Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following correctly explains the term "exclusive listing"?

1. The property is listed with only one brokerage firm for sale.

2. All brokerages have the right to sell the property.

3. There are multiple brokers involved in selling the property.

4. The property can be shown to any buyer by any brokerage.

5. The listing agreement has no expiration date.

6. The property cannot be shown until officially on the MLS.

The correct answer is: The property is listed with only one brokerage firm for sale.

The term "exclusive listing" refers to a listing agreement where the property is listed with only one brokerage firm for sale. This type of agreement grants that particular brokerage exclusive rights to market and sell the property, which means the property owner cannot list it with another brokerage during the contract period. In an exclusive listing arrangement, the sole brokerage assumes responsibility for marketing the property, which allows it to leverage its resources and networks to attract potential buyers effectively. This exclusivity often incentivizes the brokerage to invest more effort into selling the property, as they are assured of receiving the commission if a sale occurs. The other choices illustrate misunderstandings of exclusive listings. For instance, stating that all brokerages have the right to sell the property would align more with an open listing, not an exclusive. Similarly, mentioning multiple brokers or saying any brokerage can show the property contradicts the nature of exclusivity inherent in exclusive listings. The statement regarding the listing agreement's expiration date doesn’t specifically relate to the concept of exclusivity, as exclusive listings can indeed have expiration dates. Lastly, a claim that the property cannot be shown until officially listed on the MLS is not a defining characteristic of exclusive listings; properties can still be shown under exclusive arrangements even if they aren't yet on the