Free RECO C2 Practice Questions: Listing, Marketing, and Seller Services

RECO means Real Estate Council of Ontario. This page is for Ontario Real Estate Course 2: Residential Real Estate Transactions. Use this focused RECO C2 page as a short practice test for Listing, Marketing, and Seller Services. 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: Listing, Marketing, Seller Services, and Residential Sale Preparation

A buyer client views an Ontario residential property and notices new drywall and flooring in the basement. After the showing, the buyer says a neighbour mentioned there was “serious water damage last year” and asks the agent whether the problem was fully repaired. The agent has no inspection report, no seller documentation, and no independent way to verify the neighbour’s comment before offers are due. What is the best response?

• A. Explain that the concern cannot be verified, ask the listing brokerage for relevant information, recommend appropriate professional due diligence, document the discussion, and consider an offer condition that protects the buyer.
• B. Tell the buyer that the repair appears complete based on the renovation work, and rely on the buyer’s home inspection if the offer is accepted.
• C. Contact the neighbour again for more details and provide the buyer with the neighbour’s name, address, and comments so the buyer can decide whether to offer.
• D. Advise the buyer not to submit any offer because an unverified water-damage concern makes the property unsuitable.

Best answer: A

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: When a buyer raises a property concern that the agent cannot independently verify, the agent should not guess, minimize the issue, or give technical assurances. The appropriate response is to be clear about the limits of the available information, seek relevant facts through proper channels such as the listing brokerage, and recommend qualified due diligence, such as a home inspection or specialist review where appropriate. The agent should also document the buyer’s concern and the advice given. If the buyer still wants to proceed, an offer condition can help manage the risk by giving the buyer a contractual opportunity to investigate before becoming firm. This approach supports accurate transaction information, consumer protection, representation duties, and risk control without overstepping the agent’s competence.

• Visual impressions from renovations are not reliable proof that water damage was repaired or that the cause was fixed.
• Sharing a neighbour’s personal details and comments raises privacy and reliability concerns and does not replace proper verification.
• Automatically advising against an offer goes too far when the issue is unverified; the buyer should receive balanced advice and due-diligence options.

This response protects the buyer by avoiding unsupported assurances while seeking reliable information, documenting advice, and using due diligence and conditions to manage the risk.

Question 2

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

An Ontario real estate agent is preparing online marketing for a residential listing. The seller wants the listing to state: “Basement professionally waterproofed in 2021 with a transferable warranty.” Which evidence best supports including that claim in the property promotion?

• A. The seller’s statement that a previous owner told them the basement was waterproofed
• B. A prior MLS listing that described the basement as dry and finished
• C. A waterproofing contractor’s invoice and warranty document showing the property address, 2021 work, and transfer terms
• D. The agent’s observation that the basement has no visible moisture during the listing appointment

Best answer: C

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: Property promotion claims should be accurate, supportable, and not misleading. The stronger the claim, the more directly the agent should verify it before using it in advertising. A statement about professional waterproofing, a specific year, and a transferable warranty contains several factual elements. The best support is documentation from the contractor and warranty provider that ties the work to the property, confirms the date, and shows whether the warranty can be transferred. Seller statements, visual impressions, and prior listing wording may alert an agent to facts worth investigating, but they do not adequately support a precise promotional claim.

• A seller’s second-hand statement may be sincere, but it does not verify the work, date, or warranty terms.
• No visible moisture during one visit does not prove professional waterproofing or a transferable warranty.
• A prior listing may repeat an unsupported marketing statement and should not be treated as proof.

Written contractor and warranty documents directly support the specific work, date, property, and transferability being advertised.

Question 3

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

A seller client receives two written offers on a detached home. The seller immediately says, “I only care about the highest price.” One offer is for $920,000 with a small deposit, financing and home-sale conditions, and a closing date that is later than the seller requested. The other offer is for $900,000 with a larger deposit, no financing condition, an inspection condition, and the seller’s preferred closing date. The listing agent has recent comparable sales showing that both prices are within the current market range. What should the agent do next?

• A. Recommend accepting the $920,000 offer because the agent’s duty is to maximize the sale price for the seller.
• B. Review price along with conditions, deposit, closing date, market evidence, and risk factors, then document the seller’s informed instructions and seek brokerage guidance if needed.
• C. Tell the lower-priced buyer to remove the inspection condition before the seller will consider the offer.
• D. Choose the offer the agent believes is safest and present only that offer to avoid confusing the seller.

