreement, the salesperson ensures compliance with industry regulations and promotes a professional standard of conduct. This position protects both the seller's interest and the integrity of the real estate profession. It is crucial for salespersons to guide clients towards finding a resolution that does not violate existing agreements rather than suggesting drastic measures that may not be appropriate or legally sound.