Free RECO Simulation 1 Practice Questions: Seller Listing, Disclosure, and Offer Review

RECO means Real Estate Council of Ontario. This page is for Ontario Real Estate Simulation 1: Residential Real Estate Transactions. Use this focused RECO Simulation 1 page as a short practice test for Seller Listing, Disclosure, and Offer Review. The items are original Finance Prep sample exam questions built for scenario-based practice, not trivia, puzzle questions, official RECO questions, copied live-exam content, or exam dumps.

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Sample questions

These are original Finance Prep practice questions aligned to this topic area. They are not official RECO questions, copied live-exam content, or exam dumps. Use them to preview question style and explanation depth before continuing with topic drills, mixed sets, and timed mock exams in Finance Prep.

Question 1

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Riya is listing a detached house for a seller client. The basement unit is occupied by a tenant until closing, and the seller has told Riya that showings may occur only after the tenant receives written notice. The tenant has a large dog that must be crated before entry. The seller wants a lockbox installed on the side door and asks Riya to put the alarm code in the public remarks so buyers know how to enter. The seller also says, “If a buyer is serious, just let them go through without waiting for the tenant.” What is Riya’s best professional response?

• A. Refuse all showings until the tenant moves out because a tenanted unit cannot be marketed safely while occupied.
• B. Follow the seller’s instruction because the seller owns the property and can authorize direct buyer access during the listing period.
• C. Document the access instructions, use secure non-public showing instructions for the lockbox, alarm, tenant notice, and dog, and advise the seller to get qualified advice before overriding tenant access limits.
• D. Put the alarm code in the public remarks but require buyers to confirm that they will crate the dog before entering.

Best answer: C

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that access facts must be handled carefully and documented. A seller’s ownership does not mean the agent should ignore known tenant notice requirements, occupant safety concerns, pet handling, alarm codes, or lockbox security. Riya should confirm the seller’s lawful showing instructions, keep sensitive access information out of public marketing, use the brokerage’s secure showing process, and ensure cooperating agents understand notice, entry, alarm, and dog instructions before appointments are confirmed. If the seller wants to override tenant access limits, Riya should not give landlord-tenant legal advice or simply carry out the instruction; she should recommend qualified advice and involve her brokerage as needed.

• Treating ownership as unlimited access ignores the tenant and occupant facts that control safe, appropriate showings.
• Publishing an alarm code in public remarks creates an avoidable security and privacy risk, even if buyers are expected to be careful.
• Refusing all showings is too broad; the property can usually be marketed if access is managed properly and documented.

This protects access, safety, privacy, and documentation while keeping Riya within her role and respecting occupancy restrictions.

Question 2

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

A seller’s agent is managing showings for an occupied detached home in Ontario. After a scheduled showing, the seller texts that the basement door was left unlocked and a new dent is visible on the laundry-room wall. The electronic showing record shows which buyer agent accessed the property and when. The buyer agent later sends brief feedback saying the buyers “liked the layout but noticed moisture staining near the laundry sink.” The seller is upset and asks the listing agent to “erase that negative feedback and tell the buyer agent they are paying for the wall.” What should the listing agent do?

• A. Send the buyer agent an invoice for the dent and state that their buyers are responsible because their showing was the last recorded access.
• B. Wait until an offer is received before documenting the incident so the showing record does not discourage buyer interest.
• C. Delete the moisture-stain feedback because the seller says it is harmful to the listing and was not part of a formal inspection.
• D. Keep the access log and feedback intact, document the seller’s report factually, notify the seller of next steps, and escalate the damage concern within the brokerage.

Best answer: D

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is controlled, factual documentation. Showing feedback, electronic access records, damage reports, seller communications, and brokerage escalation all form part of the brokerage’s transaction record. The listing agent should not alter or delete feedback because the seller dislikes it, and should not make unsupported conclusions about who caused damage. A professional response preserves the showing record, records the seller’s concern in neutral terms, keeps relevant photos or written details if available, promptly updates the seller on the process, and involves the brokerage according to its incident or risk procedures. If responsibility, repairs, insurance, or legal remedies become disputed, those issues may require brokerage direction or appropriate professional advice rather than unilateral demands by the agent.

