Humber/Ontario Real Estate Course 3 Exam Practice

If a seller has not signed a representation agreement but encourages an agent to bring offers, what must the agent do first?

1. Reduce the representation agreement to writing, sign it, and submit it to the seller before an offer is presented.

2. Reduce the representation agreement to writing, sign it, and submit it to the seller at the time an offer is made.

3. Ensure the seller signs a representation agreement before presenting any offer.

4. Cannot show the property without preparing a written seller representation agreement.

The correct answer is: Reduce the representation agreement to writing, sign it, and submit it to the seller before an offer is presented.

In this scenario, it is important for the agent to first reduce the representation agreement to writing, sign it, and submit it to the seller before an offer is presented. This is crucial to establish a clear understanding of the terms and conditions under which the agent is representing the seller. It protects both parties by outlining their rights and obligations, helping to avoid any misunderstandings or disputes that may arise in the future. Options B, C, and D are not the correct choices in this situation because they do not emphasize the importance of having a written representation agreement in place before presenting an offer. While it is ideal for the agreement to be signed prior to presenting an offer, it is essential for the agent to have the representation agreement in writing and signed by both parties before proceeding with any further steps in the transaction.