Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following statements applies to the assignment of a listing agreement?

1. Assignments are invalid without the original broker's consent.

2. Listings can be freely assigned between brokerages at any time.

3. Requires both the seller and new brokerage to sign a new representation agreement.

4. Salesperson can assign a listing to another brokerage without informing the seller.

5. Sellor can assign a listing with no legal ramifications.

6. The buyer must also consent to any assignment.

The correct answer is: Requires both the seller and new brokerage to sign a new representation agreement.

The correct selection centers around the necessity for both the seller and the new brokerage to sign a new representation agreement when a listing agreement is assigned. This is critical because the original listing agreement is a legally binding contract that specifies the terms under which the broker represents the seller. Assigning a listing involves transferring these contractual obligations and rights to another brokerage, which cannot occur without the explicit agreement of the seller and the accepting brokerage. In this context, it’s also essential to recognize that transferring responsibilities and obligations necessitates new formal consent to ensure that all parties understand and agree to the new arrangements. This maintains transparency and upholds the integrity of the real estate transaction process.