Question 5

The broker may list the property effective upon expiration of the current listing.

When a seller indicates they have a current listing with another broker, the broker can proceed to list the property, but only effective after the current listing expires.

A) May list the property immediately

This option is incorrect because the broker cannot list the property immediately if the seller has an existing listing with another broker. Doing so would violate the terms of the current agreement.

B) Must decline to list the property

While this option may seem plausible, it is not accurate. The broker does not have to decline listing the property; instead, they can list it for a future date, contingent upon the expiration of the existing listing.

C) May list the property effective upon expiration of the current listing

This is the correct answer. The broker is allowed to take a new listing that will become effective once the seller's current listing agreement with another broker has expired, ensuring compliance with legal and ethical standards.

D) May take a listing that replaces the current listing

This option is misleading because the broker cannot simply replace the current listing without the seller first allowing the current agreement to expire. The existing contractual obligations must be honored before a new listing can take effect.

Conclusion

The correct answer is C, as it aligns with standard real estate practices where brokers can prepare for a new listing while respecting the terms of existing agreements. Options A and B misunderstand the broker's rights and obligations, while D misrepresents the process of handling existing listings, making C the only accurate choice in this context.