Humber/Ontario Real Estate Course 2 Exam Practice

If a salesperson is contacted by Seller Denby to list his property and also provide an appraisal for a divorce action, what should the salesperson do?

1. Complete an appraisal using the form report format and assist with the listing price

2. Complete an appraisal using the narrative report format and set the listing price

3. Refer him to an appropriate expert regarding the appraisal and assist with the listing price

4. Establish both the listing price and the valuation price with assistance

5. Provide a market analysis and perform the appraisal directly

6. Request another salesperson to handle the appraisal

The correct answer is: Refer him to an appropriate expert regarding the appraisal and assist with the listing price

The reason why the other options are incorrect is because A: Completing an appraisal using the form report format is not necessary in this situation, as the salesperson should refer the individual to an appropriate expert. B: Completing an appraisal using the narrative report format is also not necessary, as the salesperson should refer the individual to an appropriate expert. D: Establishing both the listing price and the valuation price on their own without assistance is not recommended, as a salesperson may not have the expertise or qualifications to do so. E: Providing a market analysis and performing the appraisal directly may not be appropriate, as this can create a conflict of interest. F: Requesting another salesperson to handle the appraisal is not necessary if the salesperson refers the individual to an appropriate expert.