Humber/Ontario Real Estate Course 3 Exam Practice

What establishes the standard of care owed when working with buyers and sellers?

1. A limited duty of care involves both providing information and performing functions for a buyer customer, but not a seller customer.

2. A standard of care is established based on how reasonable real estate salespersons would conduct themselves under similar circumstances.

3. A salesperson should not answer any questions about home inspectors posed by a buyer customer because, in doing so, he or she would be giving advice to that customer.

4. When working with buyers and sellers, a limited duty of care is owed to both regardless of whether they are clients and customers.

The correct answer is: A standard of care is established based on how reasonable real estate salespersons would conduct themselves under similar circumstances.

The standard of care owed when working with buyers and sellers in real estate is primarily established by examining how reasonable real estate salespersons would conduct themselves under comparable circumstances. This benchmark is crucial because it ensures that real estate professionals act with the appropriate level of competence and diligence expected in the industry. Such a standard is based on the practices of peers in similar situations, which helps to ensure consistency, professionalism, and the protection of clients' interests. In this context, real estate professionals are expected to maintain a level of knowledge and expertise that reflects current market conditions, legal requirements, and ethical considerations. This standard serves as a guideline for evaluating whether the actions of a salesperson were appropriate in a given scenario, thereby holding them accountable to the expectations set within the profession. The other choices do not accurately capture the essence of the standard of care. The idea of a limited duty of care suggests a disparity in the level of service provided to clients versus customers, which does not align with the general expectation of equitable treatment in real estate transactions. Additionally, while caution is necessary regarding giving specific advice, especially on technical matters like home inspections, a salesperson's role does involve providing relevant information to assist buyers, which is not fully represented in the choice focusing on avoidance of advice. Finally