Humber/Ontario Real Estate Course 4 Exam Practice

Which is true about a for sale by owner (FSBO) compared to mere posting?

1. A brokerage offering mere posting must provide at least four services.

2. A brokerage providing mere posting has no obligations regarding the listing.

3. The FSBO does not receive services from a brokerage.

4. The FSBO listing will appear on realtor.ca.

5. FSBOs do not require any brokerage involvement.

6. A mere posting requires brokerage approval for any changes.

The correct answer is: The FSBO does not receive services from a brokerage.

The assertion that the FSBO does not receive services from a brokerage is accurate because, in a For Sale By Owner situation, the homeowner is selling the property independently without engaging in full representation from a real estate brokerage. This means that the homeowner is not utilizing many of the services commonly offered by agents, such as marketing assistance, open houses, or negotiations. Therefore, the FSBO approach emphasizes self-reliance, where the owner takes on the responsibilities that would typically be handled by a real estate professional. In contrast, a brokerage that offers mere posting may provide limited services, which do not equate to full representation. This distinction signifies that while mere posting can grant visibility by listing the property on platforms like realtor.ca, it does not involve the comprehensive support typically associated with full-service agreements. Similarly, options regarding the need for brokerage involvement or obligations under mere posting further clarify the nature of these different approaches to selling real estate.