Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following statements is correct?

1. A brokerage can receive any agreed upon remuneration that is the difference between the asking and selling prices.

2. The broker of record must sign the listing on behalf of the brokerage.

3. The listing agreement can be used either as a limited or exclusive listing.

4. The listing agreement must have a holdover provision of at least 60 days.

5. The salesperson must sign the listing agreement on behalf of the seller.

6. Unauthorized remuneration collection is permissible if disclosed to the seller.

The correct answer is: The listing agreement can be used either as a limited or exclusive listing.

The statement indicating that the listing agreement can be used either as a limited or exclusive listing is correct. In real estate practice, these terms refer to different types of listing agreements. An exclusive listing binds the seller to one brokerage, which has the exclusive right to market the property. The broker is entitled to their commission regardless of who sells the property within the listing period. On the other hand, a limited listing happens when the seller gives the broker only limited rights, often allowing the owner to find a buyer themselves. Therefore, the versatility of a listing agreement to be classified as either a limited or exclusive arrangement highlights the different methods through which brokers and sellers can structure their agreements, catering to the preferences and needs of the seller while ensuring clarity in the terms of the negotiations. Understanding the implications of different types of listing agreements is crucial in real estate as it impacts the brokerage's rights to remuneration and the seller's control over the selling process.