Humber/Ontario Real Estate Course 3 Exam Practice

If Buyer Nolan indicates interest in bargaining a house price at an open house, what is Salesperson Kelly's first step?

1. Disclose that she works for the seller

2. Negotiate the price as Nolan requested

3. Offer advice on strategy without bias

4. Refer Nolan to another agent

5. Negotiate with the seller on Nolan's behalf

6. Discuss general market conditions

The correct answer is: Disclose that she works for the seller

When Buyer Nolan expresses interest in negotiating the price of a house, the first step for Salesperson Kelly is to disclose that she works for the seller. This is crucial because it establishes the agency relationship and ensures transparency in the transaction. In real estate, agents have a fiduciary duty to their clients, which means they must prioritize their client's best interests and disclose any potential conflicts of interest. By informing Nolan that she represents the seller, Kelly is adhering to ethical guidelines and legal requirements that protect all parties involved. This disclosure lays the groundwork for any further discussions or negotiations. It helps Nolan understand that while Kelly can provide information and facilitate the process, her primary responsibility is to the seller. Understanding this relationship upfront is essential for maintaining trust and clarity in the negotiation process, as well as for compliance with real estate laws regarding dual agency and representation.