Humber/Ontario Real Estate Course 3 Exam Practice

A salesperson discloses seller motivation at an open house. This act is:

1. Prohibited, as they must protect client confidentiality.

2. Permissible, if it helps the property sell faster.

3. Neutral, as long as it does not affect the sale price.

4. Encouraged to secure buyer interest.

5. Recommended in a buyer's market.

6. Standard practice in competitive markets.

The correct answer is: Prohibited, as they must protect client confidentiality.

Disclosing seller motivation at an open house breaches the principle of client confidentiality. In real estate transactions, a salesperson has a fiduciary duty to protect their client's private information. This confidentiality obligation is fundamental to maintaining trust in the client-agent relationship. When a salesperson reveals a seller's motivation, it potentially undermines the seller's negotiating position and could lead to unfavorable outcomes for the seller. For instance, knowledge of a seller's urgency to sell might empower buyers to make lower offers, knowing the seller may accept them quickly. Upholding client confidentiality is essential for ensuring that all parties in a transaction are treated fairly and that the seller's interests are safeguarded. Other perspectives may suggest that disclosing this information could benefit the buyer or encourage quicker sales, but these do not take into account the critical duty of confidentiality and the potential adverse effects on the seller's negotiating power. Therefore, the act of disclosing such information is rightly considered prohibited.