Humber/Ontario Real Estate Course 3 Exam Practice

An absentee seller informs the listing brokerage not to promote or show the property for 30 days. The brokerage ignores this request. What is true in this case?

1. The brokerage has failed to meet one of the essential elements of an agency relationship.

2. The brokerage must continue marketing, as the seller may not understand the implications.

3. The brokerage is only obligated to follow the client's reasonable instructions agreed to in advance.

4. The agent is not required to adhere to the seller's instructions.

5. The brokerage can disregard unreasonable instructions from clients.

6. Marketing activities are at the brokerage's discretion unless explicitly forbidden.

The correct answer is: The brokerage has failed to meet one of the essential elements of an agency relationship.

The correct answer is based on the fundamental principles of agency relationships in real estate. In an agency relationship, the agent (or brokerage) has a fiduciary duty to act in the best interest of the client (the seller). This includes adhering to the client's reasonable instructions regarding the management of their property. When the absentee seller expressly requests that the brokerage refrain from promoting or showing the property for 30 days, this instruction must be taken seriously, as it signifies the seller's desire regarding marketing their property. By ignoring this explicit request, the brokerage fails to meet one of the essential elements of the agency relationship, which is to follow the client's directions as long as they are reasonable and within the scope of the agreement. This breach can lead to a range of issues, including potential legal consequences or damaged trust between the seller and the brokerage. Thus, honoring the seller's request is crucial for maintaining the integrity of the agency relationship and fulfilling the brokerage's fiduciary duties. Other options may allude to notions of discretion or lack of obligation, but these do not accurately reflect the protective role the brokerage must play in ensuring they are serving their client's interests by obeying their directions.