• Deleting feedback undermines record integrity and may remove information relevant to the seller’s decisions.
• Billing the buyer agent assumes responsibility without sufficient evidence and bypasses brokerage handling of a potential dispute.
• Delaying documentation weakens the access and damage record and does not properly protect the seller or brokerage.

This preserves transaction records, separates factual documentation from conclusions, keeps the seller informed, and brings the brokerage into a potential damage and access issue.

Question 3

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

An Ontario seller is reviewing four offers on a single-family home after a well-attended weekend showing schedule. The seller wants to accept quickly because they have already purchased another home. The offers differ as follows: one is the highest price but has a financing condition and a home inspection condition; one is $8,000 lower with no conditions and a larger deposit; one matches the seller’s preferred closing date but has a small deposit; and one has a short irrevocable time. The seller asks their agent, “Just tell me which one to take and do not bother me with the rest.” What is the best action for the agent?

• A. Decline to present the offer with the short irrevocable time because the seller has already said they want a quick decision.
• B. Review all offers with the seller, compare the material terms and risks, explain that the seller decides which offer to accept or counter, and document the seller’s instructions.
• C. Recommend accepting the highest-priced offer because price is the seller’s main financial interest in a multiple-offer situation.
• D. Tell the buyers’ agents the current best price and deposit so they can improve their offers before the seller chooses.

Best answer: B

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that the seller makes the decision, but the agent must help the seller make it with full and objective information. In a competing-offer review, the agent should present all offers as required, compare the important terms, and explain the practical effect of price, conditions, deposit amount, closing date, and irrevocable timing. The highest price is not automatically the best offer if conditions or timing create risk for the seller. A lower unconditional offer, a stronger deposit, or a closing date that matches the seller’s needs may be more attractive depending on the seller’s priorities. The agent should not withhold an offer, choose for the seller, or disclose competing offer details without proper authority. The seller’s decision and instructions should be documented clearly.

• Accepting the highest price ignores conditions, deposit strength, closing needs, and the seller’s risk tolerance.
• Withholding the short-irrevocable offer would prevent the seller from considering a material offer.
• Sharing one buyer’s terms with others without authority can undermine confidentiality and the integrity of the process.

The agent must support an informed seller decision by presenting and comparing all offers objectively, including price, conditions, deposit, closing, irrevocable timing, and risk.

Question 4

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

A seller’s agent has a detached home listed in Ontario. The listing remarks state, “finished basement, dry and move-in ready.” The home is vacant and offers are being reviewed tomorrow evening. After a heavy rain, a buyer’s agent calls from a showing and reports wet carpet along one basement wall, a musty odour, and visible water dripping from a crack. One offer has already been received with no inspection condition, and three more showings are booked for that afternoon. What is the best action for the seller’s agent?

• A. Promptly inform the seller and brokerage, document the report, recommend appropriate investigation or legal advice, and address the potentially inaccurate marketing and offer communications before proceeding.
• B. Cancel all remaining showings until closing so no other buyers see the basement condition before the seller chooses an offer.
• C. Treat the call as routine showing feedback, keep the showings as scheduled, and let buyers decide whether to ask about basement moisture.
• D. Tell the buyer’s agent who called to add an inspection condition, but do not raise the issue with the seller unless that buyer submits an offer.

Best answer: A

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is the difference between routine showing management and a property condition issue that may affect buyer decisions. Scheduling, access problems, lights left on, or minor feedback can usually be handled as showing coordination. Active water dripping into the basement, wet carpet, and a musty odour after rain are different, especially when the listing says the basement is dry and offers are imminent. The seller’s agent should not ignore the report or continue using potentially inaccurate marketing. The appropriate response is to inform the seller, involve the brokerage as needed, document what was reported, and recommend that the seller obtain suitable professional or legal advice. Offer handling may also need to account for buyers who have already viewed or submitted offers.

• Waiting for buyers to ask ignores a known report that may make current marketing misleading.
• Cancelling showings to hide the condition does not address disclosure, accuracy, or fair offer handling.
• Telling only one buyer to add a condition treats the issue as that buyer’s problem instead of a seller-side disclosure and marketing issue.

Active water intrusion that conflicts with the listing remarks is a material issue, not ordinary showing coordination.

Question 5

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

A seller is reviewing one offer on her Ontario single-family home. The agreement of purchase and sale shows a purchase price acceptable to the seller, a closing date that works for her, and a financing condition until Friday. The deposit clause says, Deposit: $35,000 by bank draft upon acceptance, payable to the listing brokerage in trust. The buyer’s agent’s email accompanying the offer says, “The buyer will arrange the deposit by electronic transfer within two business days after acceptance.”

The seller asks whether she can decide immediately. What should the listing agent do first?

• A. Change the deposit clause to require electronic transfer within two business days, initial it for the seller, and send the accepted offer back.
• B. Tell the seller to accept the offer because the price and closing date are acceptable and the deposit issue can be sorted out after acceptance.
• C. Advise the seller to rely only on the agreement of purchase and sale because an email can never affect how an offer should be reviewed.
• D. Clarify the deposit timing and method with the buyer’s agent before the seller decides, because the offer documents and accompanying communication conflict.

Best answer: D

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that a seller should understand the material terms of an offer before deciding whether to accept, reject, or counter. A deposit amount, timing, method, and recipient can affect the seller’s risk assessment and confidence in the buyer’s performance. Here, the agreement says the deposit is due upon acceptance by bank draft, while the buyer’s agent’s email refers to an electronic transfer within two business days. That inconsistency should be clarified before the seller decides. The listing agent should not ignore the conflict, assume it will be resolved later, or alter the offer without proper instructions and communication. Once the term is clarified, the seller can make an informed decision and, if needed, respond with a counteroffer or properly revised term.

• Relying only on the agreement ignores a visible inconsistency that could affect the seller’s decision.
• Accepting first and sorting out the deposit later leaves a material transaction detail unresolved.
• Changing and initialing a term for the seller is improper; any change must reflect the seller’s informed instructions and be communicated correctly.

The deposit arrangement is a material offer term, and the conflicting information should be clarified before the seller makes a decision.

Question 6

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

An Ontario seller has a signed listing agreement for a single-family home. The seller’s written instructions say offers will be reviewed Tuesday at 7:00 p.m. and no pre-emptive offers will be considered. On Monday afternoon, the seller phones the listing agent and says they now want to review a strong pre-emptive written offer immediately and have all interested buyers told about the change. By 5:00 p.m., three written offers have been received. One buyer revises the deposit amount by email before presentation. The seller rejects two offers and signs a counteroffer to the third. A newer team member says the brokerage file only needs the counteroffer because it is the only offer still alive. What is the best professional response?

• A. Ask the buyers’ agents to keep their own records of unsuccessful offers so the listing brokerage file does not contain private buyer information.
• B. Keep the original offer-timing instruction unchanged in the file and rely on the seller’s phone call if anyone later asks why the process changed.
• C. Keep only the counteroffer and the final accepted agreement, because rejected offers no longer affect the transaction.
• D. Confirm the revised seller instruction in writing, keep records of all offers and revisions, document the seller’s decisions, and maintain a communication log in the brokerage file.

Best answer: D

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that offer handling must be traceable from the brokerage record. When a seller changes offer instructions, especially in a multiple-offer or pre-emptive-offer situation, the change should be confirmed and retained. The file should also preserve the written offers, any revisions communicated before presentation, the seller’s decisions to reject or counter, and the timing and content of important communications. A communication log helps show what was presented, when it was presented, who was notified, and what instructions were followed. Rejected offers are still part of the offer process record; they do not become irrelevant just because the seller chose another path. The agent should also follow brokerage procedures for file submission and retention rather than leaving the record to memory or to other parties.