Best answer: B

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: A listing agent must help the seller make an informed decision by explaining all material terms of each offer. Price is important, but conditions, deposit strength, closing date, uncertainty, timing, and market evidence can affect whether an offer is suitable for the seller’s objectives. The agent should not decide for the seller or pressure another party unfairly. The agent should present offers accurately, explain practical risks within the agent’s role, recommend legal or brokerage guidance when appropriate, and document the seller’s instructions. This protects the seller while maintaining fair and accurate transaction handling.

• Focusing only on the highest price ignores conditions and closing risk that may affect whether the transaction completes.
• Pressuring a buyer to remove an inspection condition can be unfair and may undermine informed decision-making.
• Filtering offers for the seller is improper; the seller should receive accurate information and make the decision.

A seller decision should be informed by all material offer terms and transaction risks, not price alone.

Question 4

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

A seller is comparing two offers on a listed Ontario residential property. The listing agent prepares a short offer summary for the seller:

• Purchase price: $815,000
• Closing: 60 days
• Deposit: $25,000
• Conditions: financing for 5 business days

Before the seller responds, the agent notices that the written offer states the deposit is payable “within 24 hours after the buyer gives notice waiving the financing condition,” not upon acceptance. What correction should the agent make to the offer summary?

• A. Tell the seller the offer cannot be accepted because a deposit payable after waiver makes the offer invalid.
• B. Revise the summary to state the deposit timing exactly and explain that no deposit may be held until after the financing condition is waived.
• C. Leave the summary as written because the deposit amount is accurate and timing can be handled after acceptance.
• D. Revise the summary to show the deposit as due upon acceptance because that is the usual seller expectation.

Best answer: B

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: An offer summary used to support a seller’s decision must accurately reflect material terms in the written offer. A deposit is not only an amount; the timing and triggering event also matter. If the deposit is not delivered until after a condition is waived, the seller may have less security during the conditional period than the summary suggests. That fact could influence whether the seller accepts, rejects, counters, or prefers another offer. The agent should correct the summary, point the seller back to the written offer, and explain the practical risk without altering the offer or giving legal advice.

• Treating timing as an administrative detail understates seller risk because the brokerage may not hold funds during the conditional period.
• Substituting the usual deposit timing would misstate the buyer’s actual offer and could mislead the seller.
• A delayed deposit does not automatically make an offer invalid; it is a term the seller must evaluate.
• The correct correction is to disclose the exact deposit timing and its practical effect on the seller’s decision.

The timing of the deposit is a material term because it affects the seller’s risk while the offer remains conditional.

Question 5

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

A seller has listed an Ontario residential property that includes a basement apartment occupied by a tenant. The seller’s written showing instructions say that all appointments must be confirmed in advance, no visitor may enter without a registrant present, and no photos or videos may be taken in the tenant’s unit without express permission. The listing brokerage also prohibits sharing lockbox codes with buyers. A buyer’s agent says the buyers are only in town tonight and asks the listing agent to provide the lockbox code so the buyers can enter alone and record a video walkthrough. What is the best response by the listing agent?

• A. Allow the buyers to enter alone if they agree in writing not to touch anything or post the video publicly.
• B. Decline the request and offer to arrange an authorized showing or recording only in line with the seller’s instructions, occupant privacy limits, and brokerage safety procedures.
• C. Tell the buyer’s agent to decide whether the buyers can enter because the request came through the cooperating brokerage.
• D. Provide the lockbox code because the buyers are represented by another registrant and may submit an offer after viewing.

Best answer: B

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: Access to a listed property must be handled according to the seller’s lawful instructions, occupant privacy considerations, and the brokerage’s safety and security procedures. A listing agent should not treat buyer convenience as a reason to bypass confirmed appointments, registrant supervision, lockbox controls, or restrictions on recording private living areas. The professional response is to refuse unauthorized access while trying to facilitate a compliant alternative, such as a properly scheduled showing, an accompanied visit, or a recording only with the required permission. This protects the seller’s property, respects the occupant’s privacy, and keeps the brokerage’s procedures intact.

• Sharing a lockbox code creates a property-security and safety problem, even if the buyers are serious.
• A written promise from buyers does not cure unauthorized access or unauthorized recording of an occupied area.
• The cooperating brokerage does not control the seller’s access instructions or the listing brokerage’s lockbox procedures.

Buyer convenience does not override written access instructions, occupant privacy, property security, or brokerage safety rules.

Question 6

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

A seller has signed a listing agreement for a tenant-occupied townhouse. The seller tells the listing agent, “To maximize exposure, give every interested buyer agent the lockbox code, tell them to show it anytime between 8 a.m. and 9 p.m., and leave the tenants’ closets open so buyers can see storage.” The tenants have not agreed to unrestricted access, and the seller wants showings to begin tomorrow. What is the best professional response?

