Humber/Ontario Real Estate Course 3 Exam Practice

If a salesperson's uncle is interested in a property the salesperson has listed, what should the salesperson do?

1. Have another salesperson present the offer to avoid any conflict of interest.

2. There's no need to disclose the family relationship as it is irrelevant to the seller.

3. Inform the seller client about the family relationship.

4. Terminate the agency relationship with the seller and sign a buyer's agreement with the uncle.

5. Cancel the listing and let another brokerage handle the property.

6. Refuse to work with the uncle altogether to avoid any issues.

The correct answer is: Inform the seller client about the family relationship.

The correct course of action is to inform the seller client about the family relationship. This aligns with the principles of transparency and full disclosure in real estate practices. When a salesperson has a personal relationship with a potential buyer, especially a close family member, it is crucial to disclose this information to the seller. This ensures that the seller is aware of any potential conflicts of interest and can make informed decisions regarding the sale. Keeping the seller informed fosters trust and maintains the integrity of the transaction. The seller may have specific concerns or preferences about dealing with family members of the salesperson, and understanding the relationship allows them to navigate the selling process more comfortably. Additionally, many professional and regulatory bodies in real estate require agents to disclose such relationships to uphold ethical standards in the industry.