• Keeping only the counteroffer omits rejected offers and offer revisions that form part of the seller’s decision process.
• Relying on a phone call without written confirmation creates a weak record of the changed offer instructions.
• Shifting responsibility to buyers’ agents does not meet the listing brokerage’s own recordkeeping obligations for the offer process.

The complete brokerage record should show the changed instructions, offer presentation, revisions, rejected offers, counteroffer, and related communications.

Question 7

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

An Ontario real estate agent is preparing to list a detached home. During listing intake, the seller says the basement had water intrusion during two recent storms, a contractor recommended exterior drainage repairs, and the seller decided not to complete the work before listing. The seller instructs the agent to describe the basement as “recently finished and worry-free” and says, “Do not mention the water issue unless a buyer specifically asks, because it will hurt my price.” What is the best professional response?

• A. Wait until after an offer is accepted, then tell the buyer’s agent so the issue can be addressed before closing.
• B. Follow the seller’s instruction because the seller controls the listing strategy and buyers can protect themselves with a home inspection condition.
• C. Avoid mentioning the issue in the listing, but add “buyer to verify all basement conditions” to shift the responsibility to buyers.
• D. Explain that the information must not be withheld or minimized, document the discussion, ensure the listing and buyer communications are accurate, and seek brokerage guidance if the seller refuses to permit proper disclosure.

Best answer: D

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that a registrant must not mislead buyers or assist a seller in hiding material property information. A recent pattern of basement water intrusion and a contractor’s recommendation for drainage repairs could reasonably affect a buyer’s decision, price, conditions, or willingness to proceed. The agent should explain the seller’s disclosure obligations and the agent’s own duty to communicate accurately. The listing remarks, feature sheets, showing comments, and offer discussions must not create a false impression such as a “worry-free” basement. If the seller will not allow accurate disclosure, the agent should document the instruction and involve the brokerage rather than participate in misleading marketing.

• A home inspection condition may help a buyer, but it does not permit a seller or agent to conceal known material information.
• A vague verification phrase does not cure a misleading description or selective withholding of a known issue.
• Delaying disclosure until after acceptance deprives buyers of information needed to decide whether and how to make an offer.

Known water intrusion and recommended drainage repairs are material property information that cannot be hidden or selectively framed in marketing or negotiations.

Question 8

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

A seller has received two offers on a detached Ontario home after a one-week listing period. Offer 1 is for $920,000, has no buyer conditions, a $50,000 deposit payable within 24 hours of acceptance, and a closing date matching the seller’s preferred date. Offer 2 is for $945,000, includes financing and home inspection conditions for five business days, a $10,000 deposit payable on acceptance, asks for the washer and dryer to be included, and has a later closing date. The buyer’s agent for Offer 2 says the buyer is “very strong” and expects the conditions to be waived. The seller asks which offer is better. What should the seller’s agent rely on most to support the seller’s informed decision?

• A. The number of showings and online views generated during the listing period
• B. The buyer’s agent’s verbal assurance that the higher offer’s conditions are unlikely to be a problem
• C. The fact that Offer 2 has the highest purchase price before considering any other terms
• D. A written comparison of the signed offer terms, including price, conditions, deposit, inclusions, closing date, and irrevocable times

Best answer: D

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that a seller’s decision should be based on the actual terms and risks in the written offers, not only the headline price or informal assurances. A higher price may be less attractive if it carries financing and inspection conditions, a smaller deposit, requested inclusions, or a closing date that does not meet the seller’s needs. A firm offer with a stronger deposit and preferred closing may give the seller more certainty, even at a lower price. The agent should help the seller compare the material terms objectively and avoid guaranteeing outcomes that depend on the buyer, lender, inspector, or future waiver decisions.

• A verbal assurance from another agent is not the same as enforceable offer evidence and does not remove the risk of conditions.
• The highest price alone does not show the seller the full transaction risk or certainty of closing.
• Showing activity may help explain market response, but it does not decide which received offer is stronger.

The seller needs objective evidence from the actual written offers to compare risk, certainty, timing, and net transaction terms.

Question 9

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

An Ontario seller client lists a single-family home that is occupied by a tenant. The seller instructs the listing agent to run a public open house this weekend and to approve all buyer showing requests immediately. The tenant says they do not consent to a public open house or photos showing personal belongings, but they will permit scheduled showings if proper notice is given. A buyer’s agent asks for a same-day 9:00 p.m. showing. The brokerage’s safety policy requires the agent to screen attendees, keep a showing record, and not leave unknown visitors unaccompanied in an occupied home.

What is the listing agent’s best action?

• A. Cancel all showings until the tenant moves out because any tenant objection prevents the property from being marketed to buyers.
• B. Tell the tenant that the listing agreement overrides their privacy concerns and proceed with open-house advertising and interior photos.
• C. Follow the seller’s instruction because the seller owns the property, approve the 9:00 p.m. showing, and use the lockbox so buyers can tour without delay.
• D. Explain the limits to the seller, document the instruction and tenant response, arrange only properly noticed showings at acceptable times, avoid the public open house without tenant cooperation, and follow the brokerage safety procedure.

Best answer: D

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that showing management must balance several duties at once. A seller can give marketing instructions, but those instructions do not erase an occupant’s access and privacy rights or the brokerage’s safety procedures. The agent should not treat buyer convenience as the controlling factor when the property is occupied. The professional response is to explain the practical limits to the seller, document the discussion, use properly noticed and appropriately timed appointments, protect tenant privacy in marketing, and follow brokerage procedures for screening, attendance records, and supervision. If the seller wants more aggressive access, the agent should recommend legal or property-management advice rather than improvise rules or pressure the tenant.

• Treating ownership as absolute ignores occupant privacy, access limits, and brokerage safety rules.
• Cancelling all showings goes too far because scheduled showings may still be possible when handled properly.
• Claiming that the listing agreement overrides tenant privacy is inaccurate and creates regulatory and consumer-protection risk.

This balances the seller’s marketing goal with the occupant’s privacy and access rights, buyer access, and required brokerage safety controls.

Question 10

Topic: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

A seller client is listing an occupied single-family home. The seller tells the listing agent that the home contains prescription medication and financial papers in the primary bedroom, and that a teenage child will be home alone between 4:00 p.m. and 6:00 p.m. A buyer agent requests a 5:00 p.m. showing and asks for the lockbox code because the listing agent is unavailable to attend. The seller wants as many showings as possible but has not authorized unsupervised access during those hours. What should the listing agent do?

• A. Allow the showing if the buyer agent promises not to enter the primary bedroom.
• B. Decline or reschedule the 5:00 p.m. showing unless proper supervised access can be arranged, and document the seller’s access instructions.
• C. Tell the teenage child to let the buyer agent in and remain in another room during the showing.
• D. Give the buyer agent the lockbox code because the seller wants maximum exposure for the listing.

Best answer: B

What this tests: Seller Listing, Marketing, Showing, Disclosure, and Offer-Review Scenarios

Explanation: The key point is that showing access must follow the seller’s instructions and protect safety, privacy, and property. A desire for broad market exposure does not override unresolved access limits. Here, the home contains sensitive personal items, a minor will be present, and the seller has not authorized unsupervised access during the requested time. The listing agent should not release access details or improvise a procedure that creates risk. The professional response is to delay or reschedule the showing, arrange appropriate supervision if authorized, and document the seller’s instructions and any communication about access.

• Maximum exposure does not justify giving out access information contrary to the seller’s instructions.
• A promise to avoid one room does not address the minor-at-home issue or the lack of authorized unsupervised access.
• Having a teenage child manage access creates safety and privacy concerns and is not an appropriate showing-control procedure.

The showing should be delayed or supervised because privacy, safety, and access authority concerns have not been resolved.

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