• A. Set written showing instructions that protect access, notice, and security, and confirm tenant privacy expectations before any lockbox or showing access is used.
• B. Follow the seller’s instructions because the seller owns the property and has authority to decide how showings will occur.
• C. Allow unrestricted lockbox access only to buyer agents who confirm that their buyers are pre-qualified.
• D. Cancel all in-person showings and market the property only with exterior photos until the tenants move out.

Best answer: A

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: A listing agent must help the seller market the property while also protecting occupant privacy and property security. A tenant-occupied home requires particular care because access should not be treated as unrestricted simply because the owner wants maximum exposure. The agent should establish clear showing instructions, address required notice and agreed access times, control lockbox use, and avoid unnecessary intrusion into personal areas or belongings. If the seller’s proposed plan is unsafe or disregards privacy, the agent should not simply implement it. The proper response is to correct the plan, document the instructions, and use brokerage guidance where needed before showings begin.

• Seller ownership does not justify unsafe access or ignoring occupant privacy.
• Buyer pre-qualification does not solve the problem of unrestricted lockbox sharing or improper access instructions.
• Exterior-only marketing is too restrictive unless required by the facts; the better response is controlled, privacy-conscious showing access.

The agent should correct the plan by using controlled access and clear instructions that respect occupant privacy and property security.

Question 7

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

A seller receives three offers on an Ontario townhouse after a properly advertised offer presentation time.

• Offer A: $905,000, conditional on financing and inspection for 5 business days, $20,000 deposit within 24 hours of acceptance, 60-day closing.
• Offer B: $890,000, no conditions, $50,000 certified deposit submitted with the offer, 30-day closing, standard inclusions as listed.
• Offer C: $915,000, conditional on the sale of the buyer’s current home for 10 business days, $5,000 deposit within 48 hours of acceptance, 90-day closing.

The seller says, “Just tell me which one is best. I probably want the highest price.” What should the seller’s agent do?

• A. Prepare a clear comparison of price, conditions, deposit terms, closing dates, and seller priorities; explain the practical risks and market context; recommend brokerage or legal guidance where needed; and document the seller’s instructions.
• B. Recommend accepting Offer B immediately because a firm offer is always better than a conditional offer.
• C. Recommend accepting Offer C because it has the highest price and therefore gives the seller the best result.
• D. Tell all buyers the exact price and terms of the competing offers so they can improve their offers before the seller decides.

Best answer: A

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: Seller decision support requires more than identifying the highest price. The agent should help the seller compare the whole offer: price, conditions, condition periods, deposit amount and timing, closing date, inclusions, certainty of completion, and fit with the seller’s needs. A higher conditional offer may carry more risk than a lower firm offer, but that does not mean the agent should decide for the seller. The agent can explain practical implications, provide relevant market evidence, identify issues that may need brokerage or legal guidance, and document the seller’s lawful instructions. Fairness and confidentiality also matter during offer handling, so competing offer details should not be shared unless properly authorized and permitted.

• Choosing only the highest price ignores condition risk, deposit strength, closing timing, and the seller’s priorities.
• Treating every firm offer as automatically superior overstates the rule; the seller must still compare all terms.
• Disclosing exact competing terms to buyers can create confidentiality and fairness problems unless properly authorized and handled.

The agent supports an informed seller decision without substituting the agent’s judgment for the seller’s choice.

Question 8

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

Two spouses have signed a seller representation agreement and listing documents for their Ontario detached home. The documents authorize MLS exposure, interior photos, and a list price of $949,000. The day before the listing is to go live, one spouse phones the agent and says to raise the price to $979,000 and to remove all interior photos because they now want a quieter marketing approach. The other spouse is not on the call. What is the best action before changing the listing or marketing plan?

• A. Change only the photos because marketing is flexible, but leave the price unchanged until an offer is received.
• B. Obtain clear written instructions from all seller clients and update the listing records or agreement as needed before making the changes.
• C. Make the changes immediately because any one owner may verbally revise marketing instructions after signing the listing documents.
• D. Proceed with the original listing plan because signed listing documents cannot be changed once marketing has been scheduled.

Best answer: B

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: A real estate agent should not rely on an informal or incomplete instruction when it changes important listing terms or marketing limits. Price, MLS exposure, and photo use affect how the property is represented to the market and may affect both seller clients. The safer professional response is to obtain clear written confirmation from the seller clients with authority to give the instruction and to ensure the brokerage file and listing documents are updated where required. This protects the clients, reduces misunderstandings, and supports accurate marketing. Verbal instructions may need immediate discussion, but they should be documented before the agent changes agreed listing terms or limits the marketing plan.

• Acting on one spouse’s phone call is risky because the agreed listing documents were signed by both seller clients.
• Changing only the photos treats marketing limits as informal, but photo use was part of the authorized marketing plan.
• Refusing any change is too rigid; seller instructions can change, but they must be properly confirmed and recorded.

Changes to price and marketing limits affect agreed listing terms, so the agent should confirm the seller clients’ instructions in writing before acting.

Question 9

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

A seller asks an Ontario real estate agent to use a high-attention marketing plan for a listed detached home. The draft ad says: “Waterfront luxury with a legal income suite, 5 minutes to GO, guaranteed rental income.” In fact, the property backs onto a stormwater pond, the basement room lacks required egress for a bedroom, there is no legal secondary suite, and the GO station is an 8-minute drive in normal traffic. The seller says the wording will increase showings and that buyers can verify details later. What should the agent do before the property is promoted?

• A. Keep the wording if the seller gives written instructions accepting responsibility for the marketing content.
• B. Use the attention-grabbing claims in social media only, because formal listing materials can be corrected later.
• C. Publish the ad as drafted, but add a small disclaimer that all measurements, uses, and travel times must be verified by buyers.
• D. Revise the marketing to use accurate, supportable descriptions that a consumer can understand, and remove misleading claims and guarantees.

Best answer: D

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: Residential real estate marketing must help consumers understand the property accurately. An agent should not use inflated or unsupported claims to create interest and then rely on buyers to discover the truth later. Here, several statements are likely misleading: “waterfront” overstates the stormwater pond setting, “legal income suite” is unsupported, “5 minutes to GO” conflicts with the known travel fact, and “guaranteed rental income” suggests a result the agent cannot properly promise. The agent should correct the plan before publication by using factual, supportable wording, removing guarantees, and making the presentation clear enough for an ordinary consumer to understand. Seller pressure does not excuse inaccurate advertising.

• A verification disclaimer does not cure advertising that is misleading from the start.
• Social media promotions are still advertising and must meet the same accuracy and clarity expectations.
• Seller instructions cannot authorize a registrant to publish inaccurate or misleading property promotion.

Advertising should be clear, accurate, and not misleading, even if stronger wording might attract more attention.

Question 10

Topic: Listing, Marketing, Seller Services, and Residential Sale Preparation

A seller tells their agent that the basement had water entry during two heavy rainfalls in 2022. The seller made an insurance claim, had grading work and a sump pump installed, and has not seen water since. A buyer’s agent asks in writing, “Has there ever been a water problem in the basement?” The seller’s draft reply says, “The basement is dry and the seller is not aware of any current water issues.” Which revised reply is most appropriate?

• A. “The basement is dry now, so there are no water issues to disclose.”
• B. “There was minor dampness in the past, but the issue has been resolved.”
• C. “The seller cannot confirm any basement water problem and recommends relying only on a home inspection.”
• D. “The seller reports water entry during two heavy rainfalls in 2022, followed by grading work and sump pump installation. The seller has not seen water since, and available repair records can be reviewed.”

Best answer: D

What this tests: Listing, Marketing, Seller Services, and Residential Sale Preparation

Explanation: A response to a direct disclosure question must not rely on silence, assumptions, or selective wording. Even if the seller believes the repairs worked, the known history of water entry is responsive to the buyer’s question and may be material to the buyer’s decision. The corrected statement should clearly identify what the seller knows, describe the repairs without overstating them, and avoid giving a guarantee. If supporting records exist, they may be made available, and the buyer can still conduct their own due diligence. A real estate agent should not help craft a misleading reply that answers only the “current issue” part while omitting the known history.

• Saying the basement is dry now omits the direct history asked about and could mislead the buyer.
• Calling the event “minor dampness” selectively softens the facts and assumes the issue is fully resolved.
• Refusing to confirm a known past problem shifts responsibility to the inspection and fails to answer accurately.

It corrects the selective wording by disclosing the known history, the repair facts, and the limits of the seller’s current knowledge.

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Related focused pages

• Free RECO C2 Practice Exam: Residential Real Estate Transactions
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• Free RECO C2 Practice Questions: Residential Property Types and Pricing
• Free RECO C2 Practice Questions: Buyer Services, Offers, and APS Documents
• Free RECO C2 Practice Questions: Residential Leasing and Compliance

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