Humber/Ontario Real Estate Course 1 Exam Practice

What type of agreement involves a seller listing their property with a brokerage?

1. Brokerage Listing Agreement

2. Client Services Agreement

3. Exclusive Listing Agreement

4. Seller Agency Agreement

5. Seller Representation Agreement

6. Transaction Brokerage Agreement

The correct answer is: Seller Representation Agreement

The correct choice is based on the nature of the relationship established between the seller and the brokerage when a property is listed for sale. A Seller Representation Agreement is a crucial document in real estate transactions as it signifies that the brokerage will act on behalf of the seller, providing services such as marketing the property, negotiating offers, and handling paperwork. This agreement not only represents the seller's interests but also formally establishes a fiduciary duty where the brokerage must act with the seller's best interests in mind. The other terms might sound related, but they refer to different aspects of real estate agreements. A Brokerage Listing Agreement is a general term that may not specify the representation aspect as clearly. The Exclusive Listing Agreement implies a level of exclusivity in services, which could align with the Seller Representation Agreement. However, it doesn't specifically articulate that it is a representation-based agreement. A Client Services Agreement is broader and does not necessarily tie directly to the listing of a property. A Seller Agency Agreement typically refers to ensuring that the seller is represented but could be confused with the kind of negotiations that take place. Lastly, a Transaction Brokerage Agreement denotes a neutral role without the exclusive representation that the Seller Representation Agreement entails. Overall, the Seller Representation Agreement clearly defines the relationship in which