Humber/Ontario Real Estate Course 3 Exam Practice

If a salesperson notices moisture issues in a property and advises the buyer to include a home inspection clause but the buyer refuses, what is the salesperson obligated to do?

1. If a latent defect is discovered, a home inspection is mandatory.

2. Salesperson must obey the buyer client's instructions, but should consider having the client confirm the declined recommendation in writing.

3. Salesperson can offer to investigate the issue himself, instead of involving a home inspector.

4. Salesperson can suggest the home inspection clause be omitted from the offer and be added subsequently, once the seller accepts.

5. The salesperson should cancel the transaction.

6. The salesperson should include the inspection clause despite the buyer's refusal.

The correct answer is: Salesperson must obey the buyer client's instructions, but should consider having the client confirm the declined recommendation in writing.

The correct answer is that the salesperson must obey the buyer client's instructions, but should consider having the client confirm the declined recommendation in writing. This is important because it reflects the principle of agency, where the salesperson has a fiduciary duty to act in the best interests of their client. However, the client retains decision-making authority. Documenting the client’s refusal can provide protection for the salesperson, as it shows that the client was informed of the potential risks and chose not to take the recommended action. This protects both the client and the salesperson in case any issues arise later on. The other options imply actions that could breach the obligation to respect the client's wishes or involve the salesperson overstepping their role. For example, insisting on including a clause against the client's wishes may lead to trust issues and potential legal ramifications, as it does not honor the buyer's autonomy in decision-making. Similarly, investigating the moisture issue personally is not within the salesperson's scope of practice, as it could lead to liability if misjudgments occur. Suggesting the clause be omitted now with plans to add it later complicates the offer process and may create misunderstandings. Lastly, cancelling the transaction outright does not respect the buyer's autonomy to proceed despite potential